MAGAZINE IT (GROUP DIGITAL BANKING & SERVICES)

It said currently, BNM is proposing to issue up
to five licenses to qualified applicants to set up
digital banks that conduct either a conventional
or Islamic banking business.

BNM is looking for product EY said applicants should also
strategies that meet the needs of demonstrate capital strength to
the underserved and unserved safeguard the integrity and stabil-
banking segments, especially the poor. ity of Malaysia’s financial system in a time of
economic challenges amid Covid-19.

“They will need capital funds of mini-
mum RM100 million in the foundation phase and
RM300 million thereafter,” it said.

On business model, it said BNM expects
digital banks to encourage take-up by offering
world-class customer experiences, with critical
elements including simple products, pricing and
transparency, and a high degree of personalisa-
tion.

On technology, the central bank is look-
ing for technology strategies that should leverage
cloud and Application Programming Interface
(APIs), and have a high degree of automation,
artificial intelligence (AI) and machine-learning.
“Technology should also support work from
home,” it added. — Bernama

“And the central bank is likely to be
particularly interested in value propositions
from non-bank applicants that address niche
market needs,” it said in an article titled “EY
Insights: How Covid-19 Will Affect Digital
Banking in Malaysia” released today.

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SAPPHIRE JEGIR KHAN @ JANGIR
18010420

MOHD AMIRUL HAKIKI BIN ABU BAKAR
18010420

IGNORING TECHNOLOGICAL CHANGE IN A
FINANCIAL SYSTEM BASED UPON TECHNOLOGY
IS LIKE A MOUSE STARVING TO DEATH BECAUSE

SOMEONE MOVED THEIR CHEESE