Moody’s: Challenger banks have growth potential

“We expect the challengers to continue to gain in scale and stature,” said Petr Paklin, vice-president and senior analyst at Moody’s.

PETALING JAYA: Digital challenger banks, which benefitted from the accelerated digital shift caused by the Covid-19 pandemic, are set to keep growing via innovative low-cost offerings, while steadily building market share and widening their product base, according to Moody’s Investors Service.

“Around half of the 20 largest challenger banks are profitable. They are financial technology (fintech) firms with a banking licence and their speciality is leveraging technology to dramatically lower costs and improve the client’s experience.