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. 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 supports 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 have already launched, and more are expected to be launched by the end of 2025. fintech sector is anticipated to experience substantial growth in 2025. Increased digital adoption, supportive government regulations, and a growing talent pool will drive the growth in the industry.
Various trends are revolutionizing digital banking in Malaysia. These trends 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 meet their customers’ evolving needs better.
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). Boost Holdings owns 60% of this partnership, and RHB Bank Berhad owns 40% of the stake. It is one of Malaysia’s top 10 best digital banks for 2025.
Boost Holdings and RHB Bank Berhad consortium were one of five companies that received a digital banking license from Bank Negara Malaysia (BNM) in April 2022. After obtaining regulatory approval, it began its operations on January 15, 2024. Its goal is to create a more inclusive financial ecosystem focusing 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 2025.
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. It is one of Malaysia’s top 10 best digital banks for 2025.
The consortium aims to create a digital banking platform that offers innovative services to underbanked individuals and small to medium-sized enterprises (SMEs).
They plan 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 Sea Limited and YTL Corporation Berhad lead. The consortium received a digital banking license from Bank Negara Malaysia (BNM) in April 2022. The bank aims to provide financial solutions to Malaysians. It mainly targets underserved or underbanked, as well as micro, small, and medium enterprises (MSMEs). It is one of Malaysia’s top 10 best digital banks for 2025.
The consortium plans to launch the bank by the end of 2024. Sea Limited is the parent company of Shopee, an e-commerce platform, and Garena, a gaming platform. At the same time, 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 license in Malaysia. The consortium successfully secured the permit, but MoneyLion withdrew from the partnership. AEON Credit and AFS established ACS Digital Bhd, 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. It is one of Malaysia’s top 10 best digital banks for 2025.
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, including fundraising through private debt 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 various financial services, including investment banking, Islamic banking, money market activities, and fund management. Its services include money markets, fixed income, foreign exchange, derivatives, treasury, corporate finance, and corporate banking. It is one of Malaysia’s top 10 best digital banks for 2025.
KAF Investment Bank is mainly known for trading debt securities and money market instruments. Its subsidiaries include KAF Investment Funds, KFM Advisory Sdn Bhd, and KAF Trustee Berhad.
Conclusion
Malaysia is quickly adapting digital banking services. The sector is supported by high internet penetration, enabling 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. It is one of Malaysia’s top 10 best digital banks for 2025.
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.
FAQs
Which is the best virtual bank in Malaysia?
The top digital banks in Malaysia are GXBank, Boost, and AEON. All three are licensed by Bank Negara Malaysia, allowing them to offer a variety of banking services.
Which is the No. 1 bank in Malaysia?
Maybank is the number 1 bank in Malaysia, ranked by Malaysian banking groups, which are ranked by group asset size.
What is the future of digital banking in Malaysia?
The future of digital banking in Malaysia looks promising, with more people adopting it and the market expanding. The COVID-19 pandemic sped up the shift to digital banking, and the country’s tech-savvy population is fueling its growth.
