Top 4 Digital Bank Malaysia You Need to Know in 2024

In the rapidly evolving landscape of digital bank Malaysia, it has emerged as a significant player with the introduction of several innovative digital banks. This article delves into a comprehensive review and ranking of four prominent digital banks in Malaysia: GXBank, AEON Bank, Boost Bank, and BigPay. Each of these banks offers unique features and services aimed at enhancing financial inclusivity and providing seamless banking experiences to users. We will explore the strengths, weaknesses, and distinctive offerings of these digital banks to help you make an informed decision about which one best suits your financial needs.

GXBank Malaysia, powered by Grab, stands out with its integration into the Grab ecosystem and a user-friendly mobile app that offers competitive interest rates and rewards. AEON Bank, Malaysia’s first Islamic digital bank, provides Shariah-compliant financial services with a strong focus on serving the underbanked and promoting financial inclusion. Boost Bank, a collaboration between Axiata and RHB Banking Group, targets unbanked populations with its tiered interest rate system and integration with the Boost e-wallet. Finally, BigPay, launched by AirAsia, offers cost-effective international transactions and robust financial management tools, making it a favorite among frequent travelers.

Join us as we dissect the features, benefits, and potential drawbacks of each digital bank Malaysia, providing you with a detailed comparison to guide your choice in Malaysia’s burgeoning digital banking sector.

• GXBank – Pioneering the Future of Digital Banking in Malaysia

1. 1. • As Malaysia’s first fully digital bank, GXBank integrates advanced technology and the Grab ecosystem to offer seamless, secure, and inclusive banking services.

• AEON Bank – Malaysia’s Leading Islamic Digital Bank with Retail Integration

1. 1. • AEON Bank stands out as first Islamic digital bank Malaysia , providing Shariah-compliant financial services with a focus on financial inclusion and leveraging AEON’s extensive retail network.

• Boost Bank – Innovating Malaysia’s Digital Banking Landscape

1. 1. • Boost Bank, a collaboration between Axiata and RHB Banking Group, caters to the unbanked and underbanked with a unique tiered interest rate system and integration with the popular Boost e-wallet.

• BigPay – Revolutionizing Digital Payments and International Transactions in Malaysia

1. • BigPay, launched by AirAsia, offers a robust digital payment solution with low international transaction fees, detailed financial management tools, and integration with AirAsia’s ecosystem for frequent travelers.

Leading Digital Banks Malaysia: Detailed Reviews and Insights

1. GXBank – Pioneering the Future of Digital Banking in Malaysia

GXBank, powered by Grab, stands out as  first digital bank Malaysia, setting the stage for a new era in the country’s financial landscape. Since its inception, GXBank has aimed to deliver seamless, secure, and inclusive banking services, leveraging advanced technology and the robust ecosystem of its parent company, Grab. Here’s an in-depth look at what GXBank offers and why it might be the right choice for you.

Security and Regulatory Compliance

GXBank operates under the strict regulatory oversight of Bank Negara Malaysia, ensuring high standards of security and compliance. This gives users peace of mind knowing that their funds are protected and the bank adheres to stringent regulatory requirements​ .

User Experience and Interface

The GXBank mobile app is designed for ease of use, featuring a clean, intuitive interface that simplifies banking tasks. Whether it’s opening an account, transferring money, or managing savings, the app ensures a hassle-free experience. One of the standout features is the ability to earn daily interest on savings, making it easy for users to grow their funds effortlessly​.

Fees and Charges

GXBank is attractive for its low-fee structure. As of now, the bank waives many common fees, including the RM1 MEPS ATM withdrawal fee and the RM12 card replacement fee until the end of 2024. This makes banking with GXBank cost-effective compared to traditional banks​​.

Interest Rates and Rewards

One of GXBank’s key selling points is its competitive interest rate of 3.00% per annum with daily payouts. This feature is particularly beneficial for those looking to maximize their savings. Additionally, GXBank offers an unlimited 1% cashback on transactions made with their debit card, excluding certain categories such as cash withdrawals and e-wallet top-ups​.

Accessibility and Integration

This digital bank Malaysia makes it easy to access funds through both physical and virtual debit cards. However, the virtual card currently supports only online transactions, with plans to integrate with mobile wallets like Apple Pay and Google Pay in the future. This provides flexibility in how users can access and spend their money​.

Product Offerings

GXBank’s primary product offerings include savings accounts with daily interest payouts and a debit card with cashback rewards. The bank also emphasizes financial inclusion, aiming to serve underbanked populations by providing easy access to banking services without the need for a minimum deposit​ ​.

