PETALING JAYA: Digital banks’ main purpose is to provide more options for consumers, not to compete with traditional banks, said KAF Digital Bank Bhd chief executive officer Rafiza Ghazali.
She said digital banks are not designed to match the vast capacity of traditional banks, but instead focus on serving a more specific target audience.
"We are not built to compete with the traditional banks due to their sheer size. The intention of a digital bank is to provide additional choice for the market.
"So I think it is more for the younger generation, who feel more comfortable dealing with technology when it comes to banking," she told reporters after the 2025 Malaysian Financial Literacy Survey (RMFLS).
She said this in response to reports that deposits from digital banks account for less than 0.1 per cent of the total banking system in Malaysia.
The report also noted that digital banks’ outstanding deposits have declined by five to 17 per cent between December last year and June this year.
Meanwhile, looking ahead to Budget 2026, which will be tabled on 10 October, Rafiza urged greater collaboration between digital banks, the government, and industry players.
"On our part, we are committed to expanding awareness and outreach. Last year, we called for participation in the i-Tekad Programme.
"For digital banks, it is not possible to work in isolation; stronger partnerships with the government and industry stakeholders will be essential moving forward,” she added.
Budget 2026 is scheduled to be tabled in Parliament on 10 October by Prime Minister Datuk Seri Anwar Ibrahim. - Bernama
