MyMy, which aims to become the world’s first Shariah-compliant digital bank, and digital loan platform Sukaniaga Sdn Bhd recently confirmed their partnership which focuses on establishing a virtual banking consortium. They’re also planning to apply for one of the five digital banking licenses that will be provided in 2022 by Bank Negara Malaysia (BNM), the nation’s central bank.
MyMy and Sukaniaga Sdn Bhd noted that their collaboration should be able to cover most of the requirements outlined by the Bank Negara Malaysia. However, they’re currently considering one more partner to further strengthen their application for a virtual bank license in the Southeast Asian country.
MyMy and Sukaniaga Sdn Bhd have said that their ideal partner should be a Tier-1 Malaysian firm with solid financials and a large user base for distribution.
The companies also mentioned that they aim to revolutionize or transform banking in order to better serve Malaysia’s 6 million residents and the 100 million co-operative members across the ASEAN region.
In September of last year, MyMy had finalized one of the biggest Fintech seed funding rounds in Malaysia. The company acquired RM12 million (appr. $3 million) in capital from Koperasi Tentera (KT) and claims to have strong links in the co-operative sector.
Sukaniaga offers comprehensive solutions to digitize the loan application processes and has managed to secure a 15-year concession from 2018 to 2032. Last year, the company had focused on supporting a new marketplace, a digital wallet and also a B2B digital platform with ANGKASA as its main business partner. This extended its products to member co-operatives subscribing to ANGKASA’s accredited and recognized Salary Deduction System (SPGA).
The Malaysian reserve bank had provided the updated virtual banking framework in December 2020 where 40 different entities have submitted applications for only 5 available licenses that are expected to be issued in early 2022.
Tunku Ahmad Burhanuddin, Chairperson of MyMy, stated:
“MyMy’s ambition is to become the world’s first Shariah-compliant digital bank. Since receiving our investment from Koperasi Tentera, we have been working diligently on utilising digital financial services for the betterment of the co-operative community. Our technology and extensive digital banking experience, combined with Sukaniaga’s leading products and customer base, can together future proof the co-operative industry’s role, servicing over six million members.”
As covered recently, Bursa Malaysia, the nation’s stock exchange, is reportedly planning to work closely with Fintech firms and other strategic business partners in order to enhance its value proposition and improve its operational efficiency.