KUALA LUMPUR, Jan 26 — Financial technology (fintech) firm Boost Holdings Bhd is poised to expand its presence in the financial sector by focusing on banking and lending segments while persistently seeking new markets.
Boost, which is Axiata Group Bhd’s subsidiary, has formed a consortium with RHB Banking Group to apply for a digital banking licence from Bank Negara Malaysia (BNM), where Boost will own a majority stake of 60 per cent in the digital bank joint venture (JV), while RHB would hold the remaining 40 per cent, with a minimum issued share capital of RM100 million.
Boost chief executive officer Sheyantha Abeykoon said the company is confident of obtaining one of the five digital banking licences offered by BNM because it submitted a fairly strong application and is positive on the consortium’s application.
“We engaged in a very deep engagement with BNM and the regulator when the digital banking licence application came, and we already know what technology is required, at least from a technological standpoint. So I believe we have invested significantly, and at the same time, we have consortium partners who share our vision,” he told a virtual media briefing titled “Boost: Spearheading Fintech Innovation, Accelerating Regional Growth” today.
On its expansion in a new market, Sheyantha said the firm is looking at penetrating new markets in the next two years. However, he said that it is yet to reveal the details.
“We are focused on adding one or two more markets in the next 12 to 24 months and simultaneously deepen our presence in the Indonesian market,” he added.
Currently the firm has a presence in seven markets through cross border payments and Boost is a licensed operator in Malaysia and Indonesia.
Commenting on Boost’s performance last year, Sheyantha said the fintech firm recorded gross total value transactions of US$1.2 billion (RM5 billion) and over US$900 million loans were disbursed.
Sheyantha said Boost would also be prioritising the expansion of its Buy-Now-Pay-Later (BNPL) products in 2022 as it is in a unique position to dominate this space in Malaysia having the basic tenets to build the business, a large active consumer base, an expansive merchant network, settlement and payment infrastructure, and best in class digital underwriting and collection capability.
“The company will also be expanding its B2B platforms with a goal to enable SMEs to participate more broadly in the digital economy,” he added.
The fintech business is operated by five different entities – Boost Life, Boost Biz, Boost Credit, Boost Connect and Boost Indonesia, making us one of the few fintech companies to operate a payment, lending, merchant solutions and cross border remittance platform at scale in Malaysia. — Bernama
