KUALA LUMPUR, Jan 22 — Ride-hailing group Grab, gaming firm Razer, AirAsia, telecoms firm Axiata and lender CIMB are among companies looking to apply for digital banking licences in Malaysia, sources told Reuters.
Some of these companies have begun talking to consultancies as they explore a possible foray into digital banking, said the people familiar with the matter.
Across Asia, regulators are opening up banking to new digital players, encouraged by a boom in mobile connectivity and the prospect of tech firms — not shackled to expensive physical branches — offering low-cost financial services.
This month Singapore received 21 applications for five digital bank licences.
In December, Malaysia’s central bank announced plans to issue up to five licenses to new online banks offering either conventional or Islamic banking under a proposed licensing framework set to be finalised by June-end.
“Many financial and non-financial institutions are sizing up market opportunities and working with external parties,” said one of the people, who declined to be identified as they were not authorized to speak to the media.
Malaysia has said it prefers bidders whose equity is controlled by local companies.
The people said Razer — whose fintech unit led a consortium for a Singapore application—- was in talks with a local conglomerate for a Malaysian licence. Local lenders Hong Leong Bank and Maybank are also considering bidding for a licence, the people said.
Razer Fintech’s CEO Lee Li Meng told Reuters the company had extensive operations in Malaysia in the digital payments space and would evaluate the digital banking opportunity.
One option for Axiata is to apply through Axiata Digital Services, which houses all of the group’s digital ventures and owns the e-wallet Boost. AirAsia’s financial services venture, BigPay, operates an e-wallet that comes with a prepaid card. — Reuters