7 days ago
KAF Digital Bank joins Malaysia's digital banking ranks, completing the first cohort
[KUALA LUMPUR] KAF Digital Bank began operations on Aug 8, marking the final entry from Malaysia's first batch of digital banking licensees approved by the country's central bank.
The roll-out followed the completion of KAF Digital Bank's screening phase, which involved a closed-group trial that tested its systems, security and user experience. Feedback from early adopters was used to fine-tune the lender's syariah-compliant offerings.
Chief executive officer Rafiza Ghazali said KAF Digital Bank aims to be a financial partner for all Malaysians, with a focus on empowering underserved communities through innovative banking services that are also aligned with syariah law.
To this end, the product offerings and services have been designed to be accessible to a wider audience, she added.
'Our goal is to empower every individual and community that we serve to achieve their financial aspirations and wealth creation, regardless of their economic standing or location,' she told The Business Times in an e-mail interview.
KAF Digital Bank's priorities over the next 12 months include refining the user experience on its mobile app, introducing a range of syariah-compliant investment products tailored to customers' values and risk profiles, as well as providing educational resources, workshops and digital content to boost financial literacy.
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Rafiza said the bank will also leverage data analytics to offer personalised financial planning tools for goals ranging from savings to retirement, while developing intuitive digital platforms to simplify customers' financial journeys.
The second Islamic digital bank in Malaysia
Rafiza Ghazali, chief executive officer of KAF Digital Bank, said the lender aims to be a financial partner for all Malaysians. PHOTO: KAF DIGITAL BANK
KAF Digital Bank is the second Islamic digital bank to go live in Malaysia, after Aeon Bank, which launched in May 2024. Its debut also marks the final step in bringing all five licence holders which obtained approval from Bank Negara Malaysia in April 2022 into the market.
GXBank , led by Grab, was the first to start operations, in September 2023. It was followed by Boost Bank, a joint venture between Axiata's Boost and RHB Banking Group, in January 2024. Ryt Bank , jointly owned by YTL Digital Capital and Singapore's Sea, launched last December.
KAF Digital Bank is backed by KAF Investment Bank and a consortium of local industry players, including Carsome, MoneyMatch, Jirnexu and StoreHub. The app's initial products are syariah-compliant savings accounts, virtual debit cards and payment services, among others.
Synergy with Carsome
Aaron Kee, Carsome Group's chief business officer, said the partnership with KAF Digital Bank will expand financing options, with a hire-purchase product for Carsome Certified Cars. This initiative will be a key part of the collaboration with Carsome Capital, the company's captive financing arm.
Targeted for a 2026 launch, the product intends to provide flexible and user-friendly financing solutions for underserved and overlooked segments, he added.
Carsome, Malaysia's first unicorn, is South-east Asia's largest integrated automotive e-commerce platform. It had more than 18 million monthly active users as at 2024, and manages over 14 million monthly visitors. It also works with more than 20,000 dealers across its network.
'By combining KAF's digital banking expertise with Carsome's platform, we aim to simplify the car financing process and provide more affordable options for a wider audience,' said Kee.
He noted that these solutions will give customers better financial management, more transparent services, and improved access to banking products, ultimately making car ownership and financial decisions more accessible to a broader range of people.
