RAM: Greater competition in unsecured retail lending, micro enterprise segments with entry of digital banks

RAM Rating Services Bhd is of the view that the entry of digital banks may fuel competition in the unsecured retail lending and micro enterprise segments of traditional banks.

RAM Rating Services Bhd 认为，数字银行的进入可能会加剧传统银行无担保零售贷款和微型企业领域的竞争。

In a statement on 29th April, the ratings agency said these segments represent about 7% and 4% of the banking system’s loans respectively, although the threat to incumbents in the near to medium term will be limited.

该评级机构在4 月 29 日的一份声明中表示，这些部分分别占银行系统贷款的 7% 和 4%，尽管在中短期内对现有银行的威胁将是有限的。

This is in view of the temporary asset threshold of RM3 billion for the first three to five years of a digital bank’s operations, as well as the licensing framework’s requirement to focus on driving financial inclusion to address market gaps in the underserved and unserved customer segments.

这是鉴于数字银行运营的前三到五年的临时资产门槛为 30 亿令吉，以及许可框架要求专注于推动金融包容性以解决服务不足和未得到服务的客户群的市场差距。

It added that digital banks are likely to target niche segments untapped by traditional banks, given the estimated digital banking market share of less than 0.5% of the banking system’s asset base.

它补充说，鉴于估计数字银行市场份额不到银行系统资产基础的 0.5%，数字银行可能会瞄准传统银行尚未开发的利基市场。

Moreover, RAM said the profit performance of digital banks will be constrained in the early years, given the hefty initial outlay to develop their ecosystems, market their products and create scale by occasionally offering promotional rates in a competitive operating environment.

此外，RAM 表示，数字银行的盈利表现在最初几年将受到限制，因为开发其生态系统、营销产品和通过偶尔在竞争激烈的运营环境中提供促销价格来扩大规模的初始支出将受到限制。

“It is paramount that traditional banks re-evaluate their current digital offerings to keep up with accelerated digitalisation to ensure long-term market relevance. Traditional banks can pursue digital transformation under the existing licensing framework without a separate digital banking licence. 

“至关重要的是，传统银行重新评估其当前的数字产品以跟上加速数字化的步伐，以确保长期的市场相关性。传统银行可以在现有许可框架下进行数字化转型，无需单独的数字银行牌照。

“Incumbents are seen upping their game by digitising existing banking operations and investing in new capabilities. Some banks are also leveraging the agility of fintech (financial technology) players through partnerships to accelerate their progress,” said RAM Ratings co-head of Financial Institution Ratings Sophia Lee.

“现有银行通过数字化现有银行业务和投资新能力来提升自己的竞争力。一些银行还通过合作伙伴关系利用金融科技（金融技术）参与者的敏捷性来加速他们的进步，”RAM Ratings 金融机构评级联席主管 Sophia Lee 说。

RAM said the five digital bank players will benefit from the spike in digital adoption spurred by the pandemic, and that the prospects ahead for digital banking are positive.

RAM 表示，五家数字银行参与者将受益于大流行引发的数字采用率飙升，并且数字银行的前景是积极的。

“Considering the ubiquity of smartphones and high digital adoption and market readiness, the market potential for digital banking is bright,” she said.

她说“考虑到智能手机的普及和高度的数字化采用和市场准备，数字银行的市场潜力是光明的。”

The ratings agency said the increasing internet penetration and use of smartphones are driving market growth in digital banking, pointing out that internet banking by individuals and mobile banking transactions jumped 40% and 290% respectively to RM1.2 trillion and RM800 billion over the last two years, based on Bank Negara Malaysia’s statistics.

该评级机构表示，互联网普及率的提高和智能手机的使用正在推动数字银行的市场增长，并指出个人网上银行和手机银行交易在过去两年分别增长 40% 和 290% 至 1.2 万亿令吉和 8000 亿令吉年，根据马来西亚国家银行的统计数据。

RAM added that the entry of digital banks is expected to spur financial innovation and accelerate the digitalisation of financial services, as these players’ proposition is delivering simpler, faster and more convenient solutions to consumers.

RAM补充说，预计数字银行的进入将刺激金融创新并加速金融服务的数字化，因为这些参与者的主张是为消费者提供更简单、更快和更方便的解决方案。

It said the issuance of two Islamic digital bank licences was an upside surprise, which affirms Malaysia’s commitment and role as an established global Islamic finance leader.

它表示，两个伊斯兰数字银行牌照的发行令人意外，这肯定了马来西亚作为全球伊斯兰金融领导者的承诺和角色。

“By utilising technologies based on artificial intelligence or other forms of predictive algorithms along with big data analytics, digital banks may undertake alternative assessments of credit risks to enable greater financial inclusion. 

“通过利用基于人工智能或其他形式的预测算法以及大数据分析的技术，数字银行可以对信用风险进行替代评估，以实现更大的金融包容性。

“As such, those who are unable to access financing products from traditional banks due to the lack of standard documentation or credit history could stand to gain,” added Sophia Lee.

Sophia Lee 补充道“因此，那些因缺乏标准文件或信用记录而无法从传统银行获得融资产品的人可能会受益。”