KPMG expects a high number of applicants for the five digital banking licenses to be issued in the country on the back of lower entry requirements in minimum capital and significant market opportunities.
According to Adrian Lee, Head of Financial Services, successful applicants will be those who practice financial inclusion to help the underserved and unserved segments to rebuild themselves financially.
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.
Yeoh Xin Yi, Head of Financial Risk Management said a successful digital bank should incorporate three areas into its strategic blueprint: understanding customer behaviors and expectations, improving financial literacy and inclusion, as well as being an active platform.
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