Malaysia is experiencing a significant digital transformation. The finance industry in Malaysia is also going through a major transformation, which is creating opportunities for innovation and growth. The rise of digital banking in Malaysia is disrupting traditional models of banking. It offers greater convenience, accessibility, and competition for Malaysians. Bank Negara Malaysia’s (BNM) licensing initiative is supporting this digital transformation. BNM is providing a foundation for new players and innovative solutions to reshape the financial landscape in Malaysia.
Digital banking is rapidly expanding in Malaysia. Many digital banks are already launched and more are expected to be launched by the end of 2024. The fintech sector is anticipated to experience substantial growth in 2024. The growth in the sector will be driven by increased digital adoption, supportive government regulations, and a growing talent pool.
Various trends are revolutionizing digital banking in Malaysia. These trends include a focus on Environmental, Social, and Governance (ESG) compliance, as customers. Regulatory bodies in Malaysia are also paying more attention to these factors. Additionally, traditional banks need to modernize their core systems and infrastructure to better meet the evolving needs of their customers.
List Of Digital Banks In Malaysia 2025
Here is the list of digital banks that are transforming the banking sector in Malaysia for 2025.
Table of Contents
Boost Bank
The Boost-RHB Digital Bank Consortium is a partnership between Boost Holdings Sdn. Bhd. (BHSB). In this partnership, Boost Holdings owns 60% and RHB Bank Berhad owns 40% of the stake.
Boost Holdings and RHB Bank Berhad consortium was one of five companies which received a digital banking licence from Bank Negara Malaysia (BNM) in April 2022. It began its operations on January 15, 2024, after obtaining regulatory approval. Its goal is to create a more inclusive financial ecosystem, which focuses on underserved businesses and individuals.
Fozia Amanulla serves as the CEO of Boost Bank. Currently, the consortium is in the alpha-testing phase, which involves internal employees, family, friends and a select group of customers. RHB has invested RM8.6 million in Boost Bank to support operational and capital expenses for the first half of 2024.
GXS Bank
GXS Bank Pte. Ltd. and Kuok Brothers Sdn. Bhd. are part of a consortium. They are working together to establish a digital bank in Malaysia. GXS Bank is a joint venture between Grab Holdings Ltd and Singapore Telecommunications Ltd (Singtel), while Kuok Brothers is a Malaysian investor linked to the Kuok Group.
The consortium aims to create a digital banking platform that offers innovative services to underbanked individuals and small to medium-sized enterprises (SMEs).
To achieve this, they are planning to use technology to make financial services more accessible, relevant and affordable. Their initiatives include launching micro-insurance products in partnership with Zurich General Insurance Malaysia Bhd and Zurich Life Insurance Malaysia Bhd, which are targeting lower-income groups. Additionally, GXS Bank will introduce business financing products by leveraging its partners’ networks. The bank will use data from Kuok Group companies to assess lending to distributors in the fast-moving consumer goods (FMCG) sector.
YTL-Sea Digital Bank
The YTL-Sea Digital Bank is a digital banking project in Malaysia, which is led by Sea Limited and YTL Corporation Berhad. The consortium received a digital banking licence from Bank Negara Malaysia (BNM) in April 2022. The bank aims to provide financial solutions to Malaysians. It is especially targeting those who are underserved or underbanked, as well as to micro, small and medium enterprises (MSMEs).
The consortium plans to launch the bank by the end of 2024. Sea Limited is the parent company of Shopee, which is an e-commerce platform and Garena, which is a gaming platform, while YTL Corporation Berhad is a prominent conglomerate in Malaysia.
AEON Financial Service Co., Ltd. (AFS)
AEON Credit Service (M) Berhad (AEON Credit), and MoneyLion Inc. initially formed a consortium to obtain a digital banking licence in Malaysia. The consortium successfully secured the licence but MoneyLion later withdrew from the partnership. AEON Credit and AFS established ACS Digital Bhd, which is an Islamic digital bank. They took equal ownership of 50% each.
AEON Financial Service Co., Ltd. (AFS) provides various financial services. Its services include credit card issuance, banking, leasing and life insurance.
KAF Investment Bank
KAF Investment Bank Berhad is formerly known as KAF Discounts Berhad. It is a prominent investment bank in Malaysia. It is recognized for its expertise in dealing with money market instruments and trading debt securities. The bank offers capital market advisory services, which include fundraising through private debt securities and equity-linked securities. It is supported by a strong advisory team that provides comprehensive and innovative financial solutions.
KAF Investment Bank is a part of KAF Group of Companies. It offers a wide range of financial services, including investment banking, Islamic banking, money market activities and fund management. Its services comprise money market, fixed income, foreign exchange, derivatives, treasury, corporate finance and corporate banking.
KAF Investment Bank is particularly known for its trading of debt securities and money market instruments. Its subsidiaries include KAF Investment Funds Berhad, KFM Advisory Sdn Bhd and KAF Trustee Berhad.
Conclusion
Malaysia is quickly adapting digital banking services. The sector is supported by high internet penetration that enables citizens to access new banking technologies. The net interest income for digital banks is estimated to reach US$2.28 billion in 2024, with a compound annual growth rate (CAGR) of 4.86% expected from 2024 to 2029, ultimately it will reach US$2.89 billion by 2029.
Digital banks may gain an advantage over traditional banks in cross-selling services in Malaysia, thanks to their formation by consortia of companies from various industries. This evolving landscape highlights the growing importance of digital banking in Malaysia’s financial sector.
