Digital banking can be a double-edged sword
While benefits include competition and innovation, digital banking also increases organisations' risk by enabling new forms of banking fraud.
THE Monetary Authority of Singapore announced on June 18 that 14 of the 21 digital bank applicants had progressed to the next stage of assessment to compete for the two digital full bank (DFB) licences and three digital wholesale bank (DWB) licences at stake.
From a consumer's perspective, this development is welcome as it would open up the closely-held traditional banking industry to new competition that can operate at lower costs and offer services that differ from brick-and-mortar lenders. However, there is a dark side looming in the wings - as banking shifts to digital channels, fraudsters have also been able to deploy new tactics to commit banking fraud.
This article seeks to highlight the upsides and risks of this digital banking revolution.
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