29th April 2022 - 2 min read
Bank Negara Malaysia (BNM) has announced the five successful applicants for the digital banking license, with three licenses given under the Financial Services Act 2013 and another two under the Islamic Financial Services Act 2013.
Under the Financial Services Act 2013, the three successful applicants are:
Under the Islamic Financial Services Act 2013, the two successful applicants are:
According to BNM, these five successful applicants will undergo a period of operational readiness that will be validated by BNM through an audit before they can commence operations – and this process may take between 12 to 24 months.
“Digital banks are expected to further advance financial inclusion. By adopting digital technology more widely for everyday transactions, we can significantly increase opportunities for our society to participate in the economy – by overcoming geographical barriers, reducing transaction costs and promoting better financial management,” said BNM Governor Tan Sri Nor Shamsiah Mohd Yunus.
In total, there were 29 applicants for the five digital banking licenses to be issued by BNM. Interestingly, three out of the five successful applicants are majority-owned by Malaysians, which are Boost & RHB, Sea Limited & YTL Digital Capital, and KAF Investment Bank.
The successful applicants were selected through an exhaustive assessment criteria laid out by BNM, covering nine factors across four main points: Prudential, Technology, Financial Inclusion, and Best Interest of Malaysia.
The selection process saw four levels of assessment due to the strict governance and evaluation procedures from BNM. The final recommendations to the Minister of Finance were endorsed by BNM’s Management Committee.
Subscribe to our exclusive weekly newsletter and we’ll bring you the week’s highlights of financial news, expert tips, guides, and the latest credit card and e-wallet deals.
Stay tuned for what’s to come next in the personal finance world