Malaysia’s financial landscape underwent a profound transformation in 2025, moving decisively from policy discussions to live implementation.
It was a year where regulatory frameworks, infrastructure upgrades, and new market entrants began to interact in meaningful, real-world ways, reshaping how Malaysians engage with money.
From the launch of the Digital Asset Innovation Hub to the completion of its digital banking rollout, the nation demonstrated a coordinated push toward a more inclusive, efficient, and technologically advanced financial ecosystem.
PM Anwar Kicks Off The Digital Asset Innovation Hub
Bank Negara Malaysia (BNM) officially launched the Digital Asset Innovation Hub during the Sasana Symposium 2025 in June, marking a critical pivot in Malaysia’s financial roadmap.
Officiated by Prime Minister Datuk Seri Anwar Ibrahim, the hub is designed as a collaborative “controlled” environment for applicants to “test new ideas and provide input fine-tune regulatory and security frameworks”.
The initiative specifically targets two “high-potential” areas, which are programmable money and a ringgit-backed stablecoin.
BNM Governor Datuk Seri Abdul Rasheed Ghaffour emphasised that this is part of a “whole-of-nation” approach, including through panels, fireside chats and workshops.
Alongside the Hub, BNM has accelerated its policy framework with three major papers released this year: the discussion paper on AI, asset tokenisation and open finance.
Consumer Credit Bill 2025 For Greater BNPL Regulation
In July 2025, the Dewan Rakyat passed the Consumer Credit Bill 2025, aimed at greater regulation for regulating non-bank credit and service providers, including the booming “Buy Now, Pay Later” (BNPL) industry.
The Consumer Credit Commission (CCC) will introduce a licensing and registration guideline for credit entities which are not under formal supervision, including BNPL providers.
A key requirement is that BNPL providers conduct mandatory financial assessments to verify a borrower’s ability to repay before granting credit, a move designed to elevate consumer protection.
Deputy Finance Minister Lim Hui Ying announced that providers are now legally obligated to clearly disclose all credit terms, including fees, charges, and repayment schedules. The law also mandates that BNPL companies report consumer credit data to credit reporting agencies (like CTOS) via a centralised database.
This ensures that BNPL debt is visible in a consumer’s overall credit history, preventing individuals from accumulating hidden debt across multiple platforms.
The market is currently dominated by three major players, Shopee’s SPayLater, Atome, and PayLater by Grab, which collectively hold over 90% of the market share.
Malaysia Is ASEAN’s First With 24/7 Real-Time Gross Settlement
In another of the top fintech Malaysia stories 2025, BNM launched RENTAS+ in October this year. This was a significant upgrade to its financial infrastructure, as it now enables continuous interbank fund transfers and settlements.
This makes Malaysia the first country in ASEAN to operate a Real-Time Gross Settlement (RTGS) system around the clock. The upgrade was driven by the rapid acceleration of the digital economy, with daily retail transaction volumes increasing by 49% since 2024.
The primary improvement in RENTAS+ is the elimination of settlement risks associated with the previous system. Previously, banks settled retail payments on a “deferred net basis,” which left gaps for potential credit and settlement risks from one bank to another.
The new system switches to a “gross basis” model, settling transactions immediately as they occur, i.e. when a customer finishes a transaction. To support this operation, BNM introduced a 24/7 automatic liquidity facility.
According to BNM Governor Dato’ Sri Abdul Rasheed Ghaffour, this launch is a key part of a multi-year modernisation plan intended to future-proof Malaysia’s financial backbone.
The RENTAS system is critical to the national economy, having settled transactions worth RM73.63 trillion in 2024 alone, said to equal 45 times the nation’s GDP.
Malaysia’s 5 Digital Banks Enter Their Next Phase
Malaysia unlocked a new digital banking milestone with all five BNM-licensed institutions commencing operations.
The newest additions went live in August 2025. KAF Digital Bank became the country’s second Islamic digital bank after AEON Bank, while Ryt Bank entered the market, positioning itself as the “world’s first AI-powered bank.”
Ryt Bank is leaning heavily into its tech credentials. Its Ryt PayLater facility allows its customers to apply for and receive credit of up to RM1,499. Next, its app also introduces Ryt AI, a virtual assistant powered by ILMU, Malaysia’s first homegrown large language model.
KAF Digital Bank has taken a more measured approach, launching with a Shariah-compliant savings account. Its upcoming business account, currently listed as “coming soon” on its website, promises a quick and easy digital onboarding experience for companies.
Among the early movers, GXBank continues to lead the pack. As of September 2024, it reported RM2.16 billion in deposits, marking one of the strongest adoption curves in the market.
AEON Bank followed with RM711 million in assets and RM339 million in deposits by November 2024, while Boost Bank recorded RM399 million in assets and RM204 million in deposits as of end-September 2024.
Notably, all banks are covered under PIDM’s deposit insurance scheme.
BNM Gears Up for Open Finance, A New Era of Customer Control
BNM released the Exposure Draft on Open Finance in November 2025, outlining regulations to ensure data sharing across the financial sector is secure, standardised, and driven entirely by user permissions.
At the core of this framework is customer consent. BNM mandates that consent must be “explicit, specific, voluntary, and revocable.” Customers will have the power to decide exactly what information is shared, with whom, and for how long, ensuring they remain the ultimate owners of their financial information access and use.
To facilitate this, financial institutions are required to provide a digital consent dashboard. This feature will act as a control centre. Users will be able to view active data-sharing permissions in real-time and revoke access instantly if they choose, providing a transparent view of their digital financial relationships.
Implementation will follow a phased approach to ensure stability. The rollout will begin with large banking groups sharing individual customer data, before expanding to include SME data and other financial service providers in subsequent phases.
The industry has until 1 March 2026 to provide feedback on these proposed rules via this form. Once finalised, the framework aims to enable more personalised financial products, faster credit approvals, and greater financial inclusion for underserved segments.
The Road Ahead Into 2026 and Beyond
As the top fintech Malaysia stories for 2025 indicate, the foundations laid now set the stage for a more dynamic decade ahead. Under the wing of the Digital Asset Innovation Hub, for example, Malaysia could emerge as a successful enabler of open finance.
Similarly, the maturity of digital banks will depend on their ability to differentiate beyond the usual. With infrastructure advantages now being locked in or underway, the competitive battlefield can soon shift towards customer experience, credit innovation, and ecosystem partnerships.
Banks that master integration with everyday platforms, rather than operating as standalone apps, may likely capture the largest share of Malaysia’s increasingly digital population.
Perhaps most critically, the regulatory momentum established this year creates an environment where innovation and consumer protection can coexist.
As BNPL oversight tightens and subsidy programmes like Budi95 demonstrate the power of digital delivery at scale, Malaysia is proving that financial modernisation does not require sacrificing stability or inclusion.
Malaysia’s next challenge will be maintaining this balance as technologies evolve and new risks emerge, but if 2025 is any indication, the appetite for thoughtful, ambitious reform remains strong.
