Bank Negara Malaysia awarded five digital bank licences in April 2022 under a framework issued at end-2020. Three run on conventional licences under the Financial Services Act 2013 — GXBank, Boost Bank and Ryt Bank — and two on Islamic licences under the Islamic Financial Services Act 2013 — AEON Bank and KAF Digital Bank. Unlike e-wallets, all five are full deposit-taking banks whose deposits PIDM protects up to RM250,000 per depositor per bank.
- BNM issued five digital bank licences on 29 April 2022 out of 29 applications.
- Conventional digital banks are licensed under the FSA 2013; Islamic ones under the IFSA 2013.
- GXBank was the first to open (2023); Ryt Bank and KAF Digital Bank were the last to launch publicly (2025).
- All five are PIDM member banks — deposits are protected up to RM250,000 per depositor per bank.
- During a foundational phase, each is capped at RM3 billion in total assets.
Who this applies to: Consumers comparing digital banks, and anyone wanting to understand how digital banks differ from e-wallets in Malaysia.
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You can now open a Malaysian bank account without ever setting foot in a branch, ordering a debit card, or filling in a paper form — and five licensed institutions are competing to do it entirely from your phone.
These are Malaysia’s digital banks: fully licensed, deposit-taking banks that operate without physical branches. They are not e-wallets, and the difference matters for your money.
Where did Malaysia’s digital banks come from?
Bank Negara Malaysia (BNM) laid the groundwork with its Policy Document on Licensing Framework for Digital Banks, issued at the end of 2020, which allowed for up to five licences. After receiving 29 applications, BNM announced the five successful applicants on 29 April 2022, with the approval of the Minister of Finance.
The licences split along two legal tracks:
- Conventional digital banks are licensed under the Financial Services Act 2013 (FSA) — GXBank, Boost Bank and Ryt Bank.
- Islamic digital banks are licensed under the Islamic Financial Services Act 2013 (IFSA) — AEON Bank and KAF Digital Bank, which operate on Shariah principles.
After winning a licence, each consortium had to pass an operational-readiness audit before BNM would let it open. That is why the launch dates are staggered across 2023, 2024 and 2025 rather than all at once.
Who are the five digital banks?
| Bank (legal entity) | Type / licence | Backers (per BNM) | Public launch |
|---|---|---|---|
| GXBank (GX Bank Berhad) | Conventional (FSA) | GXS Bank Pte. Ltd. & Kuok Brothers Sdn. Bhd. | 2023 — first to open |
| Boost Bank (Boost Bank Berhad) | Conventional (FSA) | Boost Holdings (Axiata, 60%) & RHB Bank (40%) | 6 June 2024 |
| AEON Bank (AEON Bank (M) Berhad) | Islamic (IFSA) | AEON Financial Service, AEON Credit Service & MoneyLion Inc. | 26 May 2024 — first Islamic |
| KAF Digital Bank (KAF Digital Bank Berhad) | Islamic (IFSA) | KAF Investment Bank–led consortium (Carsome, MoneyMatch, Jirnexu, StoreHub) | 8 August 2025 |
| Ryt Bank (YTL Digital Bank Berhad) | Conventional (FSA) | YTL Digital Capital & Sea Ltd | 25 August 2025 |
GXBank set the pace as Malaysia’s first digital bank to commence operations, in 2023. AEON Bank became the first Islamic digital bank open to the public, launching on 26 May 2024. Ryt Bank, launched by YTL and Sea, markets itself as an AI-powered bank; KAF Digital Bank became the country’s second Islamic digital bank when it opened for public onboarding on 8 August 2025.
How is a digital bank different from an e-wallet?
This is the most common point of confusion. A digital bank and an e-wallet both live on your phone, but legally they are very different animals.
- A digital bank holds a banking licence. It takes deposits, can pay interest or profit, and can lend. Its eligible deposits are protected by PIDM.
- An e-wallet (such as a Touch ‘n Go eWallet balance) is an e-money issuer used mainly for payments. It is not a deposit-taking bank, so the balance is not covered by PIDM deposit insurance.
In short: a digital bank is a bank. An e-wallet is a payment tool.
Is my money protected?
Yes — up to a limit. All five licensed digital banks are PIDM member banks. Perbadanan Insurans Deposit Malaysia (PIDM) protects eligible deposits — savings, current and fixed deposit accounts — up to RM250,000 per depositor per member bank if a bank fails. GXBank, Boost Bank and AEON Bank became PIDM members earlier in the rollout (reported between September 2023 and January 2024); KAF Digital Bank and Ryt Bank became covered in 2025.
Two extra safeguards worth knowing during the banks’ early years:
- BNM applies a foundational phase of three to five years to each new digital bank.
- During that phase, each bank’s total assets are capped at RM3 billion, keeping the newcomers small while regulators observe how they perform.
What’s next?
If you are choosing a digital bank, decide first whether you want a conventional (GXBank, Boost Bank, Ryt Bank) or Islamic (AEON Bank, KAF Digital Bank) account, then compare their live savings rates, cards and fees — these change frequently, so check each bank’s own app or website for current terms. Whichever you pick, confirm the PIDM member logo and remember the RM250,000-per-bank cap: spreading large savings across more than one member bank keeps every ringgit within protection.
How is a digital bank different from an e-wallet like Touch 'n Go?
A digital bank holds a banking licence, takes deposits and can lend; its deposits are PIDM-protected up to RM250,000. An e-wallet issues e-money for payments and is not a deposit-taking bank, so balances are not covered by PIDM deposit insurance.
Are my savings in a digital bank safe?
Yes, within limits. All five licensed digital banks are PIDM member banks, so eligible deposits (savings, current, fixed) are protected up to RM250,000 per depositor per bank if the bank fails.
Which is Malaysia's first digital bank?
GXBank was the first to commence operations, in 2023. AEON Bank was the first Islamic digital bank to open to the public, on 26 May 2024.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- GXBank's exact commencement-of-operations date in 2023 is stated as a year only; no GXBank-specific primary source is cited for the day/month.
- The two BNM pages (digital-bank-5-licences and the licensing-framework policy document) returned HTTP 403 to automated fetching; a human should open them to confirm they still state the five licence winners, 29 applications, the end-2020 framework, the three-to-five-year foundational phase and the RM3 billion asset cap.
- Exact PIDM membership commencement dates for each of the five banks (the article gives ranges/years, not per-bank effective dates).
Sources
- Five successful applicants for the digital bank licences — Bank Negara Malaysia
- Policy Document on Licensing Framework for Digital Banks — Bank Negara Malaysia
- Should You Trust Digital Banks With Your Savings? Here's How PIDM Keeps Your Money Safe — Perbadanan Insurans Deposit Malaysia (PIDM)
- KAF Digital Bank and Ryt Bank Now Covered Under PIDM's Deposit Insurance — Fintech News Malaysia
- AEON Bank Launched as Malaysia's First Islamic Digital Bank — AEON Bank (M) Berhad
- Boost Bank Officially Launches its Pioneering Embedded Digital Bank App to Malaysians — Boost Bank
- KAF Digital Bank Receives Bank Negara Malaysia's Green Light for Public Onboarding — KAF Digital Bank Berhad
- YTL, SEA launch Ryt Bank, world's first AI-powered bank — The Star
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 1 Aug 2026 | Approved and published. | — |