Kuala lumpur: Malaysia’s digital banking journey is making good progress and has great promise in addressing unserved and underserved segments, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour. In an exclusive interview with Bernama, the central bank governor said licensed digital banks have just begun operations, with most now focusing on growing their deposit base.

According to BERNAMA News Agency, Abdul Rasheed highlighted that deposits are seeing positive momentum, especially from underserved and unserved segments. However, he noted that many digital banks have yet to fully introduce their credit products to the broader public. Currently, these institutions are in a ‘foundational phase’ with asset size limitations, and the rollout of products has been gradual, initially targeting specific groups such as staff and their families.

Malaysia hosts five licensed digital banks: GXBank, AEON Bank, Boost Bank, KAF Digital Bank, and Ryt Bank. These banks received their licenses on April 29, 2022, from BNM following approval from the Ministry of Finance (MoF). Of these, four have started providing digital financial services, ranging from personal banking and business solutions to Islamic banking products.

GX Bank, led by Grab, was the pioneer in beginning operations on September 1, 2023. Subsequently, Boost Bank, a collaboration between Boost (Axiata) and RHB Banking Group, commenced on January 15, 2024, followed by AEON Bank, Malaysia’s first fully Islamic digital bank, which launched on May 26, 2024. MoF approved KAF Digital and RYT Bank to start their operations on December 20, 2024.

KAF Digital is backed by an Islamic digital bank consortium, including Carsome, MoneyMatch, Jirnexu, and StoreHub, with KAF Investment Bank Bhd leading. Ryt Bank, operated by YTL Digital Bank Bhd through a joint venture with YTL Digital Capital Sdn Bhd and Sea Ltd, offers services such as single-text input fund transfers and AI-driven financial insights.