Malaysia targets web-only bank license rules by end-2019

The central bank had preliminary talks with internet-only bank operators overseas.

Malaysia’s central bank is targeting the release of virtual bank licencing requirements by the end of 2019 in a bid to keep up pace with its regional peers, reports Bernama.

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According to Bank Negara Malaysia (BNM) governor Datuk Nor Shamsiah Mohd Yunus, they already had a briefing with chief executive officers of financial institutions regarding virtual banking. “We have had some interests and discussions with a few banks that have established virtual banks overseas, but these are at a very preliminary stage,” she said in a press conference.

With no need to set up branches, virtual banks can deliver the full suite of retail banking services which can range from extending loans, operating savings account, issuing cards and offering payment services through an app or a website.

Malaysia’s virtual banking push comes on the heels of its Asian peers such as Japan, Korea, Taiwan and Hong Kong that have also embraced the idea of delivering purely digital banking experiences.