31 Jul 2023
Financial Institutions
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19 Nov 2019
Digital-only banking is a banking business in the modern age that can be categorized into two types based on business models, which aim at different groups of customers: First, digital-only banks which focus on servicing low to medium income earners who face certain limitations in accessing financial services (Digital-Only A). Second, digital-only banks with customers overlapping with those of commercial banks, and the digital-only banks aim to become an alternative for customers to expedite transactions with lower transaction costs (Digital-Only B).... Read more
7 May 2019
In 2018, the number of ATMs and electronic devices used in the commercial banking system contracted 0.98 percent YoY, against the 5.17 percent growth reported for 2017, representing the first shrinkage in 35 years. Such a contraction was consistent with the substantial increase in the number of financial transactions made via digital channels. This suggests a decline in the need for the use of cash and represents a challenge to the ATM business of commercial banks in terms of its cost-effectiveness. In addition, commercial banks are increasingly turning to digital channels because the costs in offering financial services through ATMs are 30 times higher than those provided via digital channels. The cost-effectiveness of the ATM business is based on monetary and non-monetary factors, namely customer satisfaction and convenience in using financial services. ... Read more