Deloitte: Banks can expect stiff competition from digital banks and fintechs

Banking institutions can expect stiffer competition from new digital banks and fintech companies as increasing complexities of customer expectations, interconnectedness of societies and technological innovations have brought disruption to the banking industry.

In a statement today, Deloitte Malaysia consulting executive directors Timothy Ho and Cheng Yen Chu as well as audit and assurance partner Joshua Yan said that late last year, Bank Negara Malaysia (BNM) announced the issuance of up to five licences to establish digital banks, off the heels of regulators in other Asean countries.

The trio said fintech companies are also disrupting various aspects of the traditional banking value chain, such as payment and lending, challenging the incumbents with differentiated product pricing, innovations and customer experiences.

Read more: The Edge Markets MY