KUALA LUMPUR: A consortium of Axiata Group Bhd's fintech arm Boost and RHB Banking Group has set a significant milestone as one of Malaysia's pioneers to establish a digital bank and fuel the creation of a more vibrant financial services sector here.
The Boost-RHB consortium on Friday was named as one of the recipients of the country's five digital bank licences issued by Bank Negara Malaysia.
In June last year, the consortium was formed with Boost owning a majority stake of 60 per cent and RHB owning the remaining 40 per cent in the digital bank to drive innovation, increase competitiveness and fast-track the country's digital transformation ambition.
Both parties will combine their deep expertise in specific areas - Boost's extensive fintech experience and RHB's intimate knowledge in banking services and risk management, to build a comprehensive suite of affordable and accessible digital banking and financial solutions.
Commenting on the development, Datuk Izzaddin Idris, president and group CEO of Axiata who is also the chairman of Boost, said: "This is a significant milestone for Axiata's fintech business and a validation of the strong value proposition we bring to the table with our partners RHB Banking Group. The digital banking business aligns with our collective aspirations to support Malaysia's digital transformation, as well as the advancement of Axiata's digital inclusion drive across the region."
"Securing this licence in our home ground delivers multi-pronged opportunities to address ongoing digitalisation shifts across our businesses. On one hand, we can now deliver financial inclusion to underserved and unserved segments such as the micro and small and medium.
"Enterprise community as they scale for growth to support the nation's economic recovery. At the same time, we're able to actively meet demand from our expanding digital-first consumer base seeking convenient, improved, and secure user experiences for banking and credit access. This development also reinforces Boost's experience and capabilities to pursue regional opportunities in this high-growth segment."
Sheyantha Abeykoon, group CEO of Boost said: "At Boost, we are extremely excited and thrilled with the announcement by Bank Negara. The Digital Bank will be a catalyst for greater financial inclusion and aligns with our core mission to financially empower and support users and merchants.
"The award of the digital banking licence now fulfils our vision of becoming a full spectrum fintech player in the region to better serve the underserved and as one of the pioneers in the industry, we look forward to this very exciting journey in creating an inclusive digital and financial ecosystem for all Malaysians together with RHB via the digital bank."
Mohd Rashid Mohamad, group managing director/group CEO of RHB Banking Group stated: "We are privileged to be part of this exciting chapter for the financial services industry in Malaysia. The Digital Banking licence granted to RHB and our partner Axiata is an important step in reinforcing our commitment to continuously enhance our value propositions and better serve our stakeholders, particularly in providing quality financial services to a wider range of customers, in this case – underserved businesses and individuals in Malaysia.
"Our joint customers will gain access to credit that is digital, nimble, and secure. Which ties in well with RHB's brand commitment of delivering simple, fast and seamless experiences. We look forward to playing our part in charting the industry's evolution into this exciting era of digital banking and making progress happen for everyone."
Dr. Siew Chan Cheong, chief strategy officer of RHB added: "Building a successful digital bank for underserved customers in Malaysia means embedding ourselves deeply into the daily lives of our customers to ensure that the digital bank is present and ready when they need it.
"Such an entity must exhibit not just high levels of convenience, but also a high level of trustworthiness and responsibility. Together with Boost, we believe that the digital bank we're building together will have all this in place. The digital bank also demonstrates RHB's commitment and desire to spur innovation within Malaysian financial services."