Starting from 2022, Malaysia’s central bank will start issuing licenses for digital banking, hence joining the rankings which include Singapore and Hong Kong.
Ever since the pandemic started, there has been an increasing need for the digitalization of all sorts of acts that were previously more popular offline, with going to the bank as being one of them. However, the confinement to one’s housing does not stop the need to have to deal with the bank every once in a while, and visiting brick and mortar places may present a threat to health.
Hence, with Malaysia’s central bank issuing the first digital banking licenses from 2022 onwards, it is expected that more and more banks would be joining the crew too, kickstarting the Fintech landscape in Malaysia.
As of now, Malaysia is competitive in technology, as it accounts for 13% of global chip packaging and testing, and 7% of the world’s semiconductor trade passes through the country, with some value addition done via additional processing. With the rise of digital banking, Malaysia would have yet another item to add to its repertoire.
The rise is expected to uplift associated services, such as e-wallets, additional payment avenues, online shopping and more. This could also mean a rise in jobs requiring relevant skill sets, such as software development and more. Overall, the start of Malaysia’s digital banking next year spells good news for both businesses and the common people.