KUALA LUMPUR: Axiata Group Bhd's unit Boost Holdings Sdn Bhd, in a consortium with RHB Bank Bhd, has secured the digital bank licence from Bank Negara Malaysia.
The consortium is one of the five successful applicants for the digital bank licence under the Financial Services Act 2013 (FSA).
The other recipients are a consortium of GXS Bank Pte Ltd and Kuok Brothers Sdn Bhd, and a consortium led by Sea Ltd and YTL Digital Capital Sdn Bhd have also secured the licence.
Meanwhile, the consortium of Aeon Financial Service Co Ltd, AEON Credit Service (M) Bhd and MoneyLion Inc, and the consortium led by KAF Investment Bank Sdn Bhd completed the list.
Bank Negara said three out of the five consortiums were majority-owned by Malaysians namely Boost Holdings and RHB Bank, Sea and YTL Digital Capital and KAF Investment Bank.
The central bank's governor Tan Sri Nor Shamsiah Mohd Yunus said digital banks were expected to further advance financial inclusion.
"By adopting digital technology more widely for everyday transactions, we can significantly increase opportunities for our society to participate in the economy - by overcoming geographical barriers, reducing transaction costs and promoting better financial management.
"Digital banks can help individuals and businesses gain better access to more personalised solutions backed by data analytics.
"As businesses move online, digital banking also provides a safer and a more convenient way to transact," she said in a statement today.
Following the announcement, the recipients will undergo a period of operational readiness that will be validated by Bank Negara through an audit before they can commence operations.
This process may take between 12 months and 24 months.
"In line with the five strategic thrusts stated in the Financial Sector Blueprint 2022-2026, Bank Negara will continue to work with the financial and fintech industries and relevant stakeholders to continuously enhance access to financial services throughout the country and across all segments of society," it said.