Almost one year after being granted a digital Islamic banking license by the Malaysian finance minister, AEON Bank secured approval from Bank Negara Malaysia and the Ministry of Finance for its operational readiness.
The latest approval positions AEON Bank, an associate company of AEON Credit Service and AEON Financial Service Co (AFS) in Japan, as the first Islamic digital bank in Malaysia.
The bank is aiming to launch its phased roll-out during H1 2024, and will be extending financial services and products to both individuals and small businesses who would otherwise not have access to funding.
Financial literacy and education initiatives for individuals and businesses alike are in the pipeline, and parent company AEON Group is also planning to expand the digital bank’s services to retail and wholesale customers, as well as ecosystem partners such as auto dealers, merchants, suppliers, tenants and more.
The Islamic digital bank’s roll-out of its new app will begin with an exclusive beta-testing phase with AEON Group employees.
“Our core mission is to advance the promotion of financial inclusion and Islamic banking. As part of one of Malaysia’s most recognized retail household brands, we aim to provide accessible, inclusive and Shariah compliant digital banking solutions to our AEON Group of customers as well as to all Malaysians,” said Raja Teh Maimunah, CEO of AEON Bank.
AEON Credit Service and AFS had applied for a digital banking license in 2021 along with US fintech firm MoneyLion, which later in September 2022 withdrew itself from the consortium. Raja Teh was named CEO of the upcoming bank in December 2022.
The central bank had granted five digital banking licenses to five entities, two of them Islamic. KAF Investment Bank was the other Islamic digital banking licensee.