Malaysia’s five operational digital banks now serve 1.97 million customers and together hold RM3.1 billion in deposits as at September 2025, according to data released in a parliamentary reply and reported by Bernama.

The figures reflect the first detailed update on the performance of the new entrants since the rollout of the digital banking framework.

The institutions contributing to these numbers are GXBank, AEON Bank, Boost Bank, KAF Digital Bank and Ryt Bank.

The Ministry of Finance (MOF) noted that a substantial share of their user base comes from communities that often face hurdles accessing traditional banking services, indicating that early adoption is taking place among the groups targeted by the digital banking initiative.

The ministry provided the latest information while addressing a question in the Dewan Negara on whether the products offered by the digital banks are meeting the needs of lower income households, particularly those within the B40 category.

In its response, MOF outlined that the banks operate entirely through digital channels and currently provide payment functions, deposit accounts and savings features designed to help customers develop more consistent financial habits.

The ministry added that the range of services is expanding. Several of the banks have begun rolling out financing products aimed at micro, small and medium enterprises, including newer businesses and individuals running their own operations.

Partnerships with insurers have also resulted in the introduction of low cost micro-protection plans that cover risks such as cyber fraud, unauthorised transactions and personal accidents.

Featured image: Edited by Fintech News Malaysia, based on image by leungchopan via Freepik