Author: Johanan Devanesan

In today’s rapidly evolving digital landscape, combating financial scams and fraud is crucial to safeguarding the stability and trustworthiness of the Malaysian financial system. Leading this effort is Payments Network Malaysia Sdn Bhd (PayNet), the nation’s premier payments network and central infrastructure for financial markets. PayNet plays a significant role in combating financial crime in Malaysia by serving as the national payments network and shared central infrastructure for the country’s financial markets. As the national provider of financial market utilities, PayNet is instrumental in building inclusive, accessible, and efficient payment and financial ecosystems. This infrastructure is crucial for monitoring and…

In an era where technology is challenging and reshaping the contours of Syariah-compliant industries as well as the sectors financing them, Hong Leong Islamic Bank has been on what could turn out to be a pivotal journey of digital transformation. On this path, Hong Leong Islamic Bank has been guided in recent months by Dafinah Ahmed Hilmi, its Chief Executive Officer since mid-2023. According to the CEO, the bank’s foray into digitalisation is not merely about adopting new technologies; at its core, it’s a concerted effort to align with the evolving demands of customers, promote financial inclusion, and provide end-to-end…

In an era where the digital revolution is reshaping the landscape of the banking industry, Standard Chartered is looking to keep its employees at the forefront of innovation, with the launch of its latest Axess Academy in Malaysia recently. This move is part of the bank’s broader initiative to champion the upskilling and reskilling of its workforce across Asia, ensuring that banking professionals are better prepared for the challenges and opportunities of digital transformation. The Axess Academy, a bespoke and curated technology training centre, is a representation of Standard Chartered’s commitment to nurturing a culture of continuous learning and innovation…

The Real Time Electronic Transfer of Funds and Securities System (RENTAS) represents a cornerstone of the financial infrastructure in Malaysia, facilitating the real-time gross settlement (RTGS) of large-value payments across the nation’s financial institutions. This pivotal system facilitates the seamless execution of large-value payments across the country, playing a crucial role in the stability and efficiency of Malaysia’s financial markets. As the financial landscape undergoes rapid transformation, driven by fintech innovation and changing regulatory standards, the modernisation of RENTAS emerges as a pivotal initiative undertaken by Bank Negara Malaysia (BNM). In light of the need to update RENTAS to be…

A swift digital transformation is unfolding across the world’s financial sectors, and Malaysia’s Islamic banking sphere is very much part of this change. Offering insight into this evolution is Mohd Suhaimi Abdul Hamid, CEO of Standard Chartered Saadiq Malaysia, who remarked to Fintech News Malaysia, “We have seen the acceleration of digital adoption due to the pandemic, and banks are also paying more attention to digital transformation, as a result of rising demand for digital Islamic finance solutions. BNM’s issuance of five digital bank licenses in April 2022 has further spurred the banks to adopt even more digital services with…

GXBank Berhad, the first of Malaysia’s five digital banking licensees to officially commence operations on 1 September, is now the first to officially launch its beta app to the Malaysian public. As of 14 November 2023, this inaugural application will be accessible to an exclusive group of 20,000 Malaysian users, following a successful internal testing phase involving the bank’s employees and partners. GXBank is a subsidiary of GXS Bank Pte Ltd, one of Singapore’s premier digital banks that is a joint venture between Grab Holdings Limited and Singapore Telecommunications Limited (Singtel), along with a consortium of other Malaysian investors, including…

In a keynote address at the Fintech Frontiers Conference, Sammeer, the Managing Director & Head of Consumer, Private and Business Banking at Standard Chartered Malaysia, shed light on the pivotal role of Banking-as-a-Service (BaaS) in the bank’s strategy. The innovative new distribution method that BaaS represents — enabling bank-like functions such as credit lending on third-party platforms — is reshaping the traditional banking landscape as it relates to retail and services. BaaS is one of the channels enabling Standard Chartered to adapt to evolving client preferences, expand its reach, and foster financial inclusion, according to Sammeer. Embracing Change: Digital Initiatives…

The fintech funding landscape in Malaysia has been a hot topic of discussion in recent years, with significant growth and innovation in the sector. To shed light on the challenges and opportunities that fintech startups face, a roundtable discussion was held with key industry experts at the Fintech Frontiers Conference. The “Breaking Malaysian Fintechs’ Series B Barrier” panel included Sai Kit, Managing Partner of Artem Ventures; Thomas G. Tsao, Co-founder of Gobi Partners; Dato’ Syed Haizam Jamalullail, Managing Partner of The Hive Southeast Asia; Sam Shafie, Co-Founder and CEO of pitchIN; and was moderated by Wilson Beh, the President of…

The financial sector, long recognised for its complexities and necessary vastness, requires innovative, secure, and efficient data management solutions. Kenneth Kuek, Country Lead for InterSystems, speaks to Fintech News Malaysia on what InterSystems brings to the table to even the playing field for financial services firms, with its latest-generation data management solutions. Regulatory Compliance a Top Priority The financial sector globally is notorious for its rigorous regulatory demands. Singapore has the sector-wide Financial Services and Markets Act (FSMA) that governs the regulation of financial services and markets, while in Malaysia, the central Bank Negara has enacted the Financial Act 2013…

The digital banking landscape in Malaysia has been undergoing a remarkable transformation since Bank Negara Malaysia issued five digital banking licenses just over a year ago. These licenses have paved the way for pioneering digital banks to revolutionise the financial industry in the country. Digital banking is transforming the financial landscape in many countries worldwide, and Malaysia is no exception to this trend. But one question on the minds of many since mid 2022, is when exactly might the majority of these digibanks begin fullscale operations? In a recent panel discussion at the Fintech Frontiers Conference moderated by Vincent Fong,…

