Malaysia’s Boost Bank officially opens for business

Photo Credit: Boost

Boost Bank, a new Malaysian digital bank from local conglomerate Axiata Group and RHB Bank, has officially launched its app today. This makes it the country’s third digital bank, following Grab-backed GXBank and Islamic digibank Aeon Bank.

The new digibank is a 60:40 joint venture between Boost Holdings and RHB Bank. Axiata Digital Services owns 78% of Boost Holdings, while Singapore-based insurance group Great Eastern holds the remaining 22%.

Boost’s existing e-wallet service already serves over 11 million users in Malaysia and has 630,000 merchant touchpoints in the country. This will help facilitate its transition into a digital bank. Indeed, the e-wallet’s premium users can now transition their accounts to Boost Bank.

The digibank will also introduce special interest rates for users who transact with its launch partners, which include telecommunications firm CelcomDigi, hypermarket Mydin, as well as several other supermarket and retail chains.

Aside from the three digibanks that are now operating in Malaysia, two other consortia have the digibank license from Bank Negara Malaysia but have yet to launch. One consists of YTL Digital Capital and Sea Group, while the other is made up of KAF Investment Bank, Jirnexu, MoneyMatch, and Carsome.

Axiata Group recently reported a 13% year-on-year revenue increase to US$1.2 billion for the first quarter of FY2024, with a net profit of US$12.8 million despite higher foreign exchange losses and finance costs.

In Indonesia, Axiata Group and a consortium led by conglomerate Sinar Mas have recently signed a non-binding memorandum of understanding to explore a merger between their telcos XL Axiata and Smartfren.

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