# Malaysia's Five Digital Banks: GXBank, Boost Bank, AEON Bank, KAF Digital and Ryt Bank

> Malaysia now has five BNM-licensed digital banks — three conventional and two Islamic — that operate entirely through apps with no branches, and your savings remain protected by PIDM up to RM250,000.

- Category: money-daily-life
- Language: en
- Status: published
- Updated: 2026-08-08
- Canonical: https://negaraku.md/en/money-daily-life/malaysia-digital-banks

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You can open a bank account in Malaysia today without once setting foot in a branch, without meeting an officer, and without any paper forms — all done in minutes through your smartphone. That is the promise of digital banks, a new category of bank licensed by Bank Negara Malaysia (BNM) that now serves millions of Malaysians.

But what exactly is a "digital bank," who holds the licences, and most importantly — is your money safe with them? This guide explains all five BNM-licensed digital banks and what sets them apart from ordinary banks.

## What is the difference between a digital bank and a traditional bank?

Legally, a digital bank is a full bank — not merely an e-wallet app. It is licensed under the same banking legislation as Maybank or CIMB, can take deposits, and can make loans. The key difference is how it operates: entirely through digital channels, with no physical branch network.

BNM issued the Licensing Framework for Digital Banks at the end of 2020, and on 29 April 2022 announced five successful applicants approved by the Minister of Finance. That framework sets out a "foundational phase" — the first three to five years — during which each digital bank is capped at total assets of no more than RM3 billion and must maintain capital of at least RM100 million unimpaired by losses. The cap is designed to allow BNM to observe performance and risk before these banks are permitted to grow larger.

The practical differences for you as a consumer:

- **Account opening** is done in the app through electronic identity verification (eKYC) — usually by scanning your MyKad and taking a selfie — not at a counter.
- **No branches** to visit; customer support is through the app, chat or phone line.
- **Mobile-first design**, often with features such as savings "pockets" or "jars," instant virtual debit cards, and automatic spending insights.

## Who are the five licensed digital banks in Malaysia?

BNM issued two types of licence: the **conventional** digital bank licence under the Financial Services Act 2013 (FSA 2013), and the **Islamic** digital bank licence under the Islamic Financial Services Act 2013 (IFSA 2013). Three of the five are conventional; two are Islamic.

| Bank | Licence type | Act | Consortium / main owner | Opened to the public |
|------|-------------|------|-----------------------------|----------------------------|
| GXBank | Conventional | FSA 2013 | GXS Bank & Kuok Brothers (led by Grab) | November 2023 |
| Boost Bank | Conventional | FSA 2013 | Boost Holdings & RHB Bank Berhad | 2024 |
| AEON Bank | Islamic | IFSA 2013 | AEON Financial Service, AEON Credit Service (M) & MoneyLion | 26 May 2024 |
| Ryt Bank | Conventional | FSA 2013 | YTL Digital Capital & Sea Limited | 25 August 2025 |
| KAF Digital Bank | Islamic | IFSA 2013 | KAF Investment Bank (consortium) | 2025 |

**GXBank** was the first to operate, beginning operations in September 2023. It ran a limited beta phase for 20,000 selected users in November 2023 before its app opened to the public at the end of November 2023. It offers savings accounts, a debit card with cashback, and credit products.

**Boost Bank**, a joint venture of Boost Holdings and RHB Bank, introduced savings-habit tools such as the "Savings Jar" and prioritises the mobile experience through the Boost app. It opened in phases in 2024.

**AEON Bank** made history as Malaysia's first Islamic digital bank when it launched to the public on 26 May 2024. It launched its Savings Account-i with a profit rate of 3.88% per annum (launch rate), a "Savings Pots" feature, and virtual and physical Visa debit cards-i.

**Ryt Bank**, the YTL–Sea consortium, launched on 25 August 2025 and promotes itself as an AI-powered bank. Its "Ryt AI" assistant — built on the local large language model ILMU — allows users to make payments and check spending through ordinary conversation in Malay, English and Manglish. Its savings account offers up to 4% per annum paid daily (launch rate).

**KAF Digital Bank**, the second Islamic digital bank, is led by KAF Investment Bank together with consortium partners, and began operations in 2025.

## Are your savings protected by PIDM?

Yes. This is the most important question, and the answer is clear: all five digital banks are **PIDM members** (Perbadanan Insurans Deposit Malaysia), the same statutory body that protects deposits at traditional banks.

Under PIDM's Deposit Insurance System, eligible deposits are protected **automatically and free of charge** up to **RM250,000 per depositor per member bank**. You do not need to register; the protection applies as soon as the account is opened.

A few important points:

- **Separate protection for conventional and Islamic accounts.** If you have a conventional account and an Islamic account, each is protected up to RM250,000 — a maximum total of RM500,000.
- **Deposits at different banks are protected separately.** The RM250,000 limit is counted per bank, not overall.
- **What is covered:** savings accounts, current accounts, fixed deposits, Islamic deposit accounts, and foreign currency deposits.
- **What is not covered:** investment products and investment accounts, unit trusts, shares, cryptocurrencies (such as Bitcoin), and gold or silver products.

In other words, in terms of savings safety, opening an account at GXBank or AEON Bank gives you the same legal protection as at any mainstream bank.

## Three conventional, two Islamic — what does that mean for you?

The conventional-versus-Islamic distinction is not just a marketing label; it determines how the products work.

**Conventional** digital banks (GXBank, Boost Bank, Ryt Bank) offer **interest**-based accounts — you earn an interest rate on your savings.

**Islamic** digital banks (AEON Bank, KAF Digital Bank) operate according to Shariah principles. Their accounts pay **profit** (not interest), are structured around Shariah-compliant contracts, and do not involve activities prohibited under Shariah. For consumers who want fully Shariah-compliant banking done digitally, these two banks provide that option.

Both types are subject to the same BNM prudential regulation and the same PIDM protection.

## How is opening an account different from an ordinary bank?

Because there are no branches, the whole process happens in the app:

1. **Download the bank's official app** from your phone's app store.
2. **Verify your identity (eKYC)** — usually scan your MyKad and take a selfie for live verification.
3. **The account is activated** — often within minutes, with a virtual debit card available instantly for online purchases.
4. **A physical card** can be requested and delivered to your address if needed.

Because they have no branch costs, digital banks often use those savings to offer higher savings rates, card cashback, or smart budgeting features — although these offers change over time and should be checked directly in the app.

## What is next

Digital banks in Malaysia are still in their early phase. All of them remain in BNM's "foundational phase" with the RM3 billion asset cap, and some credit products have not yet been fully rolled out to the public. This landscape will mature as these banks grow beyond the foundational phase.

To go further:

- **Compare current rates and fees** directly in each bank's app before opening an account — promotional offers change frequently.
- **Confirm PIDM membership status** through the [PIDM](https://www.pidm.gov.my/general/how-we-protect-you/dis) website if you are unsure about an institution's protection.
- **Check official BNM announcements** at [bnm.gov.my](https://www.bnm.gov.my/-/digital-bank-5-licences) for the latest licensing developments.

AEON Bank and KAF Digital Bank are the Shariah-compliant options, while GXBank, Boost Bank and Ryt Bank operate conventionally; Ryt Bank also highlights AI-based features. Each bank's features, rates and products differ and change over time, so compare current details in the respective apps before making a choice. Whichever you choose, eligible deposits are equally protected up to RM250,000.

## Sources

- Five successful applicants for the digital bank licences — https://www.bnm.gov.my/-/digital-bank-5-licences (Bank Negara Malaysia)
- Policy Document on Licensing Framework for Digital Banks — https://www.bnm.gov.my/-/policy-document-on-licensing-framework-for-digital-banks (Bank Negara Malaysia)
- Licensing Framework for Digital Banks (Policy Document PDF) — https://www.bnm.gov.my/documents/20124/938039/20201231_Licensing+Framework+for+Digital+Banks.pdf (Bank Negara Malaysia)
- Bank Negara Malaysia has issued the Policy Document on Licensing Framework for Digital Banks — https://www.trowers.com/insights/2021/february/bank-negara-malaysia-has-issued-the-policy-document-on-licensing-framework-for-digital-banks (Trowers & Hamlins)
- Deposit Insurance System — How We Protect You — https://www.pidm.gov.my/general/how-we-protect-you/dis (Perbadanan Insurans Deposit Malaysia (PIDM))
- AEON Bank Launched as Malaysia's First Islamic Digital Bank — https://www.aeonbank.com.my/about-us/media-centre/8 (AEON Bank (M) Berhad)
- Online Banking: GXBank, Malaysia's First Digital Bank, Officially Opens — https://www.crowdfundinsider.com/2023/12/217421-online-banking-gxbank-malaysias-first-digital-bank-officially-opens/ (Crowdfund Insider)
- Digital Bank: A Promising Start, With More To Unfold — https://www.bernama.com/en/news.php?id=2452561 (Bernama)
- Ryt Bank Debuts as Malaysia's First AI-Powered Digital Bank — https://fintechnews.my/53734/digital-banking-news-malaysia/ryt-bank-launch/ (Fintech News Malaysia)

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