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Digital banks should focus on under-served sectors

Digital banks should focus on under-served sectors

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According to KPMG's latest report entitled Digital Banking: The Inclusive Agenda, in a post-Coronavirus Disease 2019 (Covid-19) world, the financial services sector will be a key driver of economic recovery and growth. In particular, the stage is set for digital banking to thrive.

"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,” said Adrian Lee, Head of Financial Services.

According to Yeoh Xin Yi, KPMG's Head of Financial Risk Management, a successful digital bank should incorporate the following three areas into its strategic blueprint.

The KPMG online survey revealed that 82% of the 1,220 respondents in Malaysia indicated that they would consider opening a bank account through online platforms only if they were regulated by Bank Negara. The study also revealed that 77% of the respondents believed that digital banking is the next evolution in financial services, and 82% are already using Internet banking functions of their banking service providers.

The unserved and under-served of the B40 groups in Malaysia should be onboarded to financial service platforms that can help in cashflow management, enabling micro-savings or deposits, microinsurance that safeguards their basic needs, and basic financing products to tide them over their financial trouble if the need arises.

Click to read the full article published in Borneo Post (Kuching)

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