Technology-driven advancements have revolutionised the financial landscape in Malaysia in recent years.
Recognising the potential of digital banks to address financial inclusion gaps, Bank Negara Malaysia (BNM) developed a comprehensive framework aimed at increasing access to financial services, particularly for underserved communities.
As part of this initiative, BNM issued five digital banking licenses in 2022, marking a milestone in the country’s financial sector transformation.
Among the recipients of these coveted licenses, Boost emerged as a homegrown success story, evolving from a popular e-wallet service into a fully-fledged digital bank.
With the strong backing of Axiata Group, Boost has seamlessly leveraged its existing ecosystem to deliver a new level of financial services, providing Malaysians with accessible, user-friendly banking solutions.
Journey from E-Wallet to Malaysia’s First Homegrown Digital Bank
Boost, initially an e-wallet operated by telco giant Axiata Group, has undergone a remarkable transformation.
Now a digital bank, it’s well-positioned to address gaps in financial inclusion, especially for underserved populations.
Group CEO Sheyantha Abeykoon explains that the transition from e-wallet to digital bank was a logical next step in the company’s mission to serve the underserved.
“From the start, our vision has always been much broader – from our early days offering QR code payments, we recognised the potential to provide more than just transactional services,”
he said in an interview with Fintech News Malaysia.
Over the years, Boost has diversified its offerings, expanding beyond payments to include AI-powered micro-financing solutions, cross-border payments, and a full suite of merchant services.
This evolution has led to the creation of a holistic fintech ecosystem designed to empower MSMEs (micro, small, and medium enterprises), addressing their unique financial needs.
Boost Bank Offers Banking for All, Starting from RM1
Boost Bank had launched a fully digital banking experience for Malaysians in June this year.
During the launch of Boost Bank, Prime Minister Datuk Seri Anwar Ibrahim expressed his support, emphasizing the importance of the bank in enhancing digital and financial literacy in Malaysia.
He also stated that he expects to see significant progress over the next six months, which will be presented to the cabinet.
One of Boost Bank’s standout features is its innovative onboarding process.
Malaysians without a traditional bank account can open a Boost Bank account directly through the e-wallet app with just RM1.
“This enhances financial accessibility significantly, ensuring that no one is left behind in the digital age. The goal is to close the financial inclusion gap by simplifying banking for Malaysians who may not have access to traditional financial services,”
Sheyantha remarked.
The bank offers comprehensive services, including savings, payments, and soon, lending solutions—all through a seamless, embedded banking experience.
Boost Bank is also set to expand its services to offer SME financing, empowering small businesses with easy access to credit through digital channels.
Partnerships and Strategic Collaborations
Boost has amplified its reach and impact through strategic partnerships, such as its collaborations with MYDIN and CelcomDigi.
These partnerships enable Boost to deliver a digital banking experience that is not only convenient but also deeply integrated into Malaysians’ everyday lives.
“We have recently also expanded these partnerships to Sabah and Sarawak, and launched our new debit card to further meet the evolving needs of our users,”
said Abeykoon.
In line with expanding its ecosystem, Boost recently introduced a debit card in collaboration with Payments Network Malaysia (PayNet) and Mastercard.
This marks a step forward in providing customers with more options for managing their finances digitally.
The Boost app has also undergone key upgrades, offering enhanced wallet integration, effortless account registration, and flexible top-up options to ensure a smooth user experience.
Expanding Boost’s Horizons in Southeast Asia
While Boost’s current focus remains on Malaysia and Indonesia, the company is actively exploring opportunities to expand its fintech model into other Southeast Asian markets, such as Cambodia.
This expansion is part of Boost’s broader goal of becoming a regional leader in digital financial services, offering seamless and innovative solutions that cater to the unique needs of various markets across the region.
Boost and MDEC: Driving Malaysia’s Digital Economy Forward
Abeykoon acknowledged the vital role of the Malaysia Digital Economy Corporation (MDEC) in supporting Boost’s journey.
An agency under the purview of the Ministry of Digital, MDEC has been leading the digital transformation of the economy since 1996.
MDEC has been instrumental in fostering a robust digital ecosystem through its initiatives, which promote digital adoption and collaboration.
“Their efforts in promoting digital adoption and facilitating collaboration have been invaluable, helping us achieve our goals and further our mission of financial inclusion,”
he says.
Through the Malaysia Digital (MD) national strategic initiative and efforts such as the Gateway, Amplify, Invest, Nurture (GAIN) programme and Founders Centre of Excellence (FOX) program, MDEC has been instrumental in attracting digital talents and investments to Malaysia.
He added that Boost’s inclusion in the FOX program is a testament to the company’s growth potential and the bright future ahead.
“This recognition strengthens our resolve to continue leading in the digital financial services space and driving positive change in the communities we serve,”
Abeykoon says.
Much of MDEC’s main objectives are embodied in the Malaysia Digital (MD) national strategic initiative by the government to attract digital companies and talent to Malaysia, and nurture and support them.
The MD initiative focuses on nine promoted sectors, including digital finance, digital trade, digital content, and digital tourism, all of which are critical to Malaysia’s broader goal of becoming a digital-first economy.
These programmes and initiatives help fintech companies like Boost scale their operations and continue innovating within the space.
Boost Bank Aims to Build a More Inclusive Financial Future
By leveraging its established ecosystem, forming strategic partnerships, and aligning with national initiatives like those led by MDEC, Boost is well on its way to closing the financial inclusion gap and delivering accessible, innovative banking solutions to Malaysians.
As a homegrown digital bank, Boost is poised to play a central role in driving financial inclusion and fostering the growth of the digital economy in Malaysia.
Technology-based advancements within the finance sector have seen much progress, so much so that Bank Negara has developed an entire framework for digital banks in order to facilitate the provision of banking products and services, primarily to the underserved markets.
Boost, which started out as an e-wallet operated by telco player Axiata Group and has since evolved to become a digital bank and more – is well positioned to leverage on these gaps.
Group CEO Sheyantha Abeykoon says the company’s transformation from an e-wallet brand to a regional fintech leader with a robust suite of services represents a natural progression of the group’s mission of serving the underserved.
Over time, the company has expanded beyond payments, integrating AI-based micro- financing solutions, cross-border payments, and a comprehensive suite of merchant solutions.
This has resulted in a holistic fintech ecosystem that is designed to empower and meet the needs of MSMEs.
More recently, the group launched Boost Bank and with this, it brings financial services directly to the fingertips of millions of Malaysians via a seamless, embedded banking experience.
Boost Bank affords its users a comprehensive digital banking experience that includes savings, payments, and soon – lending solutions.
“The goal is to close the financial inclusion gap by simplifying banking for Malaysians who may not have access to traditional financial services,”
Abeykoon says.
According to Digital Minister Gobind Singh Deo, the lack of access to financing remains a major issue for micro-entrepreneurs and small and medium enterprises in the country.
In May, officials at the Small and Medium Enterprises Association pointed out the main challenges that SMEs faced when they sought funding included timeliness, availability of collateral, margin and additional costs such as fees and interest.
Meanwhile, Abeykoon says the group’s strategic partnerships further amplify the value it delivers to its customers as the collaborations enable the group to offer a digital banking experience that is both, convenient and deeply integrated into everyday routines.
He says several key upgrades have been done to the Boost app, resulting in an effortless account registration process, enhanced wallet integration and flexible top-up options, among others.
MDEC offers various programmes for Malaysia Digital status companies. Apply for Malaysia Digital status here.
