Malaysia’s central bank receives 29 bids for digital banking licenses

Bank Negara, the central bank of Malaysia, said on July 2 that it has received a total of 29 applications for digital banking licenses, with applicants including banks, industry conglomerates, technology firms, e-commerce operators, fintech players, cooperatives and state governments.

The deadline for bids was June 30. Plans are to issue up to five licenses in the first quarter of 2022.

In a latest move, Singapore Telecommunications, or SingTel, has joined forces with ride-hailing and e-commerce firm Grab Holdings to bid for a digital banking license in Malaysia, SingTel said in a release on July 1.

SingTel would bid with Grab in a consortium with “other investors,” the filing said, without elaborating.

One day earlier, Singapore-based wealth management fintech platform iFAST Corporation said it will also enter the bidding round for a digital banking license in Malaysia through a consortium with mainly Malaysian partners, including local investment firm THZ Alliance.  Another partner is China’s Yillion Fintech, a digital bank backed by Chinese consumer service platform Meituan Dianping.

The two bidders will compete with a consortium headed by AirAsia Group’s fintech unit BigPay, as well as a joint venture of Malaysian telecom firm Axiata and RHB Bank which have voiced their ambitions through earlier filings.

Other companies that have shown interest in a digital banking license in Malaysia are US-Malayan telecom, media and technology firm Green Packet, local property developer Sunway, Singapore-based and NYSE-listed e-commerce holding Sea Group and Razer Fintech, the financial technology arm of Singaporean Consumer electronics company Razer.