This is especially so in developed markets where competition in incumbent banks was already fierce. Moreover, the flight to quality during the crisis has benefitted established banks, in terms of access to funding, says the credit rating agency.
The ongoing Covid-19 pandemic, which has brought about social-distancing measures and lockdowns globally, has accelerated the shift towards digital services, including banking.
According to a report by Fitch Ratings on August 17, aspiring digital banks looking to break into the Asian markets may “struggle” to attain the critical mass necessary to reach business viability amid the economic shock brought about by the pandemic.
