Malaysian Digital Banks: All You Need to Know
ฝัง
- เผยแพร่เมื่อ 7 มิ.ย. 2024
- 5 digital banks to be fully launched in Malaysia very very soon! Watch to know more about digital banks in Malaysia. 🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ www.interactivebrokers.com/mk...
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⬇️ Timestamps:
0:00 → Intro
0:44 → Why Digital Banks in Malaysia?
2:07 → Loan Approval
3:56 → Credit scoring data
6:11 → Banking Activities
10:24 → Product offerings
13:36 → Conclusion
Why Digital Banks in Malaysia?
Digital banks in Malaysia are part of a strategic move by Bank Negara Malaysia to extend financial services to underserved or unserved groups. This includes individuals with poor credit scores, freelancers without regular payslips, or small businesses lacking substantial financial records. An example highlighted is of a wealthy individual unable to secure a credit card due to a lack of local financial history, underscoring the need for these inclusive banking services.
Loan Approval: Digital banks simplify loan approvals, catering especially to the B40 income group. They provide easy access to microloans and installment plans without the stringent checks typical of traditional banks. These banks also use dynamic pricing to balance the higher risk of their customer base.
Credit Scoring Data: By utilizing the algorithms and machine learning, digital banks assess financial health through alternative data sources. This advanced approach allows them to understand customers' financial situations better, offering a more nuanced credit scoring than traditional banks.
Banking Activities: Digital banks offer a distinct advantage in convenience and accessibility. They are especially beneficial for people in remote areas who might otherwise need to travel long distances for banking services. The discussion includes an international example to illustrate the transformative impact of digital banking on financial inclusion.
Product Offerings: The innovative and attractive product offerings of digital banks set them apart. Examples include unique banking products from Singapore's Trust Bank and anticipated offerings from Malaysia's own GXBank and RHB-Boost. These banks are expected to leverage their existing networks to provide a variety of incentives and rewards.
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Haha, Public Bank used to be the fastest serving bank in Malaysia with their exceptional over the counter queue time.
But today, they are the slowest because their digital banking is just way way way way way behind all other banks.
Everything also need to queue and sign physically 🥹
I'm Singaporean and spending half my time between SG and HK at the moment. I'm mostly on Revolut Metal, Trust, Citibank and POSB/DBS. I have my wise, youtrip on standby which I hardly touch. Digital Banking has changed my ways of spending and banking. Highly recommend anyone to try then shift to whichever makes sense to u!
Wahhh nice, thank you so much for sharing! Can't wait for our digital banks to be mature as soon as possible!
Awesome video! Very comprehensive video! Been waiting for someone to talk about real digital banks and conventional banks in Malaysia.
Glad you enjoyed it! Would you consider opening an account yourself?
@@ZietInvests Yes, I will. Since scammers are everywhere these days. I feel that it can serve as a good checking account for me since its relatively easy to open and close account. The traditional bank can continue to serve as my FD/saving/emergency account since its demotivates me to touch them unless its needded. How about you?
@@yweiyuen3560 I will definitely open to try out themselves as I'm a frequent GrabFood / Shopee user haha! Can use some extra loyalty points/rewards - why not xD
@@ZietInvests yea!! cant wait for the YTL-Sea digital bank. It will be great if they integrate shopee into it.
@@yweiyuen3560 im sure they will! ;)
Definitely more convenient but nonetheless, with the cyber security being one of the main reasons for people to fully trust digital banks. Guess I have to wait it out until things get stabilized. Looking forward towards this digital age of banking.
With every light it comes with darkness - definitely can't wait for the stabilised version myself! Their potential are limitless!
You will be surprised how everyone is the same
@@choysum Fundamentally, that's possible if BNM wants everyone to grow into the same mold. Let's hope that's not the case because we definitely don't need anymore banks that does the same thing as the current one do
Terima kasih bang sebab bagi info dan ilmu👍👍
Terima kasih bro💪🏻💪🏻
Good , very informative 👍 ziet👏
Thank you!😁
since i register GX bank,i love the convience of digital bank,and the 3% interest is quit good for those dont need to think too much, hope gx bank can expand faster so that more platfrom can support gx bank
Well done! 👍🏻
Thank you jessica!🥰
Hi there, I have question how bout remittance to another country with same digital banking, is it still high charges?
gx bank doesnt allow me to open a gx acc without an acc in malaysia...i thought i can easily open a gx acc without queuing at the bloody branch..but gx bank have a ridiculous requirement which is need an existing account in malaysia... that makes unbanked communities lives to be difficult by now...😢😢
I used to live in Lithuania & had Revolut, best bank account I ever had. But now that I'm back in Malaysia & my visa expires, they closed down my account. Patiently waiting till the day Revolut is open for Malaysians too :/
Digital banking the way forward. Very low overhead cost. Employees and office spaces. Just just great.
Can't deny that! These might open new avenues/features/offerings for all of us😊
Hi Ziet, I was wondering if you know why is the commission(EST.) in IBKR 1.91USD instead of 0.35USD when I preview my order ticket even though I am in a tiered pricing plan? Could you please advise
There might be several reasons
1. Larger order size
2. You are trading stocks that are not US domiciled
Can refer to my video here for price structure!
th-cam.com/video/qQOvH1PDR20/w-d-xo.html
Im like your friend. Only need to place small FD as security for credit card. Now i have ctos
Nice to know that! Thank you so much for sharing!!
Just wondering, if GXbank is the first digital bank is Malaysia, then is Rize a legal digital bank? Since it begins operation much earlier than GX bank
Good question! Rize is not part of the 5 yes, but yes they are called "digital bank" - might be confusing, but from my knowledge, they have different license to operate banking business and collect people's money, but i dont think they have the permission (license) to give out loans like licensed digital/traditional banks
@@ZietInvestsactually rize did offer a personal financing loan but yeah, maybe it was not called the first digital bank in Malaysia because it was introduced by an non-local bank/company?
Good info bos! Thank you!👍
Glad you found it useful fazil!
Hey Suppp!
I have an unrelated question - I noticed the stylish watch you're wearing in the video.
Would you mind sharing the brand or model with me?
Hi buddy! I'm wearing a Tudor Black Bay 58 (navy blue)😁
@@ZietInvests Thanks! That's a cool watch u got!
Someone points I don't really agree, such as some bank like HLB, already provide live chat few years back. What digital bank can do now, we can do it in most traditional bank via app/online, even we can freeze and block card already, and open account via online. So far, I (or mostly for Malaysian) can't see GX Bank provide better offer or rate compare to traditional banks. The best thing of digital bank is they offer daily interest, which is same as Versa Cash, KDI Save, Tng Go Plus etc
Hi nelson, you have some valid points! Indeed whatever they can offer now (or for the first 3 years) might just be catching up with what the traditional bank offers, but it would be a game-changer once they start rolling out alternative data credit scoring, and also how they support SME when it comes to digital banking is also something im looking forward to (p.s. M2UBiz platform is so old and dated!)
maaf nk cakap..bila dh daftar esok nyer bertubi tubi dpt call dari ejen loan angkasa, penghargaan maybank, penghargaan celcom..target government servant
You have to do housing loan principal repayment at public bank counter. Very inconvenient
Do you mean the monthly instalment (principal + interest)? that one i can do via e-PB app online banking oh
monthly instalment, yes can be done via online.
But if you have spare cash and wish to decrease the total loan amount (to save interest for your semi flexi loan), you have to do it over the counter :(
Probably they make it incovenient so that they can charge you interest for longer period of time
@@brandonling9663 Oh that one! They told me e-PB can do that already, just that withdrawal still need to email and wait 3 days, but can be done online (according to my PBB banker lah). Maybe you can ask a younger banker/staff? They older ones maybe not updated with their systems haha
If they dont have a physical branch, how do i put my initial money into the digital bank account? Assuming im b40 and dont have access to any tradiitonal banks. I work and get paid in cash daily. How do i digitize my money?
I just visited their website. These are the requirements to open a savings account at GXBank:
1. Malaysian
2. Aged 18 or older
3. Doesn’t have any savings account with GXBank
4. *Hold a bank account with another bank in Malaysia*
5. Have a Malaysia registered mobile phone number
Initial fund deposit must be made within 90 days to activate the account.
Requirement #4 boggles my mind as it defeats the purpose of serving the under-served who do not have a bank account.
Hi Ziet can you talk about whether if bond ETFs would benefit from a rate cut? Thx
If your etf holds stocks that benefit from a rate cut answer is yes
Thank you heemeng for the answer! And yes - it depends on the underlying assets of the ETF, not the bond itself since that's quite general (but let me look into it if i can make a video to explain it!)
Appreciate the question
@@leeheemeng3799 yeah my question is for ETFs that hold bonds only.
Since everyone is talking about how rate cut will result in bond prices rising, would bond ETFs benefits from this? Because so far i have seen some conflicting answers and hopefully Ziet could help clarify on this
@@kenkiz100 Great observation and research - I'm sure it will always be conflicting depending on which angle you're looking at. Let us look into it!
How can the "underserved" or the "unserved" to deposit to digital bank if digital bank don't have physical branch?
Good question, that is why it is still a bit iffy in that sense:
- retail wise: they still can have physical cards to access ATMs
- SME wise: its more on the loan credit scoring being eased
It's definitely a slow n length process before all the transactions/payments are all done digitally, until then, the problem of that segment not being in touch with a physical branch will be a lingering problem
Can Digital Bank have to do things with CCRIS andd CTOS? Will it be different than the traditional bank? Will Traditional bank look at our Digital Bank report if we want to have another traditional card? Will Digital Banks will help us in easy getting loans ?
Yes! Digital banks in Malaysia, like traditional banks, report to CCRIS and CTOS. So, your digital bank activities will be considered if you apply for a traditional credit card or loan. The approval criteria are similar for both, even though digital banks might offer a more streamlined process. Keep your credit health in check, and you'll be good to go!
would like to know whether our account is being covered by PIDM if we start switch to digital banking???
GxBANK got covered until RM250K I think,I can check it at their website
Yes they are covered by PIDM!
"We hold a digital bank license by Bank Negara Malaysia (BNM). And as a member of Perbadanan Insurans Deposit Malaysia (PIDM), deposits with us are protected by PIDM up to RM250,000 for each depositor."
gxbank.my/#:~:text=We%27re%20a%20real%20bank,RM250%2C000%20for%20each%20depositor.
For depositor's monies that was lost by the banks, PIDM will pay back ?
Under RM 250,000 - yes!
GXBank gave RM20 extra when you deposited min RM100 a while back during launching. Not sure it still valid now. Current interest at 3.00% p.a
Yes i think still valid at the moment! Thanks for sharing 😁
History repeating itself, digital banks are serving the B40, like how public bank served the rising middle class in the 70s and 80s, bringing banking to the underserved, but its definitely a wait and see approach, it is interesting though, as a lot of money market funds and digital banks are offering decent interest rate, taking customer away from traditional FDs, i foresee that young people likely will use these cash management solution such as versa, TNG+ and also digital banks, how will traditional banks respond? as only left with older people using FDs
You're spot on! Nowadays, more people are choosing digital banks and money market funds because they offer better interest than the usual fixed deposit. Many young peeps are starting to use apps like Versa and TNG+ for saving their money (see the growth of money market fund players!).
For the traditional banks, they definitely have a lot of catch up to do!
@@ZietInvests Agreed, i personally am taking out my expired FDs and putting them into money market fund or digital banks like rIze thats giving my ard 4%, KDI and versa also 4%, with flexible withdrawal anytime and interest accumulated daily, any FD below 4% i wont even consider
Deposits actually have the lowest cost of funds for banks. So, if the digital banks plan to offer attractive money market rates in the long term to their depositors, it's going to eat away their net interest margin. Not to mention, digital banks don't have as much data about their customers, so their loans are going to be riskier and have a higher default rate.
@@Eugenewong794 Great to know you are getting the most out of your ringgit here!
