Categories: Finance

Five successful applicants for the digital bank licences

(adsbygoogle = window.adsbygoogle || []).push({});

Bank Negara Malaysia says five applicants, out of 29, have successfully obtained approval for the digital bank licences from the Minister of Finance Malaysia.

The following applicants are to be licensed under the Financial Services Act 2013 (FSA):

  • a consortium of Boost Holdings Sdn Bhd and RHB Bank Berhad;
  • a consortium led by GXS Bank Pte Ltd and Kuok Brothers Sdn. Bhd; and
  • a consortium led by Sea Limited and YTL Digital Capital Sdn Bhd.

While the remaining two applicants are to be licensed under the Islamic Financial Services Act 2013 (IFSA):

  • a consortium of AEON Financial Service Co. Ltd, AEON Credit Service (M) Bhd and MoneyLion Inc.; and
  • a consortium led by KAF Investment Bank Sdn Bhd.

Bank Negara says three out of the five consortiums are majority-owned by Malaysians namely Boost Holdings and RHB Bank Bhd, Sea Limited and YTL Digital Capital Sdn Bhd. and KAF Investment Bank Sdn. Bhd.

“Throughout the assessment process, BNM instituted strict governance and evaluation procedures to ensure robust, objective and consistent assessments across all 29 applications received.

“Four levels of assessment were carried out, supported by a cross-functional technical team, a review team and internal independent observers from BNM’s risk and legal departments.

“The final recommendations to the Minister were deliberated and endorsed by BNM’s Management Committee,” BNM says in a media release published on its official portal.

Digital banks and financial inclusion

Bank Negara Malaysia Governor Tan Sri Nor Shamsiah says, “Digital banks are expected to further advance financial inclusion.

“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.”

“Digital banks can help individuals and businesses gain better access to more personalised solutions backed by data analytics. As businesses move online, digital banking also provides a safer and a more convenient way to transact,” she adds.

They will undergo a period of operational readiness that will be validated by BNM through an audit before they can commence operations. This process may take between 12 to 24 months.

(adsbygoogle = window.adsbygoogle || []).push({});
(adsbygoogle = window.adsbygoogle || []).push({});


Recent Posts

A Long Week In Politics For Anwar Ends Well

A massive divide between the races in the voting patterns that have left Anwar with…

2 days ago

Anwar Is Fighting Rising Prices With Targeted Subsidies

Nevertheless, Anwar has said he plans to introduce a programme that will include targeted subsidies…

1 week ago

APEC: China’s Return To The Global Supply Chains

The question to ask is whether there are one too many free trade agreements around…

2 weeks ago

RCEP Came At A Good Time

After the upsets with the South China Sea disputes, we now have certain normalcy, which…

2 weeks ago

US Popularity In The Asean region

In Vietnam, the sentiments can be different because they see the Chinese encroachments in the…

3 weeks ago

New Views On Asean Plus Three and China

Asean plus three is still important for the Asean but with China's dominance, so to…

3 weeks ago