Boost-RHB Digital Bank Consortium secures approval from BNM, MOF to launch Boost Bank in Malaysia 

• Received regulatory approval ahead of schedule, validated by BNM's review
• Consortium enters alpha-testing with internal employees & selected customers

Boost, a regional fintech leader, and its consortium partner, RHB Banking Group, received official approval from Bank Negara Malaysia (BNM) and the Ministry of Finance (MOF) to begin operations as a digital bank, effective from 15^th of January 2024. 

This marks a milestone as the consortium becomes the first primarily Malaysian-owned digital bank to commence operations with a pioneering embedded digital bank app in the local market, designed to address financial inclusion gaps for the underserved and unserved, as stated in a joint statement by Boost and RHB.

The Boost-RHB Digital Bank Consortium received regulatory approval ahead of the scheduled timeline, following a thorough operational readiness review validated by BNM. Having successfully demonstrated a robust and resilient foundational infrastructure for the digital bank, now formally known as Boost Bank by Axiata and RHB (Boost Bank), the consortium will advance into the alpha-testing phase involving internal employees, family, friends, and a selected group of customers.

In the lead-up to the public launch, the digital bank will progressively enhance its product propositions and refine the user experience, paving the way for a new era of embedded finance tailored to meet the diverse needs of all Malaysians.

Fozia Amanulla, recently appointed CEO of Boost Bank, leads an experienced digital bank team, leveraging fintech talent from Boost, encompassing expertise across technology, information security, product, risk and compliance, and more. This team combines fintech talent from Boost, banking expertise from RHB, and new capabilities from the wider industry.

Vivek Sood, Group CEO of Axiata Group Bhd, expressed Axiata's commitment to nurturing a dynamic digital banking ecosystem, from enabling digital wallets for over ten million Boost customers to introducing more innovative digital banking solutions for the underserved and unserved segments of Malaysian society.

“Our aim is to broaden the digital banking options available to those with limited access to conventional banking facilities, fostering an inclusive digital society for all Malaysians, which aligns with Axiata's vision of becoming the next-generation digital champion. As we progress on our telco-techco journey, Axiata will continue to focus on its portfolio of assets, including digital businesses, to accelerate long-term value for our shareholders,” he added.

Sheyantha Abeykoon, Group CEO of Boost, said: “We are appreciative of the regulators' trust and confidence in our digital bank and remain committed to upholding the highest standards as we reimagine financial services responsibly, through the power of technology and data. This landmark achievement is a culmination of the symbiotic and strategic partnership between a leading fintech and successful financial institution with substantial ecosystems, united by a shared vision to drive greater financial inclusion. It underscores the capabilities of our pioneering team, which built the bank from scratch. Our people are at the core of our innovation, and I am confident that the team will turn our digital bank vision into reality."

Meanwhile, Fozia added, “Rooted in the fundamental belief that everyone deserves a bright financial future, we are determined to propel Malaysia into an age of true financial inclusivity, by harnessing the untapped potential of embedded finance with our digital bank. Backed by the consortium's combined ecosystem and wealth of data, we are uniquely positioned to offer embedded finance.”

“The approval received from Bank Negara Malaysia and the Ministry of Finance marks a significant milestone in our joint commitment with Boost to foster a more inclusive financial ecosystem, especially for the underserved businesses and individuals in Malaysia. Under the leadership of Fozia and her experienced digital banking team, we are confident that Boost Bank is poised to take the lead in the digital fintech landscape. Together, we make progress towards ensuring a robust, inclusive financial ecosystem that will benefit everyone in our diverse community,” Mohd Rashid Mohamad, Group managing director/group CEO of RHB Banking Group said.

The Boost-RHB Digital Bank Consortium, in which Boost holds 60% equity, and RHB owns the remaining 40%, was among the five successful license applicants announced by BNM in April 2022. As the consortium commences its operations in phases following the completion of the operational readiness audit, Malaysia is poised to unlock the benefits of greater financial inclusion.