On 2 July 2021, Bank Negara Malaysia (“
BNM”), the Central Bank of Malaysia , announced that it has received 29 applications for a digital bank licence under the Financial Services Act 2013 and the Islamic Financial Services Act 2013, following a 6-month application period, which ended on 30 June 2021.
According to BNM’s statement, the applicants comprise a diverse range of parties including banks, industry conglomerates, technology firms, e-commerce operators, FinTech players, cooperatives and state governments.
According to
Fintechnews.my, the following are some of parties that have submitted bids to BNM for a digital bank licence:
According to BNM, successful applicants that meet all prudential criteria will be expected to contribute towards greater financial inclusion by offering products and services to address market gaps in the underserved and unserved segments. This includes promoting suitable and affordable financial solutions by leveraging on innovative application of technology.
BNM has indicated that up to five licences may be issued and notification of successful applications will be made in the first quarter of 2022.
Alert by Lee Ai Hsian (Partner) of the Banking and Finance Practice of Skrine.
This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such.