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KUALA LUMPUR – Fresh from being awarded a digital banking licence from Bank Negara Malaysia (BNM), Grab Holdings Ltd aims to put the underserved segments of society at the forefront of its financial services.
In a statement today, the technology firm said small and medium enterprises (SMEs), which form the backbone of the country’s economy, are expected to be key beneficiaries of digital banking.
“The digital bank to be established is expected to enable local micro-SMEs and other financially underserved segments such as gig economy workers to access a suite of financial services that will serve them through their lifecycle.”
Earlier today, BNM had announced that the consortium GXS Bank Pte Ltd – a joint venture between Grab and Singtel (Singapore Telecommunications Ltd) – has been selected as one of five applicants to be awarded digital banking licences, as well as other investors, including Kuok Brothers Sdn Bhd.
The other successful applicants are the consortia of Boost Holdings Sdn Bhd and RHB Bank Bhd; Sea Ltd and YTL Digital Capital Sdn Bhd; Aeon Financial Service Co Ltd, Aeon Credit Service (M) Bhd and MoneyLion Inc; and a consortium led by KAF Investment Bank Sdn Bhd.
The Grab-Singtel joint venture was formed in 2020 and was awarded a full digital banking licence in Singapore in December the same year.
Grab said its Malaysian consortium will now be working closely with BNM to meet all its requirements before it is allowed to operate.
BNM had said that successful applicants will undergo a period of operational readiness that will be validated by the central bank through an audit before they can commence operations, which can take between 12 and 24 months.
According to Grab, subject to regulatory approvals, its joint venture with Singtel will hold a 55.45% stake in the proposed digital bank.
It also announced Standard Chartered Malaysia’s former managing director and country head of consumer, private and business banking, Lai Pei-Si, as CEO-designate for its digital bank.
Lai is a 25-year financial services industry veteran with experience in retail banking, wealth management, corporate finance, product and business management as well as governance in both local and international markets.
“The opportunity to build the Malaysian digital bank from the ground up and be at the forefront of the fast-evolving Malaysian fintech landscape is incredibly exciting.
“Aside from leveraging agile banking technology that will enable us to offer tailored and unique banking experiences for our consumers, my team and I will also tap on the strong support from our shareholders and strategic partners, as well as guidance from BNM and the Finance Ministry.
“This is to deliver on our mission to serve and empower underbanked Malaysian communities such as gig workers and small businesses.” – The Vibes, April 29, 2022