KAF Investment Bank has begun sounding out interest in strategic options for KAF Digital Bank, including a potential sale or stake reduction, according to The Edge.

The talks come amid a leadership change at KAF Digital Bank. CEO Rafiza Ghazali is set to step down at the end of the month, with Suzaini Mokhtar appointed acting CEO.

Rafiza will join crypto investment platform Fasset as Managing Director for Consumer Banking from 1 February.

KAF Digital Bank has continued to post losses since launch.

For the financial year ended 30 June 2025, it recorded a net loss of RM44.4 million, with total assets of RM215.66 million.

Losses widened to RM11.83 million in the first quarter of FY2026, while assets rose to RM225.36 million.

People familiar with the matter said KAF Investment Bank has reached out to several parties, including financial institutions and regional players, to assess interest in the Islamic digital lender.

Sources said discussions have referenced a potential price of around RM80 million for a full sale of KAF Digital Bank.

KAF Digital Bank was set up with partners Carsome, MoneyMatch, Jirnexu and StoreHub, while KAF Investment Bank remains the controlling shareholder with an 84 percent stake. Each partner holds 4 percent.

Any ownership change would require approval from Bank Negara Malaysia, which issued only five digital banking licences in 2022 after a competitive selection process.

The lender is one of five licensed digital banks in Malaysia, all of which remain loss-making.

KAF Investment Bank reported profit after tax of RM52.97 million in FY2025, down from RM62.12 million a year earlier.

Profit fell to RM7.2 million in the first quarter of FY2026 from RM19.48 million. Total assets stood at RM8.26 billion as of end-September 2025.

Industry participants point to heavy compliance and risk-related spending as a major strain on early-stage digital banks.

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