Malaysia becomes the latest to capitalize on the rising trend of digital banking with plans to issue up to five licenses.
Malaysia’s central bank will issue the new licenses under a proposed framework that will be finalized in the first half of 2020 which will cater to online banks offering both conventional and sharia-compliant services.
«Such digital banks are expected to offer meaningful access to and promote responsible usage of suitable and affordable financial solutions to financial consumers,» according to a «Reuters» report citing a statement from Bank Negara Malaysia (BNM).
According to a draft proposal, the Internet-based lenders could help close the gap in Malaysia’s underserved customers and unbanked individuals. The new digital lenders will also have access to the country’s shared ATM network.
Preference will be given to license recipients «where the controlling equity interest in the proposed licensed digital bank resides with Malaysians,» the draft added. Other requirements include demonstrable viability for the first three to five years of operations with an asset threshold of no more than 2 billion Malaysian ringgit ($490 million) during the period.
