Bank Negara Malaysia to Issue Five Digital Banking Licenses Spurring a Digital Banking Revolution

Digital banking services have been evolving in Malaysia for the last two decades and progress in the industry is about to take another leap. For the first time in Malaysia, Bank Negara Malaysia (BNM) has plans to issue five digital banking licences in line with its stated objective of leveraging digital financial services particularly to drive financial inclusion and serve the 8% of the population that remains unbanked and underserved. According to BNM, digital banking solutions can help in bringing this ratio down to 5%.

Calling for potential digital licensors in December 2019 through the release of an Exposure Draft on Licensing Framework for Digital Banks, the deadline for the digital banking framework has now been e...