Digital Banking Malaysia

​​​​In 2022, Malaysia started issuing digital banking licenses, allowing digital-only banks to enter the market. 

There were five licenses granted,  with the remaining two digital banks to be launched this year, in 2024. 

Digital banks licensed in Malaysia are required to comply under the Financial Services Act 2013 (“FSA”) or the Islamic Financial Services Act 2013 (“IFSA”). Since membership under Perbadanan Insurans Deposit Malaysia (“PIDM”) is compulsory, digital banks depositors are also protected. 

Digital banks are required to display the PIDM membership sign on their website or, if it’s a physical bank, at the entrance of their branches. Please be mindful, corporate coverage has a limit and there are certain types of deposits excluded from PIDM coverage.​