Five consortia obtain digital banking licenses

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Bank Negara Malaysia, in a statement, said Boost-RHB Bank, GXS Bank-Kuok Brothers and Sea Ltd-YTL Digital Capital were licensed under the Financial Services Act 2013 (FSA). -AFP photo

KUALA LUMPUR (April 29): Five consortiums, namely Boost Holdings Bhd-RHB Bank Bhd, GXS Bank Pte Ltd-Kuok Brothers Sdn Bhd, Sea Ltd-YTL Digital Capital Sdn Bhd, AEON Financial Service Co Ltd-AEON Credit Service (M ) Bhd -MoneyLion Inc and KAF Investment Bank Sdn Bhd Win Malaysia’s Digital Banking Licenses.

In a statement released today, Bank Negara Malaysia (BNM) said that Boost-RHB Bank, GXS Bank-Kuok Brothers and Sea Ltd-YTL Digital Capital are licensed under the Financial Services Act 2013 (FSA) .

Meanwhile, the AEON Financial Service-AEON Credit-MoneyLion consortium and KAF Investment Bank have obtained a license under the Islamic Financial Services Act (IFSA) of 2013.

The central bank said three of the five consortia were majority Malaysian-owned, namely Boost Holdings and RHB Bank, Sea Ltd and YTL Digital Capital as well as KAF Investment Bank.

The BNM said successful applicants will undergo a period of operational readiness which will be validated by the central bank through an audit before they can begin operations. The exercise can take 12 to 24 months.

Governor Tan Sri Nor Shamsiah Mohd Yunus said digital banks should further advance financial inclusion and could significantly increase opportunities for society to participate in the economy by overcoming geographic barriers, reducing transaction costs and promoting better financial management.

“Digital banks can help individuals and businesses gain better access to more personalized solutions backed by data analytics. As businesses move online, digital banking also offers a safer and more convenient way to conduct transactions,” she added.

BNM said a total of 29 applications received for the digital banking licenses were carefully assessed in accordance with FSA Section 10(1) and IFSA1, which require the central bank to consider all Schedule 5 factors of laws and other relevant policies. terms.

Evaluation criteria cover the character and integrity of applicants, the nature and sufficiency of financial resources, the soundness and feasibility of business and technology plans, and the ability to meaningfully address inclusion gaps. financial.

The central bank said applications were assessed on their individual merits as well as against other applications based on consistent assessments of each evaluation criterion.

This horizontal review is based on the evaluation criteria applied to all applicants to determine the relative strength of each application and identify successful candidates, he added.

BNM noted that four levels of assessment were conducted, supported by a cross-functional technical team, a review team and independent internal observers from BNM’s risk and legal departments.

The final recommendations forwarded to Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz were deliberated and approved by the BNM’s Board of Directors. – Bernama






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