New digibanks may push interest rates higher, but not for reckless market grab: MAS

NEW digital banks in Singapore could push interest rates higher amid heightened competition, said managing director of the Monetary Authority of Singapore (MAS) Ravi Menon.

But this does not swing into predatory behaviour so long as the digital banks do this with profitability in mind over the medium term, he told The Business Times in an interview.

And even as customers are seeking out a rebundling of financial services as a one-stop digital shop, most consumers will still want a bank with a physical presence too, giving incumbents an existing edge against competition from digital-only challengers.