AEON Bank Receives Approval To Become Malaysia’s First Islamic Digital Bank

Alex Cheong Pui Yin

9th January 2024 - 3 min read

AEON Bank (M) Bhd is set to become Malaysia’s first Islamic digital bank, following its success in obtaining approval from Bank Negara Malaysia (BNM) and the Ministry of Finance to commence its digital banking operations within the country.

According to AEON Bank – which is a subsidiary of Japan’s AEON Financial Services Co Ltd and an associate company of AEON Credit Service (M) Bhd – the approval was granted following BNM’s validation of its operational readiness, and a phased rollout has been planned for its app in the first half of 2024. To kickstart the process, AEON Bank will begin with an exclusive beta testing phase that involves AEON Group employees.

“As we prepare to introduce our app, we recognise the importance of gathering insights and feedback from users to refine and optimise the app. By initially offering access to a select group of beta testers, we aim to collaboratively fine-tune the app to ensure it meets the expectations of our wider user base upon full release,” said chief executive officer of AEON Bank, Raja Teh Maimunah.

Raja Teh Maimunah also emphasised that the new digital bank will seek to advance the promotion of financial inclusion and Islamic banking. “As part of one of Malaysia’s most recognised retail household brands, we aim to provide accessible, inclusive, and shariah-compliant digital banking solutions to our AEON Group of customers as well as to all Malaysians. It is our intent to empower our communities with access to digital financial services which are simplified, safe, and secure,” she said.

Similarly, managing director of AEON Credit, Daisuke Maeda said that this achievement marks a significant leap in redefining the financial services provided by AEON Group, and also reaffirms its commitment to support financial inclusivity. To note, AEON Credit is one of the leading non-bank financial institutions in Malaysia that can assist individuals who are unable to get funding via traditional banking services.

“As AEON Group Malaysia celebrates 40 years of trust, we see AEON Bank as an opportunity to provide more to our loyal customers and business partners who have been the bedrock of our success,” said Maeda.

For context, AEON Bank was formerly known as ACS Digital Berhad, which secured one of the five digital banking licenses offered by BNM through a consortium consisting of AEON Financial Service Co Ltd, AEON Credit Service, and MoneyLion Inc. MoneyLion eventually pulled out from the consortium, however, leaving AEON Financial Service Co Ltd and AEON Credit Service to make up ACS Digital with an equal shareholding of 50% respectively.

Aside from AEON Bank, Boost and RHB Bank had also recently announced that it received approval from BNM and the MOF for its digital bank, Boost Bank by Axiata and RHB, to commence operations with effect from 15 January 2024. Meanwhile, GXBank by the Grab-led consortium has successfully launched its digital bank app back in November 2023.

(Source: AEON Bank)

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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