Table 1 Key Dimensions of Digital... | Emerald Publishing

Table 1

Key Dimensions of Digital Banking Regulation in Asia

Regulatory Aspect	Traditional Banking	Digital Banking	Regulatory Implications
Licensing Requirements	Comprehensive banking license	Often specialized digital bank license	Differential capital, fit-and-proper tests
Physical Presence	Branch network required	Typically branchless	Challenges in customer onboarding, verification
Technology Governance	Operational resilience	Emphasis on cybersecurity, AI ethics	Need for tech-specific regulatory expertise
Cross-Border Activities	Clearly demarcated jurisdictions	Potentially borderless services	Coordination between national regulators
Consumer Protection	Based on physical interactions	Digital-centric safeguards	Digital-centric safeguards

Regulatory Aspect	Traditional Banking	Digital Banking	Regulatory Implications
Licensing Requirements	Comprehensive banking license	Often specialized digital bank license	Differential capital, fit-and-proper tests
Physical Presence	Branch network required	Typically branchless	Challenges in customer onboarding, verification
Technology Governance	Operational resilience	Emphasis on cybersecurity, AI ethics	Need for tech-specific regulatory expertise
Cross-Border Activities	Clearly demarcated jurisdictions	Potentially borderless services	Coordination between national regulators
Consumer Protection	Based on physical interactions	Digital-centric safeguards	Digital-centric safeguards

Source: By author