No immediate competitive impact from digital banks, says Kenanga

KUALA LUMPUR: The entry of digital banks into Malaysia's financial sector does not pose any immediate challenge to the operations of existing banks given the time taken to set up and the smaller scale of operations than the conventional banks, says Kenanga Research.

In a note, the broker said the digital banks' operations will fall shy of that of conventional banks given their total asset cap of RM3bil during their three to five years foundational phase upon launch.