Customer Reviews and Reputation

Customer feedback on this digital bank Malaysia has been generally positive, highlighting the ease of account setup and the user-friendly app. However, some users have noted the need for improved features, such as broader merchant acceptance for payments and quicker cashback crediting times. Despite these minor setbacks, GXBank’s innovative approach and strong backing by Grab position it as a promising player in Malaysia’s digital banking sector​.

Conclusion

GXBank Malaysia is a compelling option for anyone looking to embrace digital banking in Malaysia. Its user-friendly app, competitive interest rates, and commitment to financial inclusion make it a strong contender in the market. While there are areas for improvement, such as expanding payment options and enhancing customer support, GXBank’s current offerings provide a solid foundation for those looking to switch from traditional banking to a more modern, digital experience.

For more information, you can visit the GXBank website or check out reviews for digital bank Malaysia on financial news platforms like Mr Money TV and Vulcan Post. Also check out this article about the comparison of GXBank and local bank in Malaysia to have a bigger picture.

2. AEON Bank – Malaysia’s Leading Islamic Digital Bank with Retail Integration

AEON Bank, Malaysia’s first Islamic digital bank, officially launched in May 2024, represents a significant milestone in the digital bank Malaysia sector. As a subsidiary of AEON Financial Service Co., Ltd., and associated with AEON Credit Service (M) Berhad, AEON Bank aims to provide comprehensive, Shariah-compliant financial services to all Malaysians. Here’s a detailed review of AEON Bank, focusing on its features, benefits, and overall performance.

Security and Regulatory Compliance

AEON Bank operates under the Islamic Financial Services Act 2013 (IFSA) and is regulated by Bank Negara Malaysia (BNM). This regulatory framework ensures that AEON Bank adheres to high standards of security and compliance, providing customers with peace of mind. Additionally, deposits are protected up to RM250,000 by Perbadanan Insurans Deposit Malaysia (PIDM)​.

User Experience and Interface

The AEON Bank app is designed for ease of use, supporting both iOS and Android devices. The registration process is straightforward, allowing users to open an account and apply for the AEON Bank Visa Debit Card-i directly through the app. This card is numberless for enhanced security and supports Visa Paywave​ ​.

Fees and Charges

Currently, This digital bank Malaysia offers competitive fee structures. The issuance fee for the AEON Bank Visa Debit Card-i is waived as part of the introductory offer. Local ATM withdrawals cost RM1 per transaction, while overseas withdrawals incur a fee of RM10 plus a 2% foreign transaction fee. These competitive rates make AEON Bank an attractive choice for users​​.

Interest Rates and Rewards

One of AEON Bank’s standout features is its profit rate of 3.88% per annum for its Savings Account-i and Savings Pot, available until August 31, 2024. This rate is calculated daily but credited monthly, providing users with consistent returns on their savings. Additionally, AEON Bank integrates with the AEON Points Programme, allowing users to earn and redeem points across AEON Group outlets and merchants​ ​.

Accessibility and Integration

AEON Bank supports DuitNow QR for easy fund transfers and payments. This feature enhances the bank’s functionality, allowing users to make cashless payments even before receiving their physical debit card. Future updates will include support for Apple Pay and Google Pay, further expanding the bank’s accessibility​.

Product Offerings

AEON Bank currently focuses on personal savings accounts with plans to introduce personal loans and small-business financing by the end of 2024. This phased rollout strategy aims to cater to the financial needs of both individuals and businesses, emphasizing financial inclusion​ ​.

Customer Reviews and Reputation

This digital bank Malaysia has received positive feedback for its user-friendly app and seamless integration with AEON’s retail ecosystem. Customers appreciate the high-profit rates and the convenience of earning AEON Points. However, as with any new digital bank Malaysia, there are areas for improvement, such as expanding merchant acceptance and enhancing real-time transaction updates​.

Conclusion

AEON Bank is a robust option for those seeking Shariah-compliant digital banking services in Malaysia. Its competitive profit rates, integration with AEON Points, and user-friendly app make it a compelling choice. As AEON Bank continues to roll out new features and services, it is poised to become a major player in Malaysia’s digital banking landscape.

For more detailed information, you can visit the AEON Bank website or check out reviews on platforms like Vulcan Post and SoyaCincau.

3. Boost Bank – Innovating Malaysia’s Digital Banking Landscape

Boost Bank, a collaborative venture between Axiata’s Boost and RHB Banking Group, is first home-grown digital bank Malaysia. Officially launched in June 2024, Boost Bank aims to provide accessible and innovative banking solutions, particularly targeting the unbanked and underbanked populations. Here’s a comprehensive review of what this digital bank Malaysia offers and its key features.

