Roundup Of Digital Banks In Malaysia
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Digital banks are looking to be a serious game changer in not just Southeast Asia, but the world at large. The past few years have seen a number of digital banks emerge, offering customers a new simple, streamlined, and innovative way to bank.
While traditional banks will still remain a core part of the banking ecosystem, the flexibility and simplicity of digital banks will likely see more participants into the banking sector.
What do digital banks have to offer
Digital banks allow customers to conduct banking activities entirely online. Using a mobile app or website, a customer can perform banking transactions and access banking services remotely, without having to visit a physical branch. Customers can access their accounts at any time, from any location, and perform a wide range of transactions.
Here are some of the key benefits that digital banks offer:
Convenience
As mentioned above, convenience is the most obvious advantage that digital banks offer. So as long as you have a mobile phone or computer with internet access, you can settle your banking needs around the clock with digital banks.
This is particularly useful for individuals whose busy schedules may clash with traditional banks’ operating hours.
Saves on time
Traditional banks have been working to streamline the banking process. Digital banks have been built from the ground-up with this in mind, thus ensuring process efficiencies and saving the consumers’ precious time.
Tasks which previously required customers to visit a physical branch can now be accomplished with just a few taps on a screen. The ability to initiate transactions remotely and complete financial tasks quickly frees up time to focus on other priorities.
Financial monitoring
Keeping a close eye on your finances is a must in today’s dynamic economic environment. Digital banks tend to offer customers with an array of tools that allow them to monitor their financial health effectively and with ease.
Tools such as real-time notifications can alert users to notable activities, ensuring that they stay informed and aware of any potentially fraudulent transactions. Customers can also access detailed transaction histories, expense categorisation, and spending insights, helping them gain better control over their finances and make informed decisions.
Financial service integration
Digital banking has the systems necessary to seamlessly integrate with various financial services, further emphasising its convenience factor. Banking apps today allow customers to link their bank accounts with payment apps, e-wallets, and other digital platforms, enabling effortless transfers and payments.
Digital banks also tend to offer direct integration with budgeting apps and personal finance management tools, simplifying expense tracking and goal setting; eliminating the need for tedious manual data entry.
Read More: Pros And Cons Of Digital Banks
Malaysia’s first three digital banks
As of the writing of this article, three digital banks have commenced operations within Malaysia. These include:
GXBank
GXBank was the first digital bank to be given the greenlight to begin operations late last year. It is a Grab-led digital bank consortium that will be targeting local micro-SMEs (MSMEs) and other financially underserved segments such as gig economy workers.
GXBank products and services
- Easy savings account setup, as fast as 4 minutes with a MyKad
- 24/7 customer support service
- 1 user:1 device with real-time detection and prevention of unauthorised access
- Unlimited cashback debit card
- FlexiCredit allows for borrowing cash instantly with quick, hassle-free drawdowns
- Cyber Fraud Protect guards against losses due to unauthorised transactions from online scams up to RM20,000
Source: www.gxbank.my/gxbank-bank-app
Boost Bank
Boost Bank is a joint venture between fintech company Boost and RHB Banking Group. Unlike other digital banks, Boost Bank is taking a more traditional-finance approach to digital banking. It aims to create greater access for financial inclusion digitally amongst the underserved and unserved segments.
It should also be noted that the Boost-RHB Digital Bank Consortium is the first primarily Malaysian-owned digital bank to begin operations with a pioneering embedded digital bank app in the local market.
Boost Bank products and services
- Easy access to savings accounts that make your money work harder for you with minimal input
- Savings jar feature that encourages setting realistic and attainable money goals
- A new debit card offering that will be introduced soon, which will come with perks and rewards for spending
- Earn reward points, discounts, and vouchers by linking Boost Bank account to Boost app
Source: myboost.co/boost-bank
AEON Bank
AEON Bank is a subsidiary of AEON Financial Service. It also holds the unique position of being the first Islamic digital bank in Malaysia. Compared to other digital banks, an Islamic digital bank will have to be Sharia-compliant. As such, the bank will need to offer customers financial services that are compliant with the principles of Islamic finance.
The bank plans to leverage the clout of the AEON brand and its advocacy of digital technology to facilitate the introduction of new and innovative products to enhance the overall value proposition for its customers.
AEON Bank products and services
- Instant access to shariah-compliant savings accounts (Savings Account-i) at competitive profit rates
- Create savings pots for vacations, new wheels, education, wellness, pets, and more
- Smart budgeting tools that require no spreadsheets
- DuitNow integration for fast and easy transfers
- Debit Card-i that is secure and easily accessible
- Receive exclusive benefits and privileges with AEON loyalty programme
Source: www.aeonbank.com.my/deposit
Summary
| GX Bank | Boost Bank | AEON Bank | |
|---|---|---|---|
| Savings account | 3.00% p.a.* Savings Pocket DuitNow integration Hassle-free transfers | 2.50% p.a. Up to 4.00% p.a. with Savings Jar Up to 4% cashback on CelcomDigi bills 3x Boost Stars and exclusive discounts and rewards | 3.88% p.a. Automate savings with Savings Pot Free budgeting tools DuitNow integration |
| Debit card | Unlimited 1% cashback 1.5x GrabRewards at Jaya Grocer | Coming soon | Debit Card-i Exclusive benefits & privileges with AEON loyalty programme |
| Lines of credit | FlexiCredit offers cash instantly with quick, hassle-free drawdowns | - | - |
| Insurance | Cyber Fraud Protect offers RM20,000 online scam protection | - | - |
*Effective 1 October 2024, GXBank’s daily interest rate will be adjusted to 2.00% p.a.
