Aeon Bank (M) Bhd, a recipient of one of Malaysia’s five digital banking licenses, announced plans to commence operations and launch its banking application by the end of Q2 2024, news agency Bernama has reported.
Raja Teh Maimunah Raja Abdul Aziz, CEO of Aeon Bank, shared that the bank is set to become Malaysia’s first Islamic digital bank, targeting tech-savvy Generation Z consumers and micro, small, and medium enterprises (MSMEs) which are often overlooked by traditional banking due to their size.
The bank will initially offer savings accounts and related transactions for individual customers.
“We will launch a minimal viable product, and as we progress, additional products and financing options will follow,” Raja Teh Maimunah told Bernama in an interview.
To enhance user accessibility, Aeon Bank conducted beta testing of its application among employees of its parent group.
“Digitalisation is the way forward. More people have learned to use online banking; we should continue to promote it while reducing hard cash transactions,” Raja Teh Maimunah stated, acknowledging Malaysia’s advancements in digital finance.
Looking ahead to 2025, Aeon Bank plans to introduce services tailored to the business sector, aiming to bridge the RM90 billion funding gap between large corporations and MSMEs.
“These could be businesses like TikTok or Instagram shops. That is our target segment, and it aligns with our role in serving the underserved,” she explained, noting that traditional credit evaluation methods do not suffice for these businesses. “We have to look at different data sources, a task only a digital platform can handle.”
Additionally, Aeon Bank is actively working on implementing Apple Pay and expects to launch a debit card by year’s end.
Aeon Bank is a joint venture between Aeon Financial Service Ltd and Aeon Credit Service (M) Bhd, subsidiaries of Japan’s Aeon Group, which has been a significant retail and financial presence in Malaysia for 40 years.
Besides Aeon Bank, the other recipients of the Islamic digital bank licenses include a consortium led by KAF Investment Bank Sdn Bhd, Boost Holdings Sdn Bhd and RHB Bank Bhd, GXS Bank Pte Ltd and Kuok Brothers Sdn Bhd, and a consortium led by Sea Ltd and YTL Digital Capital Sdn Bhd.