Malaysia’s fledgling digital banks are grappling with challenges to hold onto deposits, as rivalry heats up with both peers and conventional lenders, according to an analyst. Initially successful in drawing deposits through attractive promotional returns, outstanding deposits at digital banks have declined 5%-17% between December 2024 and June 2025, Maybank Investment Bank (Maybank IB) said in a note. “Malaysia’s digital banks, in our view, are still at an infancy stage, with much room and opportunity for growth,” Maybank IB said. The challenge is now preserving the deposit base, it added.
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