Fierce competition, narrow offerings stymie Malaysia’s digibank sector

[KUALA LUMPUR] Digital banks, once hailed as the next big thing in Malaysia’s financial landscape, are facing an uphill battle to live up to the initial hype, with progress slower than expected due to limited offerings and ongoing trust concerns.

Of the five digital banks granted licences by Malaysia’s central bank in April 2022, only three have begun operations; the other two have yet to launch their services.

GXBank, a subsidiary of Singapore’s GXS Bank – a joint venture between Grab and Singtel, is the first digital bank that officially launched its operations in November last year.