On January 8, regulatory bodies greenlit two new digital banks to commence operations in Malaysia: Boost Bank, a venture by RHB Bank Bhd and Boost Holdings Sdn Bhd, and AEON Bank, linked to AEON Credit Service (M) Bhd. This approval signifies a robust expansion in the Malaysian fintech landscape, as these institutions prepare to offer innovative financial services.
Boost Bank Bhd, operating under a partnership structure of 40:60 between RHB and Boost Holdings, has officially received a digital bank license from the Ministry of Finance (MOF), effective from January 15. Following positive feedback from Bank Negara Malaysia, the nation’s central bank, the companies announced their readiness ahead of the expected timeline.
"Spearheading the team is Fozia Amanulla, who was recently appointed as the CEO of Boost Bank," the announcement disclosed. Fozia, along with her team, brings diverse expertise in technology, information security, product development, risk management, and compliance, leveraging the combined strengths of Boost’s fintech roots and RHB’s banking experience.
As part of the approval conditions, RHB and Boost Holdings must ensure sufficient funding to cover customer deposits and other financial obligations in the unlikely event of a wind-down. Addressing the strategic vision for the bank, Fozia stated, "Boost Bank is uniquely positioned to offer embedded finance," which refers to the seamless integration of financial services into non-financial platforms, positioning the bank to capitalize on the consortium’s ecosystem and extensive data resources.
In addition to Boost Bank’s entry into the digital banking sector, AEON Bank has also announced its launch, following the green light from Bank Negara Malaysia and the Ministry of Finance. Previously branded as ACS Digital Bhd, AEON Bank will operate as Malaysia’s first Islamic digital bank, marking a significant milestone in the country’s banking history.
Raja Teh Maimunah, the CEO of AEON Bank, emphasized the bank's commitment to providing inclusive and Shariah-compliant banking solutions. “As part of one of Malaysia’s most recognized retail household brands, we aim to provide accessible, inclusive, and shariah-compliant digital banking solutions to our AEON group of customers as well as to all Malaysians,” said Raja Teh.
This initiative will enable the AEON group to enhance its service offerings to retail and wholesale customers and ecosystem partners, which include auto dealers, merchants, suppliers, and tenants.
The journey for both banks will include preparatory testing phases: Boost Bank will initiate alpha testing with staff, family, friends, and select customers, while AEON Bank plans to start beta testing with its employees. Raja Teh conveyed optimism for a gradual rollout in the coming months, underscoring the group's aim to be a close ally in the financial journeys of its customers.
These two banks are among five that successfully secured digital banking licenses from Bank Negara Malaysia in April 2022. Notably, the first to launch was GXBank, a cooperation led by Grab-linked GXS Bank Pte Ltd and Kuok Brothers Sdn Bhd, which commenced operations on November 30 of the previous year. Other license holders include teams led by Sea Ltd and YTL Group, along with a consortium led by KAF Investment Bank Bhd, both focusing on Islamic digital banking initiatives.
As Malaysia witnesses this shift toward digital banking, the collaborative efforts of Boost Bank and AEON Bank highlighted the growing trend of financial technology integration in traditional banking frameworks. The success of these institutions could signal a broader transformation in how financial services are delivered in the region, potentially increasing competition and fueling innovation across the market.