According to a survey by KPMG, Malaysian consumers are ready and willing to embrace digital banking. Of the 1,220 respondents in Malaysia, 77% believe that digital banking is the next evolution in financial services.
82% of respondents said that they are already using the internet banking function of their banking service provider. Furthermore, 82% of respondents said that they are willing to open a bank account through online platforms – as long as they are regulated by Bank Negara Malaysia.
Head of Financial Services at KPMG Malaysia Adrian Lee said that the changing socio-economic landscape has altered customers’ money management and spending patterns as well as the way businesses are run. The mode of payments and channels of financial management are also changing too.
Lee added that the recent customer behaviours in both retail and commercial sectors during the Covid-19 pandemic have evolved in support of digital banking services. “As customers and businesses seek alternatives to safely run operations, the potential is great for digital banking to be the next success story for the financial services sector in Malaysia,” he said in a statement.
Last year, Bank Negara Malaysia (BNM) announced that it will be giving out five digital banking licences to qualified applicants to establish digital banks. According to Lee, it is widely anticipated that BNM will see a large number of applicants for the licences due to lower entry requirements in minimum capital and significant market opportunities. Currently, the known contenders for BNM’s digital banking licences include Axiata Group, Razer, Grab, AirAsia, AMTD, Sunway, and the Johor state government.
“Given the emphasis BNM has placed on financial inclusion, the successful applicants will be the ones that demonstrate how their products and services will help the underserved and unserved segments rebuild themselves financially,” said Lee.