Kuala lumpur: Digital banks’ main purpose is to provide more options for consumers, not to compete with traditional banks, said KAF Digital Bank Bhd chief executive officer Rafiza Ghazali. She emphasized that digital banks are not designed to match the vast capacity of traditional banks, but instead focus on serving a more specific target audience.

According to BERNAMA News Agency, Rafiza stated, “We are not built to compete with the traditional banks due to their sheer size. The intention of a digital bank is to provide additional choice for the market.” She noted that digital banks are particularly appealing to the younger generation, who are more comfortable with technology in banking. This statement was made in response to reports indicating that deposits from digital banks account for less than 0.1 percent of the total banking system in Malaysia.

The reports also highlighted a decline in digital banks’ outstanding deposits, which have decreased by five to 17 percent between December of last year and June of this year. Rafiza acknowledged these figures while discussing the future of digital banks in the country.

Looking ahead to Budget 2026, which is set to be tabled on 10 October, Rafiza called for greater collaboration between digital banks, the government, and industry players. She stressed the importance of partnerships, stating, “On our part, we are committed to expanding awareness and outreach. Last year, we called for participation in the i-Tekad Programme.” Rafiza concluded by asserting that digital banks cannot work in isolation and that stronger partnerships with the government and industry stakeholders will be essential moving forward.

Budget 2026 is scheduled to be presented in Parliament on 10 October by Prime Minister Datuk Seri Anwar Ibrahim.