The list of successful applicants for the National Digital Bank (DBB) will be revealed in March, as revealed by the President of Bank Negara during the release of Malaysia’s Gross Domestic Product (GDP) data for the fourth quarter of last year.
Bank Negara received a total of 29 digital banking applications and will only issue a maximum of five digital banking licenses.
National Bank opened five digital banking licenses to eligible companies in January last year, and applications for digital banking licenses closed on June 30 last year.
The term digital banking refers to the full digitalization of banks and all their activities, programs and functions. Unlike traditional banks, digital banks no longer rely on a physical branch network, whether they have branches or not, but use the digital network as the core of the bank.
Digital banking can complement traditional banks, which now primarily serve people with good credit histories, while those without credit histories find it difficult to obtain loans from traditional banks. Therefore, digital banking will primarily help those who do not have a credit history, and digital banking will determine in other ways whether the person is eligible for a loan.
