Deloitte: Banking, financial services competition to intensify

KUALA LUMPUR, Sept 24 -- Following the advent of financial technology (fintech), the competition for banking and financial services in Malaysia is going to be intense, said Deloitte Malaysia.

In a statement today, it said many industry players have publicly announced their interest and application submission for the digital bank license, noting that Bank Negara Malaysia had received 29 applications over the six-month application period which ended on June 30, 2021.

Deloitte said the applicants bring a decent diversification of profiles, ranging from local conglomerates to incumbent banks, state governments, retail, BigTech, fintech, telecom companies and more.

“For more than a year now, Malaysia has been busy with the digital banking season, with lots of action and aspirations for the digital banking license.

“Although the final licence application count is less than the anticipated range of 40-50 applicants, we have seen good participation from both local and international entities,” it said.

Financial Services director Gopal Kiran said a successful digital bank requires attributes such as comprehensive business strategy, right partners and talent, light-weight technology stack, strong risk management fundamentals, fresh marketing techniques and portfolio management.

“Aspirants should never let go of a chance to attain any of these attributes early, in an effort to beat the competition.

“We believe many digital bank aspirants would have realised the importance of these attributes and made the necessary strategic plans to succeed,” he said.

-- BERNAMA