Boost, a regional fintech leader, and its consortium partner, RHB Banking Group (RHB), have been given official approval to start operations. Bank Negara Malaysia (BNM) and the Ministry of Finance (MOF) have given the greenlight to begin operations as a digital bank, starting from 15 January 2024.
The consortium will become the first primarily Malaysian-owned digital bank to commence operations with a pioneering embedded digital bank app in the local market. According to the joint press release from Boost and RHB Bank, the new digital bank aims to address financial inclusion gaps for the underserved and unserved.
Boost Bank to start alpha-testing
According to the press release, the Boost-RHB Digital Bank Consortium had managed to receive approval ahead of schedule, following a thorough operational readiness review validated by BNM.
The digital bank, now formally known as Boost Bank by Axiata and RHB (Boost Bank), will soon begin an alpha-testing phase.
This phase will involve internal employees, family, friends, and a selected group of customers. This will help to further refine the customer experience ahead of its public launch.
Enable digital wallets for over 10 million Boost customers
“Axiata is committed to nurturing a dynamic digital banking ecosystem, from enabling digital wallets for over 10 million Boost customers to introducing more innovative digital banking solutions to the underserved and unserved segments of Malaysian society,” said Vivek Sood, Group CEO of Axiata Group Berhad.
“This landmark achievement is a culmination of the symbiotic and strategic partnership between a leading fintech and successful financial institution with substantial ecosystems, united by a shared vision to drive greater financial inclusion,” said Sheyantha Abeykoon, Group CEO of Boost.
Towards a more inclusive financial ecosystem
Spearheading the new digital bank will be the newly appointed Chief Executive Officer (CEO) of Boost Bank, Fozia Amanulla.
“Rooted in the fundamental belief that everyone deserves a bright financial future, we are determined to propel Malaysia into an age of true financial inclusivity, by harnessing the untapped potential of embedded finance with our digital bank,” said Fozia Amanulla, CEO of Boost Bank.
“The approval received from Bank Negara Malaysia and the Ministry of Finance marks a significant milestone in our joint commitment with Boost to foster a more inclusive financial ecosystem, especially for the underserved businesses and individuals in Malaysia,” said Mohd Rashid Mohamad, Group Managing Director/Group Chief Executive Officer of RHB Banking Group.
The Boost-RHB Digital Bank Consortium, in which Boost holds 60% equity, and RHB owns the remaining 40%, was among the 5 successful license applicants announced by BNM in April 2022.
Read More: What Do Digital Banks Offer Customers Compared To Traditional Banks?
