ACE Market-listed technology outfit PUC Bhd has deemed itself as a “uniquely qualified” contender for Bank Negara Malaysia’s (BNM) digital banking licence which has attracted some 40 parties.
This is given the company has already been developing financial related products and infrastructure even before the idea of digital bank was mooted in Malaysia, according to its group managing director/CEO Cheong Chia Chou.
“For example, we were one of the eight successful applicants for an online money lending licence last year and we have now started rolling out digital credit products he told FocusM.
“Our consortium is the only wholly Malaysian consortium comprising two states and two listed companies. Having Sabah and Pahang as our partners also provide us unparalleled access to our target market which consists of the B40 segment and micro and small SMEs. “
BNM is expected to issue five digital banking licenses by 1Q FY2022 with an asset threshold of no more than RM3 bil for the first three to five years of operations.
Following the initial phase, the limit will be removed, and the digital banks will be subject to similar regulations as conventional banks.
Through its subsidiaries and affiliates, PUC has two core businesses which are omnichannel (comprising media and advertising) and a digital ecosystem known as Presto which encompasses e-commerce, e-loyalty aggregation, fintech and e-payment.
Elaborating on PUC’s uniqueness, Cheong said PUC’s advanced digital ecosystem, Presto, encompasses e-commerce, logistics, e-wallet, loyalty, financing and payment solutions which will form a natural complement to the digital bank concept by enabling it to drive innovation and boost digital transformation through its service offerings.
“BNM is looking for candidates which will fulfil its criteria of having local control – we are 100% Malaysian, have a track record of financial strength, compliance with regulations and is committed to serving the best interests of the country,” he stressed.
“We plan to provide user friendly banking apps which meets the financial needs and enhance the banking experience in this category (the unserved and underserved) and that of the B40 group.
“With high penetration of high-speed internet and smart phone ownership in these two states (based on research findings), this initiative has promising prospects.”
Given PUC’s two decades of experience and expertise in the realm of digital technology and services, Cheong reckoned that PUC is well-positioned to bounce back into profitability in due course.
“This resurgence will be driven by our strong digital propositions, robust partnerships and market fortitude that will help us achieve better horizons in FY2021.”
PUC found itself still languishing in the red for its 1Q FY2021with a net loss of RM5.47 mil (1Q FY2020: RM6.85 mil) while its revenue jumped 248% to RM5.54 mil from a mere RM1.59 mil in the previous corresponding period.
For its FY2020, the company saw its net loss widened to RM73.53 mil (FY2019: RM59.24 mil) while its revenue contracted to RM8.6 mil (FY2019: RM47.01 mil).
At 2.33pm, PUC was down 1 sen or 5.26% with 24.43 mil shares traded, thus valuing the company at RM225 mil. – July 30, 2021
