Fintech companies, MyMy and Sukaniaga Sdn Bhd has announced their partnership to form a digital banking consortium and bid for one of five digital banking licences to be issued next year by Bank Negara Malaysia (BNM).
The ideal partner will be a tier- one Malaysian company with strong financials and a large customer base for distribution.
Chairman of MyMy, Tunku Ahmad Burhanuddin stated that the consortium plans to announce expansion plans in the coming months targeted at the 100 million Co-Operative members in ASEAN.
Burhanuddin said the collaboration covers most requirements, the consortium is still considering a final strategic partner before making their application to Bank Negara.
“Since we are receiving our investment from Koperasi Tentera, we have been working diligently on utilising digital financial services for the betterment of the Co-Operative community.”
“With our technology and extensive digital banking experience, combined with Sukaniaga’s leading products and customer base, together can future proof the Co-Operative industry’s role, servicing over six million members. Plus, our ambition is to become the world first Shariah-compliant digital bank,” Burhanuddin said.
In the meantime, Sukaniaga’s Managing Director, Mohammad Shaharul said both companies have ambitions to revolutionise banking for the betterment of Malaysia’s six million and the (100) million-strong Co-Operative members across ASEAN.
Shaharul said the consortium is also seeking an additional strategic partner to further strengthen the consortium in its bid for the digital banking license.
“Sukaniaga Sdn Bhd provides end-to-end solutions to digitise loan application processes and has secured a 15-year concession from 2018 to 2032.
“In 2020, the scope has been expanded to include a marketplace, Wallet and B2B digital platform with ANGKASA as its business partner extending its products to member Co-Operatives subscribing to ANGKASA’s accredited and recognised Salary Deduction System (SPGA).
“MyMy, fresh off recently raising Malaysia’s largest seed fundraising round from Koperasi Tentera (KT) also has strong links in the Co-Operative industry,” Shaharul said.
Bank Negara Malaysia (BNM) has issued its Licensing Framework for Digital Banks in late Dec 2021 and indicated that it may issue up to five digital bank licences.
