The continