CGS-CIMB Research expects digital banks to commence operations by 2023 to 2024 and only break even between 2026 and 2029. 

In a Wednesday (May 18) report, it noted that it thinks the digital banks will not be able to engage in long-lasting price competition with incumbent banks before they begin turning profits as this would further deplete their shareholders’ funds, which are much smaller than those of incumbent banks. 

The local research house shared that it recently hosted an expert speaker session (ESS), featuring a partner of Ernst & Young Consulting (EY) to address likely implications following the recent award of five digital banking licences by Bank Negara Malaysia (BNM) to the Boost-RHB Bank consortium, GXS Bank-Kuok Brothers consortium, Sea Ltd-YTL consortium, AEON consortium, and KAF Investment Bank consortium. 



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