5 Digital Banks In Malaysia: What Makes Each Stand Out
Let’s find out where you can grow your savings.
- All five digital banks are fully licensed by BNM and PIDM-protected, insuring deposits up to RM250,000 per depositor automatically.
- Each bank targets specific users, from Grab's ecosystem fans to tech-savvy Malaysians, with Islamic and conventional options available.
Subscribe to our FREE Newsletter, or Telegram and WhatsApp channels for the latest stories and updates.
Malaysia’s digital banking scene has matured fast since Bank Negara Malaysia (BNM) handed out its first batch of digital banking licenses back in 2022. Today, there are five fully licensed players competing for your ringgit.
If you’re interested in opening a digital bank account to shore up your savings, here are five fully licensed digital banks in Malaysia and the rundown on what makes them stand out, and if you’ll be fully protected when things go sideways.
1. GX Bank
Backed by Grab Holdings, GXBank made history as the first digital bank to launch in Malaysia. It’s built around everyday convenience, especially for the underbanked, such as low-income earners, gig workers, and small business owners who’ve struggled to access financing from traditional banks. Through the app, eligible businesses can apply for a credit line of up to RM150,000 and get approved within minutes, while personal users can tap into instant micro-loans like FlexiCredit. GXBank’s Grab ecosystem integration also allows frequent Grab users to earn and manage rewards more seamlessly.
BNM approved: Yes, licensed under the Financial Services Act 2013.
PIDM protected: Yes, deposits are insured up to RM250,000 per depositor.
2. Boost Bank
A joint venture between Axiata’s Boost (one of Malaysia’s earliest and most widely used e-wallets) and RHB Bank, Boost Bank leans on the existing Boost ecosystem, such as cashback deals, bill payments, and merchant partnerships, while adding proper banking features like Shariah-compliant savings accounts. With RHB’s backing, it gives Boost Bank a level of institutional maturity that some newer digital banks don’t yet have, making it a comfortable pick for users who already use Boost for daily spending and want their savings under one roof.
BNM approved: Yes, licensed under the Financial Services Act 2013.
PIDM protected: Yes, deposits are insured up to RM250,000 per depositor.
3. AEON Bank
AEON Bank is backed by AEON Financial Service, AEON Credit Service Malaysia, and MoneyLion. One of its more standout features is the ability to create up to 20 separate savings “pots” for different goals, each of which can earn promotional interest. It’s Shariah-compliant and pairs naturally with an optional linked debit card. If you’re already an AEON loyalty member or shopper, the integrated ecosystem makes this an easy, low-friction choice.
BNM approved: Yes, licensed under the Islamic Financial Services Act 2013.
PIDM protected: Yes, deposits are insured up to RM250,000 per depositor.
4. Ryt Bank
The newest of the five, Ryt Bank, is operated by YTL Digital Bank Berhad, a joint venture between the YTL Group and Sea Limited (the Singaporean parent of Shopee and Garena). Launched in August 2025, Ryt Bank has positioned itself around AI-powered banking with features such as contextual financial guidance, multilingual support, and biometric authentication built into the everyday banking experience. It’s aimed squarely at tech-savvy and underbanked Malaysians, with SME and business banking features expected to expand through 2026. Ryt Bank is still the new kid on the block, but Sea’s proven fintech track record across Southeast Asia gives it a credible head start.
BNM approved: Yes, licensed under the Financial Services Act 2013.
PIDM protected: Yes, deposits are insured up to RM250,000 per depositor.
5. KAF Digital Bank
Led by KAF Investment Bank with consortium partners including Carsome and MoneyMatch, KAF Digital Bank is squarely focused on Shariah-compliant personal banking. Its Shariah savings account comes with a monthly transaction limit of RM20,000 and a daily limit of RM5,000, and account holders get a virtual debit card with no printed card number, CVV, or expiry date, a nice touch for reducing fraud risk. It currently only serves personal banking customers, with business accounts said to be in the pipeline. It’s a good choice for users who want an Islamic-first digital banking experience paired with built-in financial literacy tools.
BNM approved: Yes, licensed under the Islamic Financial Services Act 2013.
PIDM protected: Yes, deposits are insured up to RM250,000 per depositor.
All five digital banks hold full banking licences from BNM following rigorous evaluation and operational readiness processes. This makes digital banks distinct from e-wallets and other products like Touch ‘n Go’s GoPlus+, which are not PIDM-protected because they’re not deposit-taking institutions. Your money at the five digital banks listed above is covered by the same PIDM deposit insurance framework that protects traditional banks like Maybank and CIMB.
PIDM stands for Perbadanan Insurans Deposit Malaysia. In short, it provides users with a safety net for their bank deposits. For example, if the bank ever fails or goes bust, PIDM automatically pays back your deposits, up to RM250,000 per depositor per bank, without you needing to file a claim or do anything.
The protection covers normal savings, current accounts, and fixed deposits in licensed commercial, digital, and Islamic banks. However, it does not cover unit trusts, investment products, insurance policies, or e-wallets.
The benefits and features of the digital banks may change. Please research and check each bank’s app or official website for the latest terms before signing up.
Share your thoughts with us via TRP’s Facebook, Twitter, Instagram, or Threads.
