Malaysia grants digital banking license to five operators
Malaysia awarded digital banking licenses to five companies out of a total 29 which have applied for them, the country’s central bank said in a statement released on April 29.
Three licenses for conventional finances were granted to a consortium of RHB Bank and Boost Holdings, a fintech subsidiary of Axiata Group; to a consortium led by GXS Bank, the digital banking joint venture of e-ecommerce firm Grab and Singapore telecom Singtel, and Malaysian conglomerate Kuok Group; and a consortium led by Singaporean e-commerce and gaming firm Sea and YTL Digital Capital, a fintech subsidiary of Malaysian infrastructure conglomerate YTL Corporation.
Two Islamic digital banking licenses were awarded to a joint venture of Japan’s AEON Financial Service, AEON Credit Service Malaysia and MoneyLion, a Malaysia-founded, US-based financial app; and to a consortium led by Kuala Lumpur-based KAF Investment Bank.
Pilot period of up to two years
The central bank said that the license winners now must undergo a “period of operational readiness” which will be audited before they can commence operations – a process expected to take between 12 to 24 months.
“Digital banks can help individuals and businesses gain better access to more personalised solutions backed by data analytics,” central bank governor Nor Shamsiah said in the statement.
“As businesses move online, digital banking also provides a safer and a more convenient way to transact,” she added.
Detailed assessments “in the best interest of Malaysia”
The license recipients have been chosen based on assessments of the robustness of their underlying technologies, the soundness and the feasibility of their business plans, their ability to provide financial services to under- and unserved target groups and their contribution to the stability of the financial system “in the best interest of Malaysia,” the governor added.
The digital banks are expected to decrease the number of underbanked and unbanked people in Malaysia, where nearly all adults among the country’s 32-million population are smartphone users, but by far not all have access to financial services or even have a bank account.
Malaysia awarded digital banking licenses to five companies out of a total 29 which have applied for them, the country’s central bank said in a statement released on April 29. Three licenses for conventional finances were granted to a consortium of RHB Bank and Boost Holdings, a fintech subsidiary of Axiata Group; to a consortium led by GXS Bank, the digital banking joint venture of e-ecommerce firm Grab and Singapore telecom Singtel, and Malaysian conglomerate Kuok Group; and a consortium led by Singaporean e-commerce and gaming firm Sea and YTL Digital Capital, a fintech subsidiary of Malaysian infrastructure conglomerate YTL...
Malaysia awarded digital banking licenses to five companies out of a total 29 which have applied for them, the country’s central bank said in a statement released on April 29.
Three licenses for conventional finances were granted to a consortium of RHB Bank and Boost Holdings, a fintech subsidiary of Axiata Group; to a consortium led by GXS Bank, the digital banking joint venture of e-ecommerce firm Grab and Singapore telecom Singtel, and Malaysian conglomerate Kuok Group; and a consortium led by Singaporean e-commerce and gaming firm Sea and YTL Digital Capital, a fintech subsidiary of Malaysian infrastructure conglomerate YTL Corporation.
Two Islamic digital banking licenses were awarded to a joint venture of Japan’s AEON Financial Service, AEON Credit Service Malaysia and MoneyLion, a Malaysia-founded, US-based financial app; and to a consortium led by Kuala Lumpur-based KAF Investment Bank.
Pilot period of up to two years
The central bank said that the license winners now must undergo a “period of operational readiness” which will be audited before they can commence operations – a process expected to take between 12 to 24 months.
“Digital banks can help individuals and businesses gain better access to more personalised solutions backed by data analytics,” central bank governor Nor Shamsiah said in the statement.
“As businesses move online, digital banking also provides a safer and a more convenient way to transact,” she added.
Detailed assessments “in the best interest of Malaysia”
The license recipients have been chosen based on assessments of the robustness of their underlying technologies, the soundness and the feasibility of their business plans, their ability to provide financial services to under- and unserved target groups and their contribution to the stability of the financial system “in the best interest of Malaysia,” the governor added.
The digital banks are expected to decrease the number of underbanked and unbanked people in Malaysia, where nearly all adults among the country’s 32-million population are smartphone users, but by far not all have access to financial services or even have a bank account.
