The launch of two remaining digital banks in Malaysia has been delayed due to technical issues, as reported by The Star. Bank Negara Malaysia (BNM) granted digital bank licences to five applicants, but only three have commenced their services so far.
The delayed digital banks are a consortium of Sea Ltd and YTL Digital Capital Sdn Bhd, and another led by KAF Investment Bank, along with Carsome, MoneyMatch and Jirnexu. Allegedly, BNM has not approved their launch because their “digital channels” are incomplete, while a source cited poor planning on their IT end as the reason for the delay.
The Star’s source also indicated that both digital banks face similar technical issues to those encountered by the earlier launched banks. However, the pace at which these issues are being resolved varies.
Despite these setbacks, BNM’s “review team” expects both banks will be ready to go live by the end of this year. However, their respective launches may be delayed further if the two digital banks request for further time extension to prepare their systems.
Currently, Malaysia has three operational digital banks: GXBank, Aeon Bank, and Boost Bank. Among the five licence holders, only Aeon Bank and the consortium lead by KAF Investment Bank offer Shariah-compliant digital banking products and services.
(Source: The Star)
