Axiata partners with RHB to apply for digital banking license

by ASILA JALIL

Axiata Group Bhd and RHB Banking Group Bhd had entered into a memorandum of understanding (MoU) to apply for a digital bank license under the framework issued by Bank Negara Malaysia.

Axiata, via its subsidiary Boost Holdings Sdn Bhd, and RHB had signed a comprehensive Heads of Agreement to form a consortium for the application to increase competitiveness and accelerate the country’s digital transformation and financial inclusion ambition.

In a joint statement filed on Bursa Malaysia, the parties said Boost Holdings will hold a majority stake of 60% while RHB will hold the remaining 40% in the digital bank, subject to approval from the central bank.

It added Celcom Axiata Bhd has signed up as a major commercial partner on joint Go-To-Market activities with the digital bank on products and services which will benefit the customers of both parties.

As at 12.30pm, shares of Axiata rose 9 sen or 2.42% to RM3.81 with a market capitalisation of RM34.95 billion.