KUALA LUMPUR: The three digital banks in Malaysia have been widening financial access to the underserved while offering the convenience of banking transactions at any time.
GX Bank Bhd, AEON Bank (M) Bhd and Boost Bank Bhd were three of five digital banking licences issued by Bank Negara Malaysia (BNM) in 2022.
Since they began operations, e-payment transactions have also chalked up a phenomenal increase within a relatively short time beating expectations and projections.
In the process, they have increased the adoption of digital payments while regulatory implementations enhanced financial inclusion.
They add a new dimension to banking, not only in widening accessibility clientele but also raising financial literacy, particularly for the underserved communities.
GXBank, a subsidiary of GXS Bank Pte Ltd — a digital bank joint venture between Grab Holdings Ltd, Singapore Telecommunications Ltd and a consortium of Malaysian investors, including the Kuok Group — was launched at the end of 2023.
This was followed by the 2024 launches of AEON Bank, jointly owned by AEON Financial Service Ltd and AEON Credit Service (M) Bhd, subsidiaries of Japan's AEON Group, and Boost Bank, a homegrown digital bank established by Axiata and RHB.
The other two digital banks — one a partnership between Sea Ltd and YTL Digital Capital Sdn Bhd, and the other headed by KAF Investment Bank — have not yet gone live due to technical issues.
On Nov 6, 2024, the Association of Banks in Malaysia (ABM) welcomed GXBank and Boost Bank as new members. ABM said this milestone reflected its commitment to creating an inclusive banking environment that blends digital innovation with traditional values.
Executive director Dr Amina Kayani said the addition of the three digital banks signifies a unified approach between the 10 conventional banking groups and three digital banks.
She noted the collaboration strengthens the industry’s adaptability, resilience and focuses on meeting diverse societal needs.
According to Bain & Company, the digital financial services sector continues its upward trajectory, with digital banks in Malaysia offering compelling features and ease of access, driving growth.
This means the prognosis for digital banks looks bright as digital payment transactions are set to touch US$172 billion (RM765.4 billion) this year, up five per cent from last year.
Through these banks, Prime Minister Datuk Seri Anwar Ibrahim's expectations for digital banking were realised when the target of 400 e-payment transactions per capita was achieved sooner than the original 2026 timeline.
As of Oct 1, 2024, 405 digital payment transactions were recorded, exceeding the goal outlined in the Financial Sector Blueprint. - Bernama
