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null A look at the digital bank plans of AEON Credit, Al Rajhi and Bank Islam

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A look at the digital bank plans of AEON Credit, Al Rajhi and Bank Islam

1 Jun 2022 | Wednesday Source: The Edge Markets

BANK Negara Malaysia may have awarded only five digital bank (DB) licences recently, but there are certainly more DBs coming into the market, especially in the Islamic space.

At least two standalone Islamic banks — Bank Islam Malaysia Bhd and Al Rajhi Banking & Investment Corp (M) Bhd (Al Rajhi Malaysia) — plan to set up their own digital banks with their existing Islamic banking licences, to compete in the new and more competitive landscape. These are expected to be launched as early as this year.

Meanwhile, AEON Credit Service (M) Bhd, which clinched one of the five DB licences issued by Bank Negara, wants to focus mainly on retail financing within the AEON ecosystem.

Its chief transformation officer Ajith Jayaram says the DB is expected to start off with deposit and financing products. Later, it will introduce wealth management and investment products. “[We’re aiming] to go to market in 12 to 18 months. Twelve months would be very early pilot testing and 18 months would be product rollout,” Jayaram tells The Edge in an interview.

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