@@ivanwong7456 Definitely! It's going to be a short-term play until their loan books (and credit scoring algorithm/mechanism) are established, else it's just burning money for customer acquisition
If you ever live in UK or EU area they have more than handful of digital banks for them to use, revolut for example a single account with various currencies. Digital is the future refuse to learn will only make your life harder.
Some of my friends swear by these cards (like Revolut) for the simplicity and ease of forex (at really decent rates) but unfortunately we don't have them (yet) here :(
@@ZietInvests I have been using app-only Starling, Revolut, Monzo and Chase in the UK for years and it is the only way forward. No foreign exchange fees for travelling and Mastercard rates. They also offer business accounts.
Malaysian banks are still very "traditional".... OMG!!! The long waiting time for counter queue.... Sometimes... one branch only handles car loan while another branch handles home loan only.... crazy!
I know right 🥹 hopefully digital bank can slowly evolve to solve all these problems!
What will you recommend Singapore digital banks? I do not want Malaysia. I cannot find any answer in Google Search
I dont think malaysians can open a digital bank account in singapore yet
So is it safe for us to transfer our savings to digital bank like GX bank for now? Or shall we Jz wait….
Yes, since its PIDM covered for RM 250k
@@ZietInvestsKnown anyone that submit a claim?
It is because of safety/privacy reason, traditional bank want us to walk in to verification ?
Yes! That's most likely the case, but could also be they are not updated to the digital way of verifying one's identity, or just they want to streamline the process to cater for most B40s that won't have any form of digital ID. Hope this clarifies!
Can UNHCR refugees own an account?
What is stopping current digital bank licensees from offering the lucrative mortgage facility to home buyers? All they have to do is to charge lower interest rates, and provide a speedier and simpler approval process? They will reach the 3 billion asset threshold in no time.
You're not wrong - in fact most of the DBs mentioned won't have much issue to hit the 3 billion asset cap (very soon), given their existing customer base that they're gonna leverage on (even without mortgage facility); as such they will push to graduate earlier from the foundational phase to start moving towards profitability!
Mortgage facility - usually abit too complicated to implement at the start for the purpose of hitting asset cap, not worth the cost as its a lower-ROI product to achieve the same outcome (hitting the asset cap); they can just roll out lower deposit rates/ sign up bonuses/loyalty rewards at a much lower Customer Acquisition Cost
Is it the bank reserve ratio issue? or is it the size of the bank's capital base? The mortgage facility is the most profitable and has a lower risk because the underlying collateral is the house/property coupled with a one-sided agreement that an applicant has to sign. To me, this is a no-brainer issue. i.e if I am going to be given a banking license I will go for the low-hanging fruits. I am not privy to the terms and conditions of the license agreement so I am not sure whether BNM deliberately restricts this as a kind of sandbox so as not to disrupt the banking industry? @@ZietInvests
How to reload boost beyond card I confuse
hmmm i dont use their card tho :x sry!
Individu bankrap boleh apply tak?
Hi, im not very sure about that because sometimes bankrupt person might have certain restrictions when applying for financial accounts - but can always give it a try since they are free to open
Using gx bank currently . Nice return canta wait for the card release
Me too! Waiting for the card n more deposit bonus hehe
can i know is gx bank is a save app.
They are licensed and regulated by Bank Negara Malaysia! That spells safety to me!
If digital bank can solve so called lost money issue then is a hit.
what's lost money issue if you dont mind sharing more about it?
I hope when Shopee-YTL's digital bank will offer a Visa debit card instead of Mastercard.
We’ll see!
Can foreigner open malaysia digital bank account?
At the moment, based on GXBank, they only allow Malaysians to open. Might take some time before they start allowing foreigners to open (like conventional accounts), if they ever
B40 gt a personal loan to buy a iphone is not a good idea 😂
Hope to see video comparison of those digital bank with what benefit they offered in future.
Btw Hong leong bank can open account completely online. I use it to save emergency fund in their e-fd. They offer good rate for fresh fund transfer, jz need to transfer out to another bank and fpx it again to gt the higher rate.
