From Digital Banks to Crypto: Fintech to Watch in 2026

For years, the Malaysian fintech story was about anticipation, waiting for digital bank licenses, waiting for regulation, and waiting for mass adoption. According to the Malaysia Fintech Report 2025, the wait is over.

Vincent Fong, Chief Editor of Fintech News Malaysia, joins BFM to review a year where Malaysia moved from "promise to delivery."

We break down the explosive growth of DuitNow QR (where Malaysia ranks second only to China) and the 100 million+ transactions in the Buy Now Pay Later (BNPL) sector.

However, execution comes with costs. With digital banks posting significant initial losses, 2026 is set to be the year of "Economics and Cost Control."

We discuss:

• The "Execution" Pivot: How 2025 saw a surge in adoption, from RM967 million in cross-border transactions to the ubiquity of QR payments.

• Digital Bank Reality Check: Why heavy losses in the first year are typical for the sector (the J-curve effect) and why the 2026 strategy will shift toward lending, insurance products, and AI-driven cost efficiency.

• The End of the BNPL "Wild West": With SPayLater and Atome dominating the market, we discuss the implications of the Consumer Credit Act and the risks associated with a user base where 70% earn under RM5,000.

• Cross-Border Connectivity: The role of the Nexus scheme (connecting 5 central banks) and Alipay+ in driving regional payment integration.

• Open Finance: The next regulatory frontier. Vincent explains how API-based data aggregation will finally allow consumers to view their entire financial life on a single dashboard, provided incumbents get on board.

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