Axiata Expects to Be Operating a Digital Bank by 2021by Vincent Fong February 24, 2020
Axiata revealed at its group financial briefing results that it is currently in talks with 11 parties to bid for Malaysia’s virtual banking license. Malaysia is looking to issue up 5 licenses for virtual banks as outlined in the recently published draft framework.
Its newly appointed deputy chief executive officer, Datuk Mohd Izzaddin Idris, expects to establish a virtual bank by the second half of 2021 if they among the five to receive a virtual banking license.
The group is no stranger to digital financial services, under its subsidiary Axiata Digital, they operate the popular e-wallet brand Boost and also a micro-lending platform named Aspirasi which claims to have disbursed over RM 50 Million worth of microloans to 9,000 merchants.
If the group were to continue that the track that is laid out by its Aspirasi brand which focused primarily on micro-entrepreneurs, it will certainly meet Bank Negara Malaysia emphasis for the new virtual banks to serve and underserved market.
Besides Axiata, Grab was reported to be eyeing the same license Malaysia, in Fintech News Malaysia’s earlier interview with GrabPay’s Managing Director, Ooi Ooi Huey Tyng, she said that Grab is definitely keen to consider for a virtual banking license in Malaysia.
Gaming giant Razer, has also expressed interest in the Malaysian market stating that Malaysia’s large youth demographic is a very appealing market for the company.
Both Grab and Razer have already submitted their bid for a digital banking license in Singapore.
Image Credit: Boost Facebook Page