While i 100% agree its not a good financial decision for them to buy the iphone, it is unfortunately one of the most lucrative segment to make interest income off (for banks) due to their late payment interest etc. :x
Please stay tuned on the full comparison videos in the future! 😊
Nice to know that! Thank you for sharing!!
Hi ziet, any digital bank provide shariah compliant product?
The 2 islamic digital bank license winners will most likely have shariah compliant products!😄
Recently AEON BANK announced as a first and fully syariah complaint.
Which one accept crypto?
None of them 😂
My problem with them is that they are not innovative enough to offer products that people will flock to use. I think touch n go is a pioneer of offering innovative products but even them has not gone far enough
Sometimes its not the matter of whether they are creative or innovative or not.
It could be regulatory limitations that stops them from progressing in fear of cannibalising the existing financial systems.
Bro. You can ask your multi millionaire friend to pledge few hundred thousands in bank FD. The bank definitely WILL give him credit card.
She doesn't want to bring back the money to MYR 😂
@@ZietInvestsif she’s truly a multi-millionaire and wants to settle down here, what is 50 or 100 thousand ringgit in a local bank for living expenses? That’s small change for them.
FD and current or savings account offers foreign currencies too right
Why with the grab Food driver? 😅
Hello~ that is just 1 small example of how social scoring will be part of your credit score (i.e. your behaviour online, how you rate businesses, how you interact with ecommerce & social media etc.)
Sorry if I am uninformed. Are there any digital banks that are shariah-compliant? Thanks
The 2 digital banks (yet to launch by KAF and Aeon) with islamic license should be fully shariah-compliant!
is touch n go also count as digital bank?
Nope! They are technically an e-wallet licensee, meaning cannot take too much deposits and give loan
gx bank? owned by opera gx ? 🤔
Owned by Grab.
Grab-Kuok-Singtel
basically still ahlong
Hmm....legalised loan business...
US style private credit firms in making..
👀why'd you say so?
@@ZietInvests Just my personal opinion. I am viewing the idea of offering loans to customer to be similar with the US private credit firms. Most of their customer will be those not qualified under conventional loan for whatever reasons. And given the higher risk profile of the borrower and higher loan approval rate, borrowing interest charged will be of course higher. This may be also a way for them to be able to offer higher saving interest rates to their customer. It is not a bad thing though, especially for the borrower. It is just that this model of loan offered to customer may result in higher risk of default and unlike US where it is a free market, our government might need to step in to bail out the digital banks before it escalate to banking crisis. But that is for a longer term and hopefully there is some countermeasure to make sure everything is in place. For now, it is a very good start as digitalisation is something we have to embrace and normalise it in our daily life.
@@wfy914 Ahhh thank you so much for your explanation - that makes a lot of sense! I believe there is a stop-loss similar mechanism set in for the DBs to maintain a certain quality-asset:loan ratio to prevent a similar SVB fallout! (Knowing BNM is always on the conservative side :P)
How about Be U by bank islam?
Hello! I believe Bank Islam is not part of the 5 consortium that won the digital banking license, their offerings might be limited as they have different license instead (might have limitation in giving out loan, their loan book size etc.)
List of 5 licensed digital banks: www.bnm.gov.my/-/digital-bank-5-licences
Malaysia banks? No way. Every transaction, in and out, local and international, is often scrutinised for money laundering. That's why banks take so long to clear an international transaction. Also, can't use card number to buy stuff online after midnight.
That’s true on the security, but not a bad thing if you think from a safety POV.
After midnight usually just 1 hour maintenance, should be able to pay with cards 23 hr/day
TOO MUCH SCAMS JUST GET A SAFES AND USE IT LIKE THE CLASSIC WAY
Hmmm...that's technology, it's supposed to make people's lives better
Easier way to get into debt and eventual bankruptcy
Hmmm cant say like that one...else banks can all close shop d. Debt can be good or bad depending on how you use it
data privacy is dead 😂
cannot say like that la...AI and technology memang need data one ma
for AI!