iFAST Corp Ltd has led a consortium in the submission of an application for a digital bank licence to Bank Negara Malaysia (BNM).
This is the second consortium of such nature after Paramount Corp Bhd led a consortium comprising Star Media Group Bhd, RCE Capital Bhd, Prosper Palm Oil Mill Sdn Bhd and a technology partner submitted a similar application to the central bank recently.
iFAST Corp will own a 40% stake in the digital bank if the application is successful. The beneficial equity ownership of the consortium will be approximately 57% Malaysian.
Its Malaysian consortium partners are Koperasi Angkatan Tentera Malaysia Bhd, THZ Alliance Sdn Bhd and Lee Thiam Wah, founder and major shareholder of 99 Speed Mart Sdn Bhd.
The vast experience and market reach of these consortium partners will enable iFAST Bank to better address the needs of the underserved market, thereby improving financial inclusion and growth in Malaysia, according to iFAST Corp.
Internationally, the iFAST Bank consortium comprises Yillion Fintech Pte Ltd which provides the core digital banking technology and capabilities for Yillion Bank which is one of the four digital banks in China founded by Zonfar Financial Holding and Hong Kong-listed Meituan Dianping.
“Our consortium partners are excited with the possibility of getting a digital bank licence in Malaysia which will allow us to tap into the exciting digital banking opportunities in Malaysia as well as to develop a truly-global digital banking and fintech business model,” commented iFAST Corp chairman and CEO Lim Chung Chun.
“In the financial sector including banking, the emergence of truly global fintech business models has lagged behind other industries such as e-commerce, video-streaming, music and media.”
This is due to financial sector regulations of various countries that tend to slow down the efforts of most financial institutions in creating global fintech businesses, according to Lim.
Zooming in on the local opportunities, Lim shared how iFAST Bank can create positive change for the unserved and underserved market segments such as the Bottom 40% (B40) population in Malaysia.
“With the synergistic capabilities within our consortium, the solutions offered for the B40 are ones that will provide immediate benefits and results – such as free life insurance, interest-free loans for daily necessities, and micro investments and insurance,” enthused Lim who is a Malaysian. – July 1, 2021
