Boost Bank Receives Green Light From BNM To Commence Operations

Alex Cheong Pui Yin

9th January 2024 - 3 min read

RHB Bank and Boost announced that they have received official approval from Bank Negara Malaysia (BNM) and the Ministry of Finance (MOF) to commence operations as a digital bank with effect from 15 January 2024. The upcoming digital bank will be formally known as Boost Bank by Axiata and RHB.

In a statement, the Boost-RHB Digital Bank consortium highlighted that Boost Bank is the first “primarily Malaysian-owned digital bank” to commence operations within the country, with Boost and RHB Bank holding 60% and 40% equity in the consortium, respectively. The consortium also said that it will begin alpha-testing its digital bank app soon, involving internal employees, family, friends, and a selected group of customers who will receive an invitation.

“In the lead-up to the public launch, the digital bank will progressively enhance its product propositions and refine the user experience to pave the way for a new era of embedded finance tailored to meet the diverse needs of all Malaysians,” Boost and RHB further shared.

The consortium also revealed that Boost Bank will led by chief executive officer Fozia Amanulla, who is to be joined by a team of professionals with relevant expertise, including technology, information security, product, risk & compliance.

“Rooted in the fundamental belief that everyone deserves a bright financial future, we are determined to propel Malaysia into an age of true financial inclusivity, by harnessing the untapped potential of embedded finance with our digital bank. Backed by the consortium’s combined ecosystem and wealth of data, we are uniquely positioned to offer embedded finance. I would like to thank the regulators for their continuous support and guidance,” said Amanulla in the statement.

Group chief executive officer of Boost, Sheyantha Abeykoon also expressed similar sentiments, stating that the landmark achievement is the result of a strategic partnership between a leading fintech and successful financial institution with substantial ecosystems. “It is a monumental triumph that underscores the capabilities of our pioneering team, that built the bank from scratch. Our people are at the core of our innovation, and I have every confidence that the team will make our digital bank vision into reality,” he said.

Meanwhile, the group managing director and chief executive officer of RHB Banking Group, Mohd Rashid Mohamad stressed that the conception of Boost Bank is set to foster a more inclusive financial ecosystem, catering especially to the needs of the underserved businesses and individuals in Malaysia.

The Boost-RHB Digital Bank consortium is one of the five successful licence applicants that were announced by BNM back in April 2022. Of the five, Grab’s consortium is the first to successfully launch its digital bank app in November 2023, with a debit card to come soon.

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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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