Boost-RHB digital bank clinch official approval to commence operations

Boost Bank aims to pave the way for a new era of embedded finance

A consortium by RHB Banking Group and fintech Boost have clinched official approval from Bank Negara Malaysia and the Ministry of Finance (MOF) to commence operations as a digital bank.

The approval, effective 15 January, makes the consortium the first primarily Malaysian-owned digital bank to commence operations in the country.

Boost Bank by Axiata and RHB received regulatory approval ahead of the scheduledtimeline, following a thorough operational readiness review validated by BNM, RHB and Boost said.

“Having successfully demonstrated a robust and resilient foundational infrastructure for [Boost Bank] the consortium will advance into the alpha-testing phase involving internal employees, family, friends, and a selected group of customers,” Boost and RHB said in a joint-release.

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Boost Bank will progressively enhance its product propositions with a particular focus on embedded finance, with the goal of paving the way for a “new era of embedded finance” that is tailored to meet the needs of Malaysians.

Boost Bank has appointed Fozia Amanulla as the CEO of the digital lender.

"Rooted in the fundamental belief that everyone deserves a bright financial future, we are determined to propel Malaysia into an age of true financial inclusivity, by harnessing the untapped potential of embedded finance with our digital bank,” Amanulla said in a statement.

The Boost-RHB Digital Bank Consortium, in which Boost holds 60% equity, and RHB owns theremaining 40%, was amongst the 5 successful license applicants announced by BNM in April 2022.