BNM to make digital banking licence announcement upon completion of legal process

Home » BNM to make digital banking licence announcement upon completion of legal process

UALA LUMPUR (March 30): Bank Negara Malaysia (BNM) governor Tan Sri Nor Shamsiah Mohd Yunus said on Wednesday (March 30) the central bank will announce in the near future its decision on the award of up to five digital bank licences in Malaysia to successful applicants upon completion of the legal process.

Nor Shamsiah said this when reporters asked her for an update on Malaysia’s proposed award of up to five digital bank licences in an exercise that saw the central bank receive 29 applications.

She was speaking at a virtual media briefing on Wednesday in conjunction with the publication of BNM’s latest 2021 Annual Report, Economic and Monetary Review and Financial Stability Review reports.

On July 2, 2021, BNM said in a statement it may issue up to five digital bank licences and that notification of successful applications will be made in the first quarter of 2022.

“BNM announced today (July 2, 2021) that it had received 29 applications for digital bank licences under the Financial Services Act 2013 and the Islamic Financial Services Act 2013 following a six-month application period which ended on June 30, 2021.

“A diverse range of parties have submitted applications for the digital bank licences, ranging from banks to industry conglomerates, technology firms, e-commerce operators, fintech players, cooperatives and state governments,” BNM said.

According to the central bank, 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. 

BNM said the criteria include promoting suitable and affordable financial solutions by leveraging innovative application of technology.

Chong Jin Hun