Digital banks to boost financial inclusion in SE Asia - Moody's

Credit ratings and research firm Moody's said digital banks will drive innovation and improve access to financial services among the unbanked and underserved in Southeast Asia. As central banks and regulators launch new licensing rules to hasten the entry of digital banks, Moody's said large incumbent banks will be triggered to digitalise to stay ahead of the competition. Smaller banks, however, will face competition from digital banks and incumbents. Moody's Assistant Vice President and Analyst Tengfu Li said the entry of digital banks will promote growth in banking systems by enhancing the public's access to banking services, in a region where financial inclusion remains modest.