Malaysian fintech companies MyMy and Sukaniaga joined forces to form a Shariah-compliant digital banking consortium and bid for one of five digital banking license to be issued by the central bank BNM.

While the collaboration covers most requirements, the duo is seeking an additional strategic partner to further strengthen the consortium. As per a joint statement, the ideal partner will be a “tier-one” local company with strong financials and a large customer base for distribution.

This comes fresh off MyMy’s raising of US$2.4 million from Koperasi Tentera (KT) in September 2020, in what it claims to be the country’s largest seed round.

“Since receiving our investment from KT, 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,” stated Tunku Ahmad Burhanuddin, Chairman of MyMy.

Also Read: Meet Lucy, the digital bank platform that aims to empower female entrepreneurs

Sukaniaga, an associate company of Orion IXL, provides end-to-end solutions to digitise loan application processes. In 2020, Sukaniaga expanded its offerings to include a marketplace, digital wallet and a B2B digital platform.

As per the digital banking framework released last year by the BNM, 40 parties are reportedly eyeing the five licenses that will be issued by Q1, 2022.

Recently, McKinsey released a report with findings that successful digital banks in Asia typically operate under a consortia business model. The report discovered a consortia approach enables new banks to more easily assemble the ingredients required for a successful proposition, including customer loyalty and trust, advanced tech capabilities and analytics.

Image Credit: MyMy

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