Moody - Latest News Update, Information, Photos & Videos on Moody at Lokmat Times

New Delhi [India], March 4 Banks in Southeast Asia have made significant progress on their digital transformation journey, and incumbents that are willing to invest in technology are well placed to compete with fintechs, global ratings agency Moody's said in a report.The region has nurtured a number of high-profile fintechs but in most markets, their penetration in financial services remains low, Moody's said.Tighter funding condition for fintechs will curb their near-term expansion. "Regulators will not shield banks from new entrants, but will also prevent the latter from forming closed loop ecosystems," it added.The terms -- traditional banks and incumbent banks -- are often used interchangeably. These banking institutions have physical branches and are regulated by the Reserve Bank of India. The most common facilities that incumbent banks offer are deposit and lending products.The report said regulations were established to encourage innovation, but they also prevented the formation of closed-loop ecosystems. "Regulators encourage financial innovation and do not intend to shield banks from new entrants. At the same time, they seek to prevent the new entrants from using their captive customer bases to develop closed-loop ecosystems," it added.The report said the emergence of national retail payment systems tilts the competitive landscape in favour of incumbents.Moody's said fintech growth had been uneven and would likely moderate. Many were able to build up huge customer bases, though their service offerings are largely limited to digital payments and expansion into other financial services remains modest, the report said, adding fintechs remain loss-making and tight funding conditions will curb their near-term growth.Moody's report said incumbent banks have successfully established a strong digital presence. Their digital transformation has resulted in widespread customer adoption of digital channels and improved product quality.The competitive landscape, the report said, would continue to evolve but incumbent banks have demonstrated the ability to keep up with the changes, especially the larger ones that have the scale to invest and develop digital capabilities.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

MoodyFOLLOW

Moody, Latest News

Chennai, May 11 A combination of factors like the move towards decarbonization, fuel diversification, geopolitical situations resulting in ... ...

New Delhi, May 7 Former Sunrisers Hyderabad coach Tom Moody said that cricket has moved on from Royal ... ...

New Delhi, April 30 Former Australian all-rounder Tom Moody reckoned that Delhi Capitals (DC) made a tactical mistake ... ...

Jerusalem, April 16 Israeli Prime Minister Benjamin Netanyahu and Finance Minister Bezalel Smotrich issued a joint statement, asserting ... ...

Tel Aviv [Israel], April 15 : Thousands rally against the judicial overhaul on Saturday evening, the day after leading ... ...

London, March 21 Rating agency Moody's has cut the outlook on UBS Group's debt to negative following its ... ...

New York, March 15 Ratings giant Moody's has warned of more pain ahead for the US banking system ... ...

New Delhi [India], March 4 Banks in Southeast Asia have made significant progress on their digital transformation journey, ... ...