SINGAPORE (THE BUSINESS TIMES) - Two Singapore-based consortia are among the five winners that bagged Malaysia's digital bank licences.
According to Bank Negara Malaysia on April 29, a consortium led by GXS Bank and Kuok Brothers, and another consortium led by Sea Limited and YTL Digital Capital, were among the five winners.
GXS Bank is a Grab-Singtel consortium, while the New York Stock Exchange-listed Sea Limited is the parent company of e-commerce platform Shopee. Both companies secured Singapore digital bank licences in 2020.
The other three winners are a consortium of e-wallet company Boost Holdings and RHB Bank, a consortium of Aeon Financial Service, Aeon Credit Service and United States-listed fintech firm MoneyLion, as well as a consortium led by KAF Investment Bank. Boost is a unit of Malaysia's telecommunications group Axiata, while MoneyLion is co-founded by Malaysian Foong Chee Mun.
There were a total of 29 consortia that applied for the digital bank licences in June 2020.
In a media statement, Bank Negara Malaysia said the assessment criteria cover the character and integrity of applicants, nature and sufficiency of financial resources, soundness and feasibility of business and technology plans, as well as the ability to address financial inclusion gaps.
The successful applicants will undergo a period of operational readiness that will be validated by Bank Negara Malaysia through an audit before they can commence operations. This process may take between 12 and 24 months.
With the award of digital bank licences, the central bank's governor Nor Shamsiah expects the digital bank operators to further advance the country's financial inclusion.
"By adopting digital technology more widely for everyday transactions, we can significantly increase opportunities for our society to participate in the economy - by overcoming geographical barriers, reducing transaction costs and promoting better financial management," she said in a media statement.
"Digital banks can help individuals and businesses gain better access to more personalised solutions backed by data analytics. As businesses move online, digital banking also provides a safer and a more convenient way to transact," she added.
