This month witnessed two significant developments in the digital banking space in Malaysia. On 8 August 2025, KAF Digital Bank Berhad commenced its Islamic digital banking operations¹ while YTL Digital Bank Berhad (operating as Ryt Bank) kicked-off its digital banking business on 25 August 2025².
 
Conventional digital banking licensees, GX Bank Berhad and Boost Bank Berhad, and Islamic digital banking licensee, AEON Bank (M) Berhad, have commenced operations sometime from September 2023 to January 2024. With the operationalisation of KAF Digital Bank and Ryt Bank, all five digital banks in Malaysia have commenced business.
 
Some of our previous articles on digital banking in Malaysia can be accessed here, here, here and here.
 
Alert by Lee Ai Hsian (Partner) of the Fintech Practice and the Banking and Finance Practice of Skrine.
 

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