Five New Digital Banks Gain Licenses
On 16 May 2025, Bank Negara Malaysia (BNM) awarded digital banking licenses to five applicants, comprising three local consortia and two international fintech ventures. These “Digital Full Bank” (DFB) licenses mark a pivotal step in Malaysia’s strategy to broaden financial inclusion, especially for small and medium enterprises (SMEs), rural populations, and the unbanked.
License Winners and Their Focus
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MySME Bank Consortium (led by a local SME platform)
Target: Working capital and invoice financing for micro-enterprises
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Green Finance Digital (Malaysian-Japanese joint venture)
Target: Green loans and ESG-linked deposits for sustainable projects
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RuralConnect Bank (homegrown consortium)
Target: Zero-fee saving and remittance services for underserved regions
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Globex Fintech (Singapore-based)
Target: Cross-border remittance and multi-currency e-wallets
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Astra Digital Finance (US-based fintech)
Target: AI-powered SME lending and credit scoring
Each licensee must meet capital and governance requirements and is expected to commence operations by Q2 2026, after satisfying technical readiness and cybersecurity audits.
Driving Financial Inclusion and SME Growth
BNM Governor Tan Sri Nor Shamsiah Mohd Yunus emphasized the licensing role in closing Malaysia’s financial inclusion gap:
“These new digital banks will leverage technology to reach Malaysians—especially small businesses and rural communities—who have long been underserved by traditional banking.”
Key inclusion targets:
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Increase SME credit penetration from 45% to 60% by end-2027
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Raise rural adult bank account ownership above 90% by 2028
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Boost digital payment usage in the agriculture and fisheries sectors by 50%
Regulatory Safeguards and Consumer Protection
To ensure stability and trust, BNM has imposed strict conditions:
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Minimum Capital Requirement: RM 100 million paid-up capital
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Cybersecurity Standards: Mandatory compliance with the National Cyber Security Framework
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Consumer Data Rights: Clear opt-in/opt-out mechanisms and data portability rules
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Risk Management: Periodic stress tests and resilience drills
These safeguards aim to balance innovation with prudence, mitigating potential operational and systemic risks.
Next Steps for Industry and Consumers
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Licensees will finalize their digital platforms and complete user-acceptance testing in the coming months.
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SMEs and consumers can expect beta launches by late 2025, with pilot programs in selected states.
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Existing banks are likely to enhance their own digital offerings in response, fostering healthy competition.
Industry observers note that Malaysia’s move dovetails with regional trends—Singapore, Thailand, and the Philippines are similarly expanding their digital banking ecosystems.
Outlook: A New Era in Malaysian Banking
With these five digital banks on the horizon, Malaysia is charting a fresh course toward greater inclusion, faster credit delivery, and expanded digital services. As the 2026 launch approaches, businesses and consumers alike should prepare to explore new financial products tailored to their needs.
Call to Action:
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