Digital banking in Malaysia off to promising start, says BNM Governor

MALAYSIA’S digital banking sector is showing encouraging early signs in its mission to serve the unserved and underserved, according to Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour.

In an exclusive interview with Bernama, the central bank governor said that licensed digital banks had only recently begun operations, with most now concentrating on building their deposit base.

"We have been seeing very good progress with deposits coming in from both underserved and unserved segments,” he said.

However, on the financing side, Abdul Rasheed noted that most digital banks had yet to fully roll out their credit offerings to the wider public.

"In fact, the digital banks are still at the 'foundational phase', where they are subject to asset size limitations. It's still too early to come up with an assessment.

“Products are gradually being introduced, with some being offered mainly to target groups, such as staff and families, before the full public rollout.

"We will consider all the key data from the digital banks to come up with an assessment as to whether digital banks meet our ultimate aim of serving the underserved and unserved," he said.

Malaysia currently has five licensed digital banks: GXBank, AEON Bank, Boost Bank, KAF Digital Bank and Ryt Bank. The licences were awarded on 29 April 2022 by BNM, following approval from the Ministry of Finance.

Of the five, four have launched services to the public, offering a range of digital financial solutions including personal banking, business services and Islamic banking products.

GXBank, led by Grab, was the first to commence operations on 1 September 2023. Boost Bank, a collaboration between Axiata’s Boost and RHB Banking Group, followed on 15 January 2024. AEON Bank, Malaysia’s first fully Islamic digital bank, officially began operations on 26 May 2024.

KAF Digital and Ryt Bank were granted approval to begin operations on 20 December 2024.

KAF Digital operates under a consortium led by KAF Investment Bank Bhd and includes Carsome, MoneyMatch, Jirnexu and StoreHub. Meanwhile, Ryt Bank is the product of a joint venture between YTL Digital Capital Sdn Bhd and Sea Ltd, offering services such as simplified fund transfers and AI-driven financial insights. - August 3, 2025