The central bank is expected to award the licences in the first quarter of 2022, she told a press conference to announce Malaysia’s fourth quarter (Q4) 2020 gross domestic product performance, which was held virtually today.

“In our policy paper, we have mentioned that the digital banks are expected to introduce innovative application of technology that can contribute to the financial well-being of Malaysians, with particular emphasis being given to the ability and prospect of applicants to address the financial needs of the underserved and unserved customer segments,” she added.

In December last year, BNM issued the exposure draft on licensing framework for digital banks that forms part of the series of measures adopted by the bank to enable innovative application of technology in the financial sector.

The exposure draft outlines the proposed framework for the licensing of digital banks to conduct either conventional or Islamic banking business in Malaysia.

The central bank has set June 30 as the deadline for submission of applications for the digital banking licences.