Banking – Malaysia
Digitalisation, Here We Come
As the deadline for the submission for digital banking licences looms, we
understand that most traditional banks are opting not to participate. We opine that the entry of digital banks is not expected to pose a significant threat. Incumbents and the new digital banks should complement each other in enhancing the financial inclusion and ecosystem, in our view. Maintain OVERWEIGHT given moderating credit cost outlook and attractive valuations. CIMB is our top sector pick.