KUALA LUMPUR (Aug 7): KAF Digital Bank Bhd, Malaysia’s Islamic digital bank backed by KAF Investment Bank, has received approval from Bank Negara Malaysia to start its operations from Aug 8.
The digital bank is operated by a consortium comprising KAF IB and four fintech and tech-based partners — Carsome, MoneyMatch, Jirnexu and StoreHub.
The approval follows the successful completion of the bank’s “Perintis Phase”, a controlled testing period involving selected participants. The consortium said user feedback during the pilot phase was instrumental in refining the bank’s product offerings and enhancing the user experience, according to its statement.
"KAF Digital Bank aims to redefine the banking landscape in Malaysia by leveraging cutting-edge technology to provide a comprehensive suite of financial products and services, including Shariah-compliant savings accounts, virtual debit cards and payment services," the statement read.
KAF Digital Bank is among five licensed digital banks in Malaysia, which were awarded their licences by BNM on April 29, 2022, following approval from the Ministry of Finance (MOF). The other four are GX Bank, Boost Bank — a digital banking venture formed by Axiata Group Bhd (KL:AXIATA) and RHB Bank Bhd (KL:RHBBANK); AEON Bank and Ryt Bank — a joint venture between Sea Ltd and YTL Power International Bhd’s (KL:YTLPOWR) wholly owned YTL Digital Capital Sdn Bhd.
GX Bank, led by Grab, was the first to go live on Sept 1, 2023, followed by Boost Bank which launched on Jan 15, 2024. AEON Bank, Malaysia’s first fully Islamic digital bank, began operations on May 26, 2024.