Ewallet vs NeoBank vs DigitalBank

BigBay Goes NeoBank
In the best tradition of growth hacking, AirAsia's BigPay is going neobank not by licensing but by practice [by our estimation]. In a video, Group CEO Tony Fernandes mentions as soon as BigPay receives approval from regulator BNM to increase the maximum ewallet deposit to MYR 50K [USD 12K], AirAsia will pay staff salaries into BigPay. This will be a major boost for BigPay and the ewallet ecosystem. Imagine other ewallets that have a substantial local parent following suit:
  • Boost - Axiata & Digi payrolls go into Boost. [Vcash folds into Boost?]
  • TnG - CIMB & TnG payrolls go into TnG [CIMB unlikely due to firewall]
  • MAE - Maybank payroll goes into MAE [maybe start with IT staff]

Long Term Stock Exchange
The SEC has just approved (Friday, 10 May 2019) a new stock exchange: the Long Term Stock Exchange (LTSE). LTSE differs from standard stock exchanges in the following:
  • Long term investors get more voting rights than short term ones
  • CEO salary must not be linked to stock prices
  • Longer reporting cycles (eg. half yearly vs quarterly)
Next in the pipeline awaiting SEC approval is MEMX, a new stock exchange that is led by brokerages and banks in a promise to simplify listings and reduce costs.

Comparison of Banking Types
How to distinguish neobanks, digital banks, virtual banks and traditional banks? Virtual banks are another name for digital banks. Neobanks are more nimble and easier to start than digital banks because neobanks do not require a banking license, they leverage on the backend and license of an existing bank. Digital banks differ from traditional banks by having no branches. The table below provides a fuller comparison.

Ewallet NeoBank DigitalBank StandardBank
Onboarding Instant eKYC eKYC Counter
Deposit Yes Yes Yes Yes
Withdrawals No Yes Yes Yes
Transfers Yes Yes Yes Yes
ATM No Yes Yes Yes
Lending No Yes Yes Yes
DebitCard Maybe Yes Yes Yes
CreditCard No Maybe Yes Yes
MaxDeposit Small Medium Large VeryLarge
BankingLicense No No Yes Yes
DepositInsured No Maybe Yes Yes
Branches No No No Yes
Humans F2F No No Maybe Yes
OnlinePortal No Maybe Yes Yes
AppBased Yes Yes Yes Optional
EasilyBanned Yes Yes Maybe No
DataSlurping Yes Yes Yes No
InterestBearing No Low Higher Low
Characteristic Speed Agility Reach Stability
TargetMarket Unbanked, Youngsters, Digerati Underbanked, SME/SMB, Young AdultsMedium Sized Businesses, Niche Markets Institutions, Large Businesses, General Public