More than 10 parties express interest in setting up digital banks

KUALA LUMPUR: The digital banking framework, set to be launched by year-end is 50 per cent ready, and more than 10 parties have expressed an interest in setting up digital banks in the country.

Bank Negara Malaysia’s financial development and innovation department director Suhaimi Ali, speaking to reporters on the sidelines of the MyFintech Week 2019, said the parties comprised a mix of newcomers and financial players.

“There are quite a number of interested parties who have been talking to us. This helps us to understand their business models and fine tune proposals received with regards to the digital banks,” he added.

He said the purpose of the framework is to protect the system and serve the underserved segments such as start-ups and micro enterprises.

“It’s quite important given that digital banks now have the potential to bring tech efficiency and also serve the untapped market within the financial sector. The segments need a different type of ecosystem to get funding,” Suhaimi said.

Currently, there are 240 fintech companies in Malaysia with 40 per cent in the payment system industry, and in total, there are 48 e-wallet providers.

In addition, BNM is also developing an open banking framework to allow consumer data to be used with consent to bring benefit to them.

Suhaimi said with the Financial Sector Blueprint (2011-2020) almost coming to its end, BNM is developing a fresh blueprint for the future beyond 2020. – Bernama