Digital banks to compete for deposits

PETALING JAYA: With the five digital banks to begin operations in the coming months, competition for deposits will increase and this could put further pressure on net interest margins (NIMs) of conventional banks, says UOB Kay Hian (UOBKH) Research.

Of the five digital banks granted licence by Bank Negara, Grab-led GX Bank has officially been launched, while Boost Bank and AEON Bank are still in alpha testing mode, offering services exclusively to a select group of customers before a full launch.