There has been significant furore ever since it was revealed that a transaction fee would begin to be imposed on merchants for accepting payments via the DuitNow quick-response (QR) code service, originally slated to start on 1 October. Public outcry including from merchants, politicians, and consumers was prompted after the announcement, along with sizable confusion about the implementation and purpose of the DuitNow QR payment service fee. Merchants believed that they were being unfairly charged for adopting a new but heavily used payment method, consumers thought that the additional costs would be redistributed in the price of goods and would…

Banking leaders agree: banks that want to succeed into the 21st century are already undergoing rapid digital transformation. Digitalisation is a must to overcome the inefficiencies of outmoded legacy infrastructure, to keep up with the surging customer demand for new services, and to be mobile- and digital-first. In countries like Malaysia, dedicated digital banking plays are coming to maturity, prompting even more demand for transformation amongst incumbent banks. But as more and more banks embrace digital transformation, banking leaders are in agreement that digital differentiation is just as core to offer the breadth of product diversity, that appeals to the…

Closing in on 30 years as a groundbreaking payment solutions provider in Southeast Asia, GHL Systems Berhad today can lay claim to an expansive payments footprint comprising over 452,800 touchpoints across Malaysia, Philippines, Thailand, Indonesia, Singapore and Australia. Now, GHL is pivoting its vast experience towards the digital loan and microfinancing segment in Malaysia. Since its inception in 1994 as a legacy payment processing and IT hardware business, GHL has successfully evolved into a full-stack software and merchant services solution provider. Over the years it has grown into Malaysia’s largest prepaid credit top-up and bill collection network, getting listed on…

The digital transformation journey of banks, particularly in the Asia-Pacific (APAC) region, has been a hot topic of discussion for years. Backbase, a global leader in engagement banking, has recently revealed the release of an IDC Infobrief that sheds light that a staggering 70% of digital transformation projects for banks in the APAC region have failed. A Regional Perspective on Digital Transformation The IDC Infobrief titled “Accelerating Customer-Centric Transformation by Balancing Build and Buy – A Collaborative Approach Towards Sustainable Digital Banking Architecture,” draws from a wealth of insights, based on data from 125 banks and 316 Chief Information Officers…

According to the Fintech Malaysia Report 2022, there are a total of 32 players who are actively involved in the insurtech space in Malaysia as of 2022, compared to only 16 players back in 2019. This shows that there is a growing market demand and potential for digital insurance products in Malaysia. In the ever-evolving landscape of the insurance sector, the importance of digital transformation has become increasingly apparent, especially in light of the COVID-19 pandemic. As people were forced to adapt to a virtual way of life, insurance companies recognised the urgency of embracing digitisation. Many insurance companies had…

The youth-oriented online insurance segment has been slowly growing in Malaysia, as they increasingly look for simplicity and convenience in their insurance coverage, coupled with an user-friendly customer experience. Under the Tune Protect Group, Tune Protect Malaysia is a licensed insurance player that prioritises this experience and squarely targets millennials, zillennials and SMEs in Malaysia. Primarily, this is done via its mobile-first strategy and user-friendly website with an e-commerce-like interface, with a mobile application launched back in the year 2020. The app lets users self-manage their insurance digitally at any time, according to their preferences and shifting needs – a…

In the modern era, the average consumer spends around eight hours per day online, equating to a third of their lives. This ranges from work and shopping to socialising or merely relaxing, highlighting the ever-increasing relevance of online cyber security. Today’s consumer now requires cyber security solutions that not only protect their devices, but also safeguard their ‘digital moments’. “The term ‘digital moments’ describes any activity that takes place in the consumer’s digital day-to-day such as online shopping, online dating, online banking, sending and receiving emails, paying bills and much more,” detailed a recent whitepaper from embedded security specialists F-Secure.…

Entrepreneurs eager to craft groundbreaking applications within Malaysia’s Islamic fintech sphere are likely to welcome the opportunities introduced by the FIKRA Islamic Fintech Accelerator Programme, initiated by the Securities Commission Malaysia (SC) alongside the United Nations Capital Development Fund (UNCDF). This year, the SC has unveiled FIKRA ACE, an ambitious fintech venture that sets out to bolster the Islamic capital market (ICM) ecosystem in Malaysia and internationally, streamlining the growth of Islamic fintech via a methodical approach. In an announcement, the SC revealed that the enhanced three-year initiative FIKRA ACE builds upon the launch of their pioneer Islamic fintech accelerator…

The recent blockbuster funding for insurance fintech firm PolicyStreet raised RM67 million (US$15.3 million), in a Series B fundraising round that was led by Malaysia’s sovereign wealth fund Khazanah Nasional. It is among the largest capital injections for an insurtech firm in Malaysia, and is indicative of the growing interest from Khazanah in the country’s blossoming fintech scene. The government-linked investment company was initially established in 1993 to manage and maximise the return on government assets and equities. A multi-stage institutional investor in Malaysia which counts key portfolio companies – including telecommunications provider Telekom Malaysia Berhad, financial group CIMB Holdings…

The blossoming fintech sector in Malaysia has taken centre stage in recent years, demonstrating impressive growth driven by innovative technology, regulatory support and changing consumer behaviour. The alternative funding environment in Malaysia, however, differs significantly from the rest of Southeast Asia. In the last two years, a profound shift has been occurring in the financial landscape of Malaysia, overturning the established order of venture capital (VC) funding. Peer-to-peer (P2P) and equity crowdfunding (ECF) platforms have emerged as the surprising forerunners, outstripping traditional VC funding in their ability to provide capital for not only fintech companies, but burgeoning enterprises overall. This…