‘Digital bank license will enable robust digital strategies deployment’

KUALA LUMPUR: KAF Investment Bank Bhd expects the awarding of the digital bank licence to a consortium led by the investment bank would enable it to deploy robust digital strategies with its partners for a wider financial inclusion through multi-channel deliveries.

Deputy chief executive officer Thariq Usman Ahmad said a significant amount of effort is being put forward to modernise the banking industry and banks could no longer rely on outdated business models of operation.

“It must now seek new and innovative ways of reaching out to the underserved segments while at the same time increasing the accessibility, value, and affordability of financial services without compromising the security of the customer’s personal data,” he said in a statement.

Meanwhile, Bank Negara Malaysia (BNM) governor Tan Sri Nor Shamsiah Mohd Yunus said by adopting digital technology more widely for everyday transactions, Malaysia could increase opportunities for the society to participate in the economy by overcoming geographical barriers, reducing transaction costs and promoting better financial management.

“Digital banks can help individuals and businesses gain better access to more personalised solutions backed by data analytics.

“As businesses move online, digital banking also provides a safer and a more convenient way to transact,” she added.

On April 29, BNM announced the awarding of digital bank licenses to five consortiums including the consortium led by

KAF Investment Bank, which also consisted of Southeast Asia’s largest integrated car ecommerce platform Carsome and two BNM’s Fintech Regulatory Sandbox graduate -- Jirnexu and MoneyMatch.

Established in 1975, KAF Investment Bank is a welldiversified financial services group that serves customers in both shariah and conventional fixed income and money markets, investment banking, stockbroking, funds management and unit trusts and trustee services.