Digital banks at turning point


MALAYSIA’S digital banking sector entered 2026 with a level of scrutiny it has not faced before. Once hailed as catalysts for financial transformation, the five digital bank licensees find themselves defending their relevance amid leadership reshuffles, measured customer growth and a tightly regulated environment that prioritises prudential safeguards over rapid experimentation.

The departure of several senior executives such as those from AEON Bank, Ryt Bank and KAF Digital Bank in recent months has done more than just raise eyebrows.

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