27/07/2025

ON SUNDAY JULY 27, 2025 theSunday Special XI

A snapshot of Malaysia’s digital banks

HERE are five licensed digital banks in Malaysia, each with its unique offerings:

GXBank Backed by: Grab Holdings Inc. and Kuok Group Features: • Fully digital personal banking solutions • GX Account, GX FlexiCredit and GX Card with instant cashback • Daily interest payouts • No minimum balance requirement • Unlimited 1% cashback on all user spend ing • Integration with the Grab ecosystem, including PayLater and rewards AEON Bank Backed by: AEON Financial Service Co. Ltd. Features: • Malaysia’s first fully Shariah-compliant digital bank • Digital savings accounts, payment cards and budgeting tools • Profit rates ranging from 0.88% to 3% • Minimum balance requirement of RM20 • Targeted at underserved and under banked communities, particularly those aligned with Islamic banking values

Boost Bank Backed by: Axiata Group and RHB Banking Group Features: • Integrated with the Boost e-Wallet app • Savings Jars to help users develop better savings habits • Interest rates up to 3.6% p.a. (promo tional) • No minimum deposit requirement • Debit card with a zero annual fee • Focus on micro-businesses and gig economy workers through digital finan cial tools

The emergence of digital banks signals a shift in consumer expectations.”

Syahrul Ishak

KAF Digital Bank Backed by: KAF Investment Bank

Features: • Focus on Islamic savings accounts and investment solutions • Currently in the alpha testing phase • Target market includes micro, small and medium-sized enterprises (MSMEs) with limited access to traditional banking

Ryt Bank Backed by: YTL-Sea consortium

Features: • AI-powered personalised banking ser vices • Multilingual 24/7 customer support • Advanced security measures like bio metric authentication • Currently in the alpha testing phase • Focus on cross-border digital transac tions and digital commerce enablement

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Pros and cons of going digital

There will always be a good and a bad side to everything.

Pros: • Higher interest rates: Digital banks often offer better interest rates com pared to traditional banks. For instance, GXBank provides a daily interest rate of 3% p.a., surpassing Maybank’s fixed deposit rate of up to 2.7% p.a. • Lower fees: Many digital banks have minimal to no fees for account mainte nance, transfers or withdrawals. • Convenience: Open an account, trans fer funds or apply for a loan—all from your smartphone. • Inclusive access: With better data analytics, digital banks can evaluate creditworthiness beyond traditional cri teria, potentially benefiting freelancers, gig workers and small business owners.

Cons: • Limited physical presence: The ab sence of branches means that there are no face-to-face interactions, which some customers prefer. • Digital literacy required: Not everyone is comfortable navigating mobile apps or online platforms. • Product range: Being relatively new, some digital banks might offer a limited range of products compared to tradi tional banks. • Security concerns: Though digital banks employ cutting-edge cyberse curity, users may still worry about online fraud or data breaches.