Bank Negara Malaysia (BNM), the country’s central bank, has awarded digital banking licenses to five applicants, including a consortium led by Sea Group and YTL Digital Capital.
A consortium comprising Boost Holdings and RHB Bank plus another led by GXS Bank and Kuok Brothers have also received licenses under the Financial Services Act 2013.
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GXS Bank, a joint venture between Grab and Singtel, will hold a 55.45% stake in the proposed Malaysia digital bank. The group will hire more than 200 people across verticals, including product and design, data, technology, risk, and compliance.
Meanwhile, two consortiums – one involving Aeon Financial Service, Aeon Credit Service, and MoneyLion; the other led by KAF Investment Bank – have received licenses under the Islamic Financial Services Act 2013.
The new license holders were chosen from 29 applications. Three of the five consortiums are majority-owned by Malaysians, according to a BNM statement.
See also: How Gojek-backed Bank Jago is taking on Sea, Akulaku’s digibanks
Before they start operations, the successful applicants will undergo a period of operational readiness, which will be vetted by BNM through an audit. The process may take between 12 months to 24 months.
“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,” Tan Sri Nor Shamsiah, BNM’s governor, said in the statement.
Editing by Deepti Sri and Eileen C. Ang
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