KUALA LUMPUR (April 29): Bank Negara Malaysia (BNM) has announced the five successful applicants for the digital bank licences as approved by the Minister of Finance (MoF).

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

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

The following 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.

Three out of the five consortiums are majority-owned by Malaysians namely Boost Holdings and RHB Bank, Sea and YTL Digital Capital and KAF Investment Bank, said BNM in a statement on Friday.

Sources:
https://www.theedgemarkets.com/article/flas...sea-aeon-credit
https://fintechnews.my/31002/virtual-bankin...laysia-winners/

This post has been edited by Kadaj: Apr 29 2022, 03:31 PM

I wonder when will we start seeing the digital banks in market, can't wait for it!

Net-net, it is always good for consumers, because when these company first establish, they will throw out crazy promos to gain market share.

e.g. HK digital/virtual banks gave enticing deposit interest rate when they first started

Grabbank sounds good, how much will be their rate?

super high, if we use other countries' experience as barometer, up to 3x more in certain cases.
reasons they can do that:
1. Throwing huge initial capital to gain market share
2. Lower operating costs (no physical location/staff)

Hong Kong's first digital bank offers 6% rate for deposits that dwarfs HSBC's
"ZA began a pilot last month for the city's first digital-only bank. It's offering the 6 per cent rate for three-month Hong Kong dollar deposits capped at HK$200,000 (S$34,700)"
As comparison, Standard Chartered, HSBC and BOC Hong Kong Holdings pay 1.9 per cent to 2.3 per cent for the maturity
https://www.straitstimes.com/business/banki...at-dwarfs-hsbcs

wow, let it be

RAM Rating Sdn Bhd (RAM Ratings) has noted in a commentary that although digital banks may spur financial innovation and accelerate the digital transformation of the Malaysian banking landscape, their impact will be limited in the next three years. This is due to the restriction on the asset size of the digital banks, which is curbed at less than RM2 billion, which account for only 0.3% of the industry asset.

“Bank Negara Malaysia (BNM) also requires digital banks to focus on financial inclusion to address the market gaps in the underserved and unserved segments. This will temper the head-on competition with traditional banks in the mass retail and SME markets,” said RAM Rating’s co-head of Financial Institution Ratings, Sophia Lee, in a statement released in conjunction with the commentary.

The digital banks may also see their impact and profitability constrained during the early years due to the substantial expenses in developing their ecosystem. There is also a need to spend on occasional promotional rates so that they can grow amidst the competitive business environment.

Digital Banks Will Spur Financial Innovation, But Impact Limited In Next Three Years

This post has been edited by Kadaj: Jul 28 2020, 04:11 PM

ManagePay Systems Berhad (MPay) has formed a joint venture company with Singapore-based Passion Venture Capital Pte Ltd (PVC) with the aim of foraying into digital banking in Malaysia.

In a filing with Bursa Malaysia, MPay said that its subsidiary ManagePay Services had entered into the joint venture agreement with PVC to set up a company that will be applying for one of Bank Negara Malaysia’s digital banking licenses. MPay will hold 51% in the joint venture company, with PVC holding the remaining shares.

With this move, MPay will join contenders such as Sunway, Axiata Group, Razer, Grab, AirAsia, and AMTD in the race for one of Bank Negara’s digital banking licenses.

MPay Forms Joint Venture With Singaporean VC Firm, Aims For Digital Banking Licence

Johor state government? What are they planning to do for a digital bank?

no news dy seems this malaysia digital bank thingy

Hope they will issue the license within this year.

Two months ago, Bank Negara announced on its website that given the disruptions caused by the Covid-19 outbreak, it was extending the April 30 deadline for the industry to provide feedback on its proposed digital banking licensing framework to June 30. The central bank had initially expected to finalise its policy document by the first half of this year, after which it was to open applications for the licences.

“We understand that, most likely, the [Bank Negara] guidelines will be finalised by the end of this year, after which the central bank will open the application process early next year,” says Kelvin Lee, financial services assurance partner at PwC Malaysia.
https://www.theedgemarkets.com/article/inte...-licences-picks

after finalised, they will then open the application processes....how long do you think that will takes?

just an added note from the above article...

According to Lee, the companies remain keen on a licence, but the banks are less so. “I haven’t heard of anyone who has dropped out. The interest is still there, I would say.

But, for the banks, we gather that they are not so keen on the licences because they feel that the Bank Negara guidelines didn’t give them regulatory arbitrage.

So, I think, a lot of the banks feel that it may not be worthwhile to apply for a licence.”


googled and found this too,...

Digital Banking: Malaysian banks at a crossroads
https://www.pwc.com/my/en/assets/publicatio...-crossroads.pdf

https://www.pwc.com/my/en/publications/2020...ross-roads.html

This post has been edited by MUM: Aug 3 2020, 10:20 AM


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I believe before our BNM roll out digital bank license, they must first solve the pre-requisite. KYC a.k.a know your customer profiling.

MCMC has yet to finalize and approve an official guideline for that so until then, digital banking license and companies application are far from finalizing.

Currently banks already can perform digital banking service like maybank2u for a long time. They don't need the digital banking license.

The new digital banking license is for new players to join in banking service. The number of licenses issue is limited, there will be fierce competition on bidding for sure.

the policy already out https://www.bnm.gov.my/index.php?ch=57&pg=144&ac=963&bb=file

BigPay Considers Options For Malaysian Digital Bank Licence, Expands To Singapore

AirAsia-backed BigPay has revealed that it is considering different options to bid for a digital banking licence in Malaysia, including teaming up with a strategic partner for the effort or making the bid on its own. This comes alongside the announcement of BigPay’s expansion into Singapore, bringing its payments and remittance services to the neighbouring country.

https://ringgitplus.com/en/blog/e-wallet/bi...7A0Wdu1dvXtgsOU

Banks can expect stiff competition from new digital banks and fintech companies, says Deloitte

https://www.theedgemarkets.com/article/bank...s-says-deloitte

KUALA LUMPUR (Oct 20): Banking institutions can expect stiffer competition from new digital banks and fintech companies as increasing complexities of customer expectations, interconnectedness of societies and technological innovations have brought disruption to the banking industry.

AirAsia’s BigPay will soon offer loans with instant approval

BigPay, the digital prepaid card from AirAsia, is among 8 companies that have gotten the green light from Malaysia’s Ministry of Housing and Local Government (KPKT) to provide online loans. The approval for BigPay Later Sdn Bhd was announced by Zuraida Kamaruddin on Friday during the online money lending guidelines virtual session.

AirAsia Group CEO, Tony Fernandes had posted on Instagram that BigPay has received provisional license for lending and users will soon be able to apply for fast loans at low interest rates. He told Bernama that the approval was a lifeline to BigPay and he hoped that it would provide people the chance to do business and have a decent life.

He added that the financing will be available to the B40 group and the aim is to try to get loans approved within minutes. Although B40 would be the biggest beneficiary from the approval, the financing will also be made available to other groups as well.

Apart from BigPay, the Ministry has also approved seven other providers namely Axiata Digital Capital Sdn Bhd, Grabfin Operations (M) Sdn Bhd, GHL Payments Sdn Bhd, Presto Credit Sdn Bhd, JCL Credit Leasing Sdn Bhd, Fortune Tree Capital Sdn Bhd and Hoop Fintech Sdn Bhd. With the implementation of online money lending by licensed community credit companies under KPKT, the Ministry hopes to modernise the money lending industry to create a more conducive, secure, controlled and orderly money lending business environment.

Source

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BP is one step closer to become digital bank.
Looking forward to earn interest for saving in BP.

Why approval came from Malaysia’s Ministry of Housing and Local Government (KPKT) and not from BNM or MOF?

easier to get approval?...just like those licensed money lenders?
thus will Airasia's Bigpay charge the are the same rate as those money lenders?

According to Ministry of Housing and Local Government (Malaysia):