We expect digital banks to come up with innovative products and delivery channels to serve Singapore and its people. The key for digital banks is to identify unmet needs and address them. When they succeed, they will move Singapore closer to its Smart Nation vision.
Digital banks will also give the traditional banks some healthy competition, and push them to continue with their digital transformations. From a consumer perspective, people can look forward to innovation and more seamless delivery in terms of products and services as both the digital and traditional banks compete for their wallet share.
Digital banks, with their lower cost base and more efficient operations, can also potentially reduce transaction costs for consumers. Given the nature of digital banks, technology, data as well as money laundering and terrorist financing risks would be areas of focus. Digital banks must show that they can manage these risks well, to meet regulatory expectations and win their customers' trust.