Aeon to proceed with Malaysia digibank despite MoneyLion exit

Japanese conglomerate Aeon runs a chain of shopping malls in Malaysia, targeting suburban residential neighborhoods nationwide. / Photo credit: Wikimedia Commons

US-based neobank MoneyLion is no longer partnering with Japanese conglomerate Aeon to launch a digital Islamic bank in Malaysia.

A representative from Aeon told Tech in Asia that MoneyLion decided to pull out of the consortium to focus on its US operations.

This means Aeon, which runs a chain of supermarkets and shopping malls in Malaysia, will launch the digital bank with its two subsidiaries.

The group originally consisted of Aeon Credit, Aeon Financial Services and MoneyLion. The Aeon units each hold a 45% stake in the consortium while the remaining 10% was owned by MoneyLion.

Aeon did not respond to queries on whether it was actively seeking a new partner following MoneyLion’s exit. For now, the Japanese firm said it’s still on track to launch the digital bank, which was scheduled within 24 months from the approval date of its license from the Ministry of Finance.

The Aeon-led consortium bagged Malaysia’s first digital banking license on April 29, 2022. This means the official launch should be in April 2024, pending approval from Bank Negara Malaysia (BNM), the country’s central bank.

Steering Aeon’s digital bank is Raja Teh Maimunah Abdul Aziz, the former managing director of Ambank’s wholesale banking arm. She was appointed Aeon’s digital bank chief executive officer in November 2022.

The Aeon-led consortium is one of the five groups that got approval to launch digibanks in Malaysia. Three consortiums are set to run conventional digital banks, namely: Boost and RHB; Grab-Singtel and Kuok Brothers; and YTL Digital Capital and Sea Group.

The remaining two will operate Islamic digital banks. Aside from Aeon’s group, a consortium made up of KAF Investment Bank, Carsome, Jirnexu, and MoneyMatch also holds this license.

See also: Malaysia’s digibank race heats up: 3 things to watch