40 Parties Eyeing Malaysia’s Digital Banking License

40 Parties Eyeing Malaysia’s Digital Banking License

by February 11, 2021

During a virtual press conference today, Bank Negara Malaysia governor, Datuk Nor Shamsiah Mohd Yunus said to reporters that over 40 parties have registered their interest with the central bank to bid for a digital banking license.

Malaysia’s digital banking framework was issued in December 2020 and it is anticipated that up to 5 licenses will be issued by the first quarter of 2022. The new framework which has undergone a 6 months consultation period was seen as a positive move by the industry players, with some describing it as “best of breed” in balancing the need for innovation and financial stability.

The central bank has set June 30, 2021 as the deadline for submission of applications for the digital banking licences.

She further added that during the press conference,

“In our policy paper, we have mentioned that the digital bank are expected to introduce innovative application of technology that can contribute to the financial wellbeing of Malaysians, in particular emphasis given to ability and prospect of applicants to address the financial needs of the underserved and unserved customers segments,”