Ringgit notes are seen at a money changer in Kuala Lumpur June 20, 2018. — Bernama pic
“We believe that BNM is emphasising for a banking industry that is modern, innovative and technology-driven, yet mature and managed by experienced resources, as one of the key components for Malaysia digital economy and ingredients for a high-income nation,” it told Bernama in an email today. Touching on the future of traditional banks in the face to rapid technology innovation and change, FAOM believed that in order to survive, traditional banks must firstly, shift their corporate mindset towards being more open for collaboration to facilitate mutual and viable partnership with fintech firms.
Meanwhile, Frost and Sullivan Malaysia managing director and Asia-Pacific senior vice-president Hazmi Yusof believed that virtual banking would not disrupt the traditional banking sector as it would be the first to adopt the digital-only banking technology due to the market confidence backed by support from the authorities.
Other than that, Hazmi said multinational corporations , and small and medium enterprises would also be the target of neo banks due to the cost efficiency, flexibility and speed offered. “For example, CIMB Bank and Maybank have been closing and reducing the size of their branches since 2016, as they channel resources to focus on digital services.