Razer Fintech keeps options open in licence bid

KUALA LUMPUR: Whether on its own or in a consortium, Razer Fintech is keeping its options open in vying for one of the five digital banking licences to be offered by Bank Negara Malaysia, its chief executive officer Lee Li Meng said.

Razer Fintech, which is mainly a gaming company, has partnered Berjaya Corp for its e-wallet Razer Pay in Malaysia that is accepted by more than 6,000 retail and food and beverage outlets.

“At the end of the day, it depends on Bank Negara’s requirement and regulation framework. So, we are keeping our options open.”

In Singapore, Razer Fintech is leading a consortium of Sheng Siong Holdings, FWD, LinkSure Global, Insigna Ventures Partners and Carro to bid for a digital full bank licence. It will take up a 60 per cent stake in Razer Youth Bank.

In Malaysia, besides Razer Fintech, other companies that are exploring bids for digital bank licences are Grab, AirAsia, Axiata and CIMB.

“Malaysia has a huge youth population, a market that is underserved,” he said, adding that Razer Fintech would “go after” those who did not have a bank account or had one that was inactive.

According to Bank Negara, as of 2018, out of the Malaysian adult population of 24 million, about 10 million did not use online banking while two million remained unbanked.

“There remains a segment of the population that even the local banks are trying to get traction but can’t as the product offerings don’t fit in, especially among the youth and B40.”

Virtual banks, Lee said, would offer more niche products without the legacy issues that were found in traditional banks, so that it could accelerate faster.

As for cyber security, which is critical and central for most businesses now, especially in the financial and banking services, he said Razer Fintech was steadfast in working with the best in the field.

A PwC report found that 74 per cent of Malaysians are interested in becoming customers of a virtual bank, and 77 per cent are interested in additional services provided by banks beyond the usual financial products.

About 45 per cent of the 1,517 respondents said they are looking for a virtual bank to offer a better mobile and digital experience.