Security and Regulatory Compliance

Boost Bank operates under the stringent regulations of Bank Negara Malaysia (BNM) and the Ministry of Finance (MOF). This ensures that all deposits are protected up to RM250,000 by Perbadanan Insurans Deposit Malaysia (PIDM). Boost Bank also includes advanced security measures like device binding, account freezing options, and a 24/7 fraud hotline, ensuring users’ funds are secure​ ​.

User Experience and Interface

The Boost Bank app offers a seamless onboarding experience directly integrated with the Boost e-wallet. Users can open an account easily via the app, which is available on both the Apple App Store and Google Play Store. The app’s design prioritizes ease of use, allowing users to manage their savings and transactions efficiently​ ​.

Fees and Charges

Boost Bank currently offers competitive fee structures with various promotional waivers. For example, the upcoming debit card, expected to launch in July 2024, will have minimal fees during the initial rollout period. Additionally, transfers via DuitNow and QR payments are facilitated through the Boost e-wallet, making transactions convenient and cost-effective​.

Interest Rates and Rewards

Boost Bank offers a tiered interest rate system. At the base level, users earn 0.5% p.a. on their Savings Account and 1.5% p.a. on Savings Jars. For higher returns, users can upgrade to the Platinum President tier by maintaining a minimum deposit of RM2,000, unlocking 2.5% p.a. for the Savings Account and 3.2% p.a. for Savings Jars. Additionally, during the promotional period until August 31, 2024, Platinum President users can enjoy up to 3.6% p.a. on Savings Jars​ ​.

Boost Bank also integrates its rewards program with the BoostUP loyalty program. Platinum President users are automatically upgraded to the highest rank on Boost e-wallet, earning up to 3x Boost Stars for eligible transactions. This integration offers users significant benefits and incentives for regular use​.

Accessibility and Integration

Boost Bank is designed to be inclusive, allowing users without existing bank accounts to sign up for a limited Savings Account with a balance cap of RM10,000. To unlock more features, users need to verify their account by transferring a small amount from an existing bank account. This approach aligns with Boost Bank’s mission to serve the underserved communities in Malaysia​​.

Product Offerings

Currently, Boost Bank offers savings accounts and the innovative Savings Jars feature, which helps users save for specific goals. A debit card, expected to be released in July 2024, will further expand the bank’s product offerings. Future plans include additional financial services targeting micro SMEs, aiming to provide comprehensive financial solutions to a broader audience​ ​.

Customer Reviews and Reputation

Customer feedback highlights the user-friendly interface and the attractive interest rates offered by Boost Bank. However, some users have noted the complexity of unlocking higher interest tiers and the need for more seamless transaction experiences at partner merchants. Overall, Boost Bank’s commitment to financial inclusion and its integration with the Boost ecosystem are seen as significant advantages​.

Conclusion

Boost Bank stands out for its inclusive approach and competitive interest rates, making it a strong contender in Malaysia’s digital banking landscape. Its integration with the Boost e-wallet and extensive rewards program provide added value for users. While there are areas for improvement, such as simplifying the tier system and expanding payment options, Boost Bank’s innovative features and commitment to serving underserved communities position it well for future growth.

For more detailed information, you can visit the Boost Bank website or explore further reviews on platforms like SoyaCincau and Vulcan Post.

4. BigPay – Revolutionizing Digital Payments and International Transactions in Malaysia

BigPay, launched by AirAsia, is one of Malaysia’s prominent digital banking solutions, offering a comprehensive suite of financial services through its app and linked Visa or Mastercard debit card. Here’s a detailed review of BigPay, covering its features, benefits, and potential drawbacks.

Security and Regulatory Compliance

BigPay is regulated by Bank Negara Malaysia (BNM), ensuring it adheres to stringent verification protocols and transfer limits. The app incorporates two-factor authentication (2FA) and allows users to instantly freeze their accounts if their card is lost or stolen. These security measures provide peace of mind for users concerned about the safety of their financial transactions​.

User Experience and Interface

The BigPay app is designed to be user-friendly, offering a seamless experience for managing money, making payments, and tracking expenses. Users can easily top up their accounts, transfer money, and pay bills through the app. The app also provides real-time notifications and detailed analytics to help users monitor their spending habits​​.

Fees and Charges

BigPay offers competitive fee structures compared to traditional banks. Here are some key points:

• ATM Withdrawals: RM6 per transaction locally, RM10 or 2% of the amount for international withdrawals.
• Currency Conversion: Up to 1% fee on top of the network rate for international transactions.
• Account Fees: No monthly charges, but a RM20 deposit is required to get the card, which is later usable.
• Transfer Fees: Vary depending on the destination country, generally lower than traditional bank fees​ ​.

