How do digital banks aim to serve the unbanked and underbanked populations?

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Digital Banks Target Unbanked and Underbanked Through Enhanced Accessibility and Digital Economy Participation

Digital banks are designed to increase the participation of unbanked and underbanked segments of society in the digital economy by offering convenient access to financial services, irrespective of geographical location. Bank Negara Malaysia (BNM) has indicated that these institutions are intended to bridge the gap for those with limited or no access to traditional banking, enabling them to engage more fully in increasingly digital financial activities.
Removing Geographical Barriers to Access

A primary objective of digital banks is to eliminate the physical barriers that have historically excluded individuals from accessing essential banking services. By operating entirely online, these banks provide seamless access from any location with internet connectivity. This is particularly advantageous for individuals residing in remote areas where physical bank branches may be hours away, thereby saving them considerable time and travel expenses previously incurred to conduct financial transactions.
Facilitating Digital Economy Participation

Bank Negara Malaysia, in 2022, highlighted that digital banks are expected to significantly aid unbanked and underbanked populations in participating more actively in the digital economy. The inherent nature of digital banking, which allows for all transactions to be managed via a smart device, aligns with the growing trend of cashless transactions and digital engagement, making financial services more inclusive for a broader segment of the population.
Offering Competitive Financial Products

While the provided information does not detail specific outreach strategies, the general offerings of digital banks suggest a model that could appeal to these demographics. For instance, GX Bank, AEON Bank, and Boost Bank have introduced competitive interest rates on savings, some reaching up to 3.88 per cent annually, and cashback incentives. These attractive rates and savings features, coupled with the convenience of "savings jars" for goal-oriented saving, are designed to encourage financial inclusion and better money management for all users.

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How do digital banks aim to serve the unbanked and underbanked populations?

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