Multiple companies vying for digital banking licence in Malaysia

digital banking is something Malaysia is looking into and many companies are hoping to get the licence to operate one in Malaysia. Thus far, the companies that are interested seem to include Grab, Razer, AirAsia, Axiata, CIMB, Ant Financial, and possibly Maybank.

According to Reuters, sources claim that these companies are already exploring the possibility of going into digital banking. Last year, Bank Negara Malaysia (BNM) declared that it will issue up to five licences that will allow a company to run a digital bank. Also, it was confirmed that this digital bank can either be a conventional bank or Islamic bank.

The licensing framework for this will not be completed until the end of June, which means no company can get a licence yet. But it's entirely possible for companies to start planning for it, especially since there are already some requirements announced in advance. Case in point, the draft proposal currently has a clause stating that digital banks must provide product and services to “under-served and unserved segments”. These banks must also be able to maintain an investment capital of RM100 million and eventually ramp up to RM300 million.

It's still early day so it's still hard for the general public to understand what differentiates a digital bank from a regular one. Hopefully, we'll know more about this in the coming months. To those of you who have knowledge or expertise in this area, do let us know by commenting on our Facebook page! And remember to stay tuned to Prosyscom.tech for more tech news.