Interest Rates and Rewards

BigPay does not offer interest on account balances but compensates with various rewards and benefits:

• AirAsia Points: Users earn AirAsia points on every payment, enhancing value for frequent travelers.
• International Transactions: BigPay provides competitive exchange rates, often saving users money on international purchases compared to traditional credit cards​​.

Accessibility and Integration

BigPay is highly accessible, allowing users to make payments wherever Visa or Mastercard is accepted. The app also supports DuitNow QR payments within Malaysia, making it versatile for both local and international use. Additionally, BigPay offers virtual cards for online shopping, adding a layer of security by allowing users to cancel and generate new virtual cards regularly​ ​.

Product Offerings

BigPay primarily offers a digital wallet and a linked debit card. Users can manage their finances, make payments, and transfer money both locally and internationally. The app’s analytics feature helps users track their spending and budget effectively. Future updates may include expanded financial services, enhancing its value proposition​​.

Customer Reviews and Reputation

Customer reviews for BigPay are generally positive, with users appreciating the ease of use, security features, and cost savings on international transactions. Some users have reported issues with app updates and customer service response times, indicating areas for improvement​ ​.

Conclusion

BigPay is a robust digital banking solution for those looking for a cost-effective, secure, and user-friendly way to manage their finances. Its integration with AirAsia’s ecosystem adds extra value for frequent travelers, while the app’s comprehensive features make it a strong contender in Malaysia’s digital banking landscape.

For more information, visit the BigPay website or explore detailed reviews on platforms like Wise and Exiap.

How to Choose the Best Digital Bank in Malaysia: Key Criteria to Consider

As digital banking continues to rise in popularity, selecting the best digital bank in Malaysia has become a critical decision for many consumers. The convenience, lower fees, and innovative features offered by digital banks are enticing, but it’s essential to choose a bank that best fits your financial needs. Here are the key criteria to consider when selecting the best digital bank in Malaysia.

1. Security and Regulatory Compliance

Importance: Security is paramount when dealing with financial transactions. Ensuring that your chosen digital bank operates under strict regulatory oversight provides peace of mind.

What to Look For:

• Licensing: Check if the digital bank is licensed by Bank Negara Malaysia (BNM), the country’s central bank. This ensures the bank adheres to stringent security and operational standards.
• Security Features: Look for features such as two-factor authentication (2FA), encryption, biometric verification, and fraud detection mechanisms.

2. User Experience and Interface

Importance: A seamless, intuitive user experience is crucial for managing your finances efficiently.

What to Look For:

• App Design: The mobile app should be user-friendly with a clean and intuitive interface.
• Ease of Transactions: Features like easy fund transfers, bill payments, and account management should be readily accessible.
• Customer Support: Ensure the bank offers robust customer support, including chat, email, and phone support.

3. Fees and Charges

Importance: Hidden fees can erode your savings and reduce the overall benefit of using a digital bank.

What to Look For:

• Transparency: The bank should clearly disclose all fees, including ATM withdrawal fees, transfer fees, and maintenance charges.
• Low Fees: Compare the fees with other digital banks to ensure you are getting a cost-effective service.

4. Interest Rates and Rewards

Importance: Competitive interest rates can help grow your savings faster, while rewards can add extra value to your transactions.

What to Look For:

• Interest Rates: Look for high interest rates on savings accounts. Some digital banks offer daily interest payouts, which can be more beneficial.
• Rewards Programs: Check if the bank offers cashback, loyalty points, or other rewards for using their services.

5. Accessibility and Integration

Importance: Accessibility ensures you can easily use your funds, and integration with other financial services can enhance convenience.

What to Look For:

• ATM Network: Check the availability of ATMs and whether there are any fees for withdrawals.
• Integration: Ensure the digital bank integrates well with other financial services like e-wallets, payment gateways, and investment platforms.

6. Product Offerings

Importance: Diverse product offerings allow you to manage all your financial needs within one platform.

What to Look For:

• Variety of Accounts: Look for savings accounts, fixed deposits, and other types of accounts.
• Additional Services: Some digital banks offer personal loans, insurance, and investment options.

7. Customer Reviews and Reputation

Importance: Customer reviews can provide insight into the bank’s reliability and customer satisfaction.

What to Look For:

• User Reviews: Check online reviews and ratings from current users to gauge their satisfaction.
• Reputation: Look for any industry awards or recognitions the bank may have received.

Conclusion

Choosing the best digital bank Malaysia requires careful consideration of various factors. By focusing on security, user experience, fees, interest rates, accessibility, product offerings, and customer reviews, you can make an informed decision that meets your financial needs. As digital banking continues to evolve, staying updated on the latest offerings and innovations can also help you maximize the benefits of your digital banking experience.

For more detailed comparisons and reviews of specific digital banks, you can visit trusted financial news platforms and consumer review websites.