Affin Hwang Investment Bank says winners of the five digital banking licences are likely to have partners with deep pockets and established connection.
, Sunway Holdings, IOI Corp, Hiap Teck, Poh Huat and LB Aluminium, JF Apex Research says
Green Packet has teamed up with Zico Holdings Inc and M24 Tawreeq Sdn Bhd to jointly submit an application for one of the five digital banking licences to be issued by Bank Negara Malaysia.
KNM’s shareholders have rejected its proposed private placement of up to 987.52 million new shares or 30% of its issued share capital to raise RM167.9mil.
Sunway has teamed up with Tencent-backed Chinese fintech firm Linklogis Inc and Bangkok Bank PCL to also apply for a digital bank licence from Bank Negara.
Malaysia’s financial sector will likely see stiff competition unfold over the next couple of years when digital banks make their debut and try to wrest market share from traditional lenders.
This is a scenario that is already set to play out in neighbouring Singapore, where the central bank recently issued four licences to non-bank companies.
Malaysia’s central bank, Bank Negara Malaysia, is the final stages of developing a licensing framework for digital banking, Assistant Governor Adnan Zaylan Mohamad Zahid said in a speech at a virtual financial technology conference on December 2. He didn’t provide a time line for launch.