, Malaysia

Malaysia targets web-only bank license rules by end-2019

The central bank had preliminary talks with internet-only bank operators overseas.

Malaysia’s central bank is targeting the release of virtual bank licencing requirements by the end of 2019 in a bid to keep up pace with its regional peers, reports Bernama.

Also read: Malaysian banks race fintechs in offering digital services to the emerging affluent

According to Bank Negara Malaysia (BNM) governor Datuk Nor Shamsiah Mohd Yunus, they already had a briefing with chief executive officers of financial institutions regarding virtual banking. “We have had some interests and discussions with a few banks that have established virtual banks overseas, but these are at a very preliminary stage,” she said in a press conference.

With no need to set up branches, virtual banks can deliver the full suite of retail banking services which can range from extending loans, operating savings account, issuing cards and offering payment services through an app or a website.

Malaysia’s virtual banking push comes on the heels of its Asian peers such as Japan, Korea, Taiwan and Hong Kong that have also embraced the idea of delivering purely digital banking experiences.   

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!