Digital banks must lower costs, speed up loan process and serve the underserved -- Samenta

KUALA LUMPUR, April 29 (Bernama) -- The Small and Medium-Sized Enterprises Association of Malaysia (Samenta) has called for lower banking and financing costs with the introduction of digital banks.

It also wants faster application and approval times, and prioritise serving Malaysian SMEs, particularly micro-and online-based businesses that are currently underserved.

Samenta chairman Datuk William Ng said in a statement that the awarding of these digital banking licenses was a huge step forward for the financial industry, and “we congratulate Bank Negara for taking this bold step to further liberalise access to banking and finance for all Malaysians.”

Moody’s Investors Service financial institutions group assistant vice-president Tengfu Li said the five new digital banks in Malaysia would spur competition and innovation in the banking system, expanding financial inclusion. “Still, large rated banks are strengthening their own digital capabilities and are positioned to withstand the competition,” he said in a separate statement.

Grab Financial Group (Digibank) senior managing director Reuben Lai said the Malaysia digital bank consortium was honoured to be given the opportunity to build a next-generation digital bank and drive access to financial services for underbanked Malaysians.

Grab Holdings and Singtel announced today that GXS Bank Pte Ltd, their digital bank joint venture, and a consortium of Malaysian investors including Kuok Brothers Sdn Bhd, have been selected to receive a full digital banking licence in Malaysia.

“We will leverage the consortium’s combined strengths, including our technology expertise, data from highly engaged consumers using everyday services, experience providing financial services across Southeast Asia, and deep understanding of the Malaysian market, to redefine the banking experience for underbanked Malaysians and improve their economic outcomes - small businesses will have access to growth capital, and individuals the opportunity to dream bigger,” Lai said in a joint statement by Grab and Singtel.

-- BERNAMA