Axiata Group is set to launch its digital bank by the end of this year with the goal to turn profitable in the next three to four years according to a Bernama report.
Boost, the fintech arm of Axiata Group, and RHB Banking Group had snagged one of the five digital bank licenses issued by Bank Negara Malaysia (BNM). Boost has a majority stake of 60% while RHB owns the remaining 40% in the digital bank.
Axiata’s CEO and Managing Director Vivek Sood said that the initial capital commitment for the digital bank would be around RM100 million.
The digital bank plans to gradually offer large product offerings by end 2023. This includes deposits for current account and saving account (CASA) account holders as well as insurance products and other financial products.
Axiata is said to be working closely with BNM for the necessary approvals and have placed robust cybersecurity measures to ensure privacy and prevent data breaches.
“Why we are optimistic about the outcome of the digital bank comes from the fact that there are many things we have already done which need to be translated to the bank. For example, we have done around one and a half billion in loans to micro, small, and medium enterprises (MSMEs) within our existing business within Boost Credit.
We also have a large number of a half million active customers on a monthly basis which could potentially be the customers of the digital bank from day one. We are preparing our plans and would require the central bank’s necessary approvals before we can launch it,”
said Vivek at a virtual media conference after the group’s annual general meeting.
