The introduction of digital banks in Malaysia is set to further enhance the nation’s financial inclusiveness, particularly for underserved and unserved segments of the population.
Payments Network Malaysia Sdn Bhd (PayNet) director Ganesh Kumar Bangah (left in pic) said that by leveraging advanced technology, these digital entities promise to redefine the traditional banking landscape, offering more accessible, convenient, and affordable financial services to a wider audience.
“Digital banks are also aimed at reaching Malaysians in remote or rural areas who previously faced significant barriers to conventional banking services,” said Ganesh, who is also advisor to the National Tech Association of Malaysia (PIKOM) while being Executive Chairman of the Commerce.Asia and Xamble-Nuffnang groups of companies.
“The ability for users to access banking operations from their smartphones or computers eliminates the geographical and logistical constraints associated with brick-and-mortar branches. This digital shift democratises financial services and opens up a realm of possibilities for those previously marginalised by the traditional banking system.”
The digital bank model bypasses the need for physical branches, allowing users to access banking services online. As a result, this model significantly reduces operational costs, making services more affordable for all Malaysians.
Since last year, these digital banks have been introducing new services, such as real-time payments and peer-to-peer lending, focusing on the needs of youths, entrepreneurs and small businesses, sectors often overlooked by traditional banking.
“By making banking services more accessible, affordable and tailored to the diverse needs of the population, digital banks are set to bridge the financial divide, creating a more inclusive economy for all Malaysians,” said Ganesh to Business Today on the sidelines of a GXBank event held recently in Semua House, Kuala Lumpur.
PayNet’s single largest shareholder is Bank Negara Malaysia (BNM), together with eleven Malaysian financial institutions as joint shareholders. PayNet is the national payments network and shared central infrastructure for Malaysia’s financial markets, organised the event.
Also present at the event was GXBank CEO Lai Pei Si (right in main pic) who had delivered the event’s opening address.
GXBank Berhad, the first of Malaysia’s five digital banking licensees to officially commence operations on 1 September last year, had already attracted over 100,000 customers within the first few weeks of launching its beta app.
“We are fully committed to bridging the gap for the underserved in line with our mission of offering every Malaysian an opportunity for financial inclusion. Through our innovative products and solutions, GXBank aims to break the cycle of poverty by providing essential financial services to those historically excluded from the banking system,” said Lai.
“We believe in the concept of ‘Sepoket Impian, Seribu Harapan’ (‘A Pocketful of Dreams, A Thousand Hopes’) and are set to empower Malaysians with the knowledge and tools necessary for financial well-being. These efforts are designed to help customers understand and navigate the array of financial products available, enabling them to make informed decisions that can transform their lives.”
GXBank is a subsidiary of GXS Bank Pte Ltd, a joint venture between Grab Holdings Limited and Singapore Telecommunications Limited (Singtel), supported by a consortium of Malaysian investors, including the Kuok Group.
“By prioritising accessibility, affordability and educational outreach, GXBank aims to play our part in reshaping the economic landscape for a more inclusive financial future for all Malaysians,” said Lai.
