AS the global economy continues on its path towards recovery from the COVID-19 pandemic, digital banking licences are still maintaining the interest of financial institutions around the world.
Within the region alone, a number of new digital banks have already set up shop or are in the process of doing so, despite the disruption that COVID-19 caused.
According to PwC Malaysia financial services assurance partner Kevin Lee, the interest of obtaining digital banking licences from Bank Negara Malaysia (BNM) has been picking up since the recovery movement control order (RMCO) period.
“Because of the delay in (the feedback to Bank Negara Malaysia) guidelines, they have more time to look for partners (to jointly apply for a licence),” he said.
In March, BNM announced that the deadline for applications to obtain the licences (up to five are will be issued) have been extended from the initial date of Apr 30, 2020, due to disruptions caused by the COVID-19 outbreak.
“We understand that, most likely, the guidelines will be finalised by the end of this year, after which the central bank will open the application process early next year,” Lee added.
Last year, technology firm Grab, telco Axiata Group Bhd and at least five banks have signalled their interest in pursuing a licence, namely CIMB Group Holdings Bhd, Affin Bank Bhd, Hong Leong Bank Bhd, AMMB Holdings Bhd and Standard Chartered Bank Malaysia Bhd.
Ealier today, the National Cooperative Movement of Malaysia Bhd (Angkasa) announced that it has identified more than 10 conglomerates and major cooperatives in the country as its strategic partners in vying for one of BNM’s five digital bank licences.
Angkasa president Datuk Abdul Fattah Abdullah said that the combination of telecommunication and finance company partners will give Angkasa a significant edge to support the application for the licence.
He hopes that the digital bank licence will be able to strengthen Angkasa’s position from various aspects, including its role as the driving force of the country’s cooperatives in the future. – Dec 21, 2020
