Summary
Malaysia's banking sector held broadly steady through the second quarter of 2023 even as the wider economy slowed sharply on high base-year effects and softer merchandise exports. Loan portfolios across the country's top banks expanded on the back of mortgage and hire-purchase financing, while deposits grew at a more modest pace, setting the stage for a closer look at how individual banks are managing profitability under rising funding costs.
Open banking is still an early-stage story in Malaysia, with Maybank and CIMB among the first to launch developer portals giving third parties access to banking APIs for building new financial products. Fintech partnerships are accelerating in parallel, pairing established banks with ride-hailing, personal finance, and other platforms to reach customers through channels beyond the traditional branch.
Individual banks are also carving out distinct strategies: from fully digital account-opening journeys and gamified debit card experiences to dedicated customer-experience labs running usability testing at scale, and fintech innovation labs exploring new digital partnerships. Rising interest rates, deposit competition, and slowing loan growth are testing net interest margins across the sector, even as asset quality and cost discipline vary widely from bank to bank.
- Banks covered: Maybank, CIMB, Public Bank, RHB, Hong Leong Bank, AmBank, Affin Bank, Alliance Bank, and Bank Islam
- Covers open banking APIs, fintech partnerships, and digital account-opening innovations
Which Malaysian banks are best positioned to protect margins as digital competition and rising funding costs squeeze the sector at once?
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