Boost Bank and AEON Bank: Two New Digital Banks Launch in Malaysia
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Loading... - Chang Jiandan
- 08 Jul 2024
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Malaysia's central bank, Bank Negara, has given the green light to two new digital banks: Boost Bank and AEON Bank. Boost Bank is a joint venture between fintech company Boost and RHB Banking Group, while AEON Bank is a subsidiary of AEON Financial Service.
Digital Banking Expansion in Malaysia
In 2022, Bank Negara granted digital banking licenses to five applicants. However, only Grab's GXBank began operations in late 2023. The other successful applicants, including a consortium led by Sea Limited and YTL Digital Capital Sdn Bhd, and another led by KAF Investment Bank Sdn. Bhd., have yet to launch their digital banks.
GXBank has already amassed over 100,000 customers and plans to introduce a debit card in January 2024.
AEON Bank: Malaysia's First Islamic Digital Bank
AEON Bank stands out as Malaysia's first Islamic digital bank, offering Sharia-compliant financial services. Raja Teh Maimunah, CEO of AEON Bank, emphasized the bank's commitment to financial inclusion and Islamic banking principles. The bank aims to provide accessible and secure digital banking solutions to AEON Group customers and all Malaysians.
AEON Bank's phased rollout will start in the first half of 2024, beginning with beta testing among AEON employees. This approach will allow the bank to refine its app based on user feedback.
Boost Bank: Combining Fintech with Traditional Banking
Boost Bank takes a traditional finance approach to digital banking. It is part of the Boost fintech company, a subsidiary of Axiata, and RHB Bank. Boost holds 60% equity, and RHB owns 40%.
Vivek Sood, group CEO of Axiata Group Berhad, highlighted the aim to broaden digital banking options and foster financial inclusion. Boost Bank will undergo alpha testing with internal employees and a select group of customers before its public launch.
Fozia Amanulla, CEO of Boost Bank, expressed a commitment to financial inclusivity, aiming to leverage embedded finance to create a bright financial future for all Malaysians.
Commitment to Financial Inclusion
Bank Negara awarded the digital bank licenses based on a comprehensive assessment, including applicants' character, financial resources, business and technology plans, and ability to address financial inclusion gaps.
AEON Bank and Boost Bank have pledged to provide financial services to traditionally underserved individuals and small businesses. They aim to promote financial literacy and education, empowering their customers to make informed financial decisions.
With these new digital banks, Malaysia is set to unlock the benefits of greater financial inclusion, ensuring that more people have access to essential banking services.
