Eighteen banks have joined the second testing phase of Malaysia’s MyDigital ID programme as the country moves closer to rolling out digital identity across financial services.
The update was disclosed by the Ministry of Finance in a parliamentary response as regulators continue to assess whether the banking sector is ready for large-scale adoption of the national digital identity system, Bernama reported.
Phase 2 of the sandbox is testing MyDigital ID’s e-verification function, which allows customers to authenticate their identity digitally during account onboarding and secure transactions.
The government said MyDigital ID Sdn Bhd and Bank Negara Malaysia are overseeing the integration using security-by-design controls, privacy-preserving safeguards and governance measures that support audit requirements and align with international best practices.
Ten of the 18 banks are currently integrating the system, while two have completed technical onboarding.
The testing phase is expected to conclude in March 2026 before any move is made towards wider implementation, subject to the readiness of individual institutions.
The ministry added that 15 banks participated in the first sandbox phase, which concluded in June 2025.
Six completed system integration and eight carried out digital identity testing.
Regulators said nationwide deployment will only proceed once financial institutions demonstrate sufficient operational readiness and meet regulatory security standards.
Featured image: Edited by Fintech News Malaysia, based on image by thanyakij-12 via Freepik
