DIGITAL banks should serve the underprivileged, including those who do not have access to conventional banking systems, Saifuddin Nasution Ismail said.

The PKR secretary-general questioned if any of the five consortiums that received digital banking licences would help low-income earners such as hawkers, night-market traders and rural dwellers.

“I do not think the big consortiums will help people who do businesses at night markets, sell fried food or open stalls by the roadside in Baling, Padang Terap, Bachok or Hulu Terengganu,” said the Kulim-Bandar Baharu MP in a post on Facebook.

“There is also a consortium whose office is in Singapore and listed in the US. These digital banks’ goal should be helping the underserved and should emulate Grameen Bank or Amanah Ikhtiar’s model in assisting people left out of the conventional banking system.”

Bank Negara Malaysia yesterday announced the five successful applicants for digital bank licences.

The five are consortiums, of which three are licensed under the Financial Services Act 2013, namely a consortium of Boost Holdings Sdn Bhd and RHB Bank Berhad, a consortium led by GXS Bank Pte Ltd and Kuok Brothers Sdn Bhd, and a consortium led by Sea Limited and YTL Digital Capital Sdn Bhd.

The other two are licenced under the Islamic Financial Services Act 2013. They are a consortium of AEON Financial Service Co Ltd, AEON Credit Service (M) Berhad and MoneyLion Inc, and a consortium led by KAF Investment Bank Sdn Bhd.

Among the five, three are majority-owned by Malaysians, namely Boost Holdings and RHB Bank, Sea Ltd and YTL Digital Capital, and KAF Investment Bank.

Saifuddin also questioned the lack of bumiputera digital bank licence holders.

He said there are many capable bumiputera fintech companies that are more qualified to be granted a licence.

Twenty-nine banks had applied for the licence while Bank Negara had previously stated that only five “tech-heavy and tech-savvy” companies would be granted permission to set up shop.

Among the requirements is a minimum RM100 million in capital funds in the foundation phase, which must have reached RM300 million by the third year of operation. – April 30, 2022.