GXBank has emerged as the frontrunner in Malaysia’s digital banking sector, commanding the largest share of customer deposits with RM2.16 billion as of September 2024.
The Edge, citing a recent RAM Ratings report, noted that GXBank also leads in total assets among the country’s three operational digital banks, reaching RM2.4 billion over the same period.
In comparison, AEON Bank reported RM711 million in assets and RM339 million in deposits as of November 2024, while Boost Bank’s assets stood at RM399 million with deposits of RM204 million as of end-September 2024.
Despite these figures, RAM Ratings highlighted that the combined assets of the three digital banks still account for less than 1% of Malaysia’s total banking sector, underscoring their relatively small footprint in the broader financial landscape.
All three banks remain in the red, which RAM said is expected at this early stage, largely due to high startup costs and income streams that rely heavily on low-risk investments.
GXBank posted a pre-tax loss of RM189 million for the nine-month period ending December 2024, while AEON Bank and Boost Bank recorded losses of RM91 million and RM43 million respectively over similar reporting periods.
GXBank, which went live in December 2023, saw rapid uptake in its first year, largely driven by aggressive promotional campaigns.
These efforts have since been scaled back as the bank shifts focus towards long-term growth.
AEON Bank and Boost Bank, both of which launched in mid-2024, have also introduced high-interest savings offerings to attract deposits.
However, Boost Bank has taken a more measured approach.
According to RAM, its cost of funds stands at 1.7%, notably lower than the 3% reported by its peers — a key advantage that could improve margins over time.
The ability to retain digitally savvy and price-sensitive users remains one of the biggest challenges for digital banks, particularly as they look to grow while keeping customer acquisition costs in check.
RAM noted that all three banks received capital injections from shareholders in 2024 to support ongoing expansion.
Each bank has also rolled out lending products. Boost Bank is targeting small and medium enterprises, leveraging RM120 million in loans transferred from its Boost Credit business.
GXBank has begun offering fast-approval loans to both retail and business users, though business financing is currently limited to merchants within the Grab ecosystem.
AEON Bank, meanwhile, has just launched its personal financing offering this month.
As of February 2025, three out of five licensed digital banks in Malaysia have gone live.
KAF Digital Bank and RYT Bank are yet to launch, although RYT has already begun marketing efforts.
With a regulatory cap of RM3 billion in assets for the first three to five years of operation, these new digital players are unlikely to pose any immediate threat to traditional banks.
Featured image credit: Edited from Freepik
