PETALING JAYA: Boost, the fintech arm of Axiata Group Bhd, together with its consortium partner, RHB Banking Group (RHB), has received the official approval from Bank Negara and the Finance Ministry to commence operations as a digital bank, with effect from Jan 15, 2024.

In a joint statement, Boost and RHB said the consortium becomes the first primarily Malaysian-owned digital bank to commence operations with a pioneering embedded digital bank app in the local market, designed to meaningfully address financial inclusion gaps for the underserved and unserved.

“The Boost-RHB Digital Bank Consortium received regulatory approval ahead of the scheduled timeline, following a thorough operational readiness review validated by Bank Negara.

“Having successfully demonstrated a robust and resilient foundational infrastructure for the digital bank, now formally known as Boost Bank by Axiata and RHB (Boost Bank), the consortium will advance into the alpha-testing phase involving internal employees, family, friends, and a selected group of customers.”

In the lead-up to the public launch, the parties said the digital bank will progressively enhance its product propositions and refine the user experience to pave the way for a new era of embedded finance tailored to meet the diverse needs of all Malaysians.

“Spearheading the team is Fozia Amanulla, who was recently appointed chief executive officer (CEO) of Boost Bank. She leads an experienced digital bank team, encompassing expertise across technology, information security, product, risk and compliance, and more – leveraging fintech talent from Boost, banking expertise from RHB, and new capabilities from the wider industry.”

The Boost-RHB digital bank consortium, in which Boost holds 60% equity, and RHB owns the remaining 40%, was among the five successful licence applicants announced by Bank Negara in April 2022.