KUALA LUMPUR, Jan 8 — Boost Bank Bhd and Aeon Bank (M) Bhd have received the official approval from Bank Negara Malaysia (BNM) and the Ministry of Finance (MoF) to commence operations as digital banks, with effect from Jan 15, 2024.

Boost Bank is owned by the Boost-RHB Digital Bank Consortium, in which Boost Holdings Sdn Bhd holds 60 per cent equity and RHB Bank Bhd owns the remaining 40 per cent, while Aeon Bank is a 50 per cent associated company of Aeon Credit Service (M) Bhd.

In a filing with Bursa Malaysia today, RHB Bank said the consortium received regulatory approval ahead of the scheduled timeline, following a thorough operational readiness review validated by BNM.

"This marks a momentous milestone as the consortium becomes the first primarily Malaysian-owned digital bank to commence operations with a pioneering embedded digital bank application (app) in the local market, designed to meaningfully address financial inclusion gaps for the underserved and unserved,” it said.

It said that in the event Boost Bank is wound down and required to implement its exit plan during its foundational phase, RHB Bank and Boost shall provide adequate funds proportionate to its shareholding in Boost Bank at the material time.

"This is to ensure that Boost Bank has sufficient funds to satisfy all its remaining obligations and liabilities due, including customer deposits,” it said.

In a separate filing to the exchange, Aeon Credit Service announced that Aeon Bank has similarly obtained approval from the central bank and the MoF to commence its digital banking operations in Malaysia.

"This positions Aeon Bank as the first Islamic digital bank in Malaysia, and the approval was granted pursuant to BNM’s validation of the bank’s operational readiness,” it said.

Aeon Bank chief executive officer Raja Teh Maimunah said as part of one of Malaysia’s most recognised retail household brands, the bank aims to provide accessible, inclusive, and Shariah-compliant digital banking solutions to its Aeon group of customers as well as to all Malaysians.

For the rollout of the digital presence, Aeon Bank plans for a phased rollout of its new app, beginning with an exclusive beta testing phase with the group’s employees.

" Aeon Bank targets to unveil its phased rollout in the first half of this year,” she added. — Bernama