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Axiata reportedly bidding for digital banking licence with 11 partners

Axiata reportedly bidding for digital banking licence with 11 partners

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Axiata is in talks with 11 potential partners to bid for a digital banking licence together, according to The Edge Markets. It added that Axiata has been engaging the central bank since December, and “pursued by several parties” for partnership on the licensing bid.

Quoting Axiata's deputy chief executive officer Mohd Izzaddin Idris, The Edge Markets said the telco seeks to form the partnership and submit its bid in June. It is also reported that Axiata aims to set up the virtual bank by the second half of 2021. Mohd Izzaddin said it made sense to partner with banks even though it is not required to do so. He said it is because of banks' familiarity with the associated risks and the compliance framework, The Edge Markets said. A spokesperson from Axiata has confirmed the above details to A+M, and declined to provide further comments.

Axiata was among many companies reportedly looking to apply for a digital bank licence in Malaysia. Following the Malaysia central bank’s announcement to issue up to five licences to new online banks offering either conventional or Islamic banking, companies such as Grab, Razer, AirAsia, and CIMB were also reportedly vying for digital banking licences.

While AirAsia, Axiata and CIMB have declined to comment, Grab’s and Hong Leong Bank’s spokespersons said the companies are in the process of reviewing the guidelines set by the central bank. Additionally, Maybank’s spokesperson said that it has no current plans to apply for a digital banking licence as its existing banking license enables it to operate as a digital bank.

(Read more: AirAsia, Axiata and Grab reportedly eyeing digital banking licences in MY)

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