KAF Digital Bank Bhd, Malaysia’s Islamic digital bank backed by KAF Investment Bank, has received formal approval from Bank Negara Malaysia (BNM) to commence operations starting today.

Approval Follows Successful Pilot Phase

The approval comes after KAF Digital Bank completed its Perintis Phase, a controlled testing period involving selected trialists that ran earlier in the year.

According to KAF, feedback from this pilot phase played a key role in refining the bank’s offerings and improving the user experience before its public launch.

Shariah-Compliant Products and Services

KAF Digital Bank aims to deliver a full suite of Shariah-compliant financial products and services, leveraging advanced technology to improve accessibility and convenience.

At launch, its offerings will include savings accounts, virtual debit cards, and payment solutions designed to meet the needs of Malaysians..

Part of Malaysia’s Licensed Digital Bank Line-up

KAF Digital Bank is one of five licensed digital banks in Malaysia, awarded licences by BNM on 29 April 2022 following Ministry of Finance (MOF) approval.

The other four licensed players are GX Bank, led by Grab, which launched on 1 September 2023; Boost Bank, a venture between Axiata Group Bhd and RHB Bank Bhd, which launched on 15 January 2024; AEON Bank, Malaysia’s first fully Islamic digital bank, which began operations on 26 May 2024; and Ryt Bank, a joint venture between Sea Ltd and YTL Power International Bhd’s wholly owned YTL Digital Capital Sdn Bhd, which has yet to announce its launch date.

A Growing Digital Banking Landscape

With its official launch, KAF Digital Bank joins the growing digital banking ecosystem in Malaysia, offering more choices to consumers and businesses looking for accessible, technology-driven, and Shariah-compliant financial solutions.

BNM’s licensing framework for digital banks aims to promote financial inclusion, particularly for underserved and unserved segments, while ensuring compliance with regulatory requirements.

You can download the KAF Bank app on the Apple Appstore or Google Play 

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• Approval
• BNM
• Digital Bank
• KAF
• KAF Digital Bank
• KAF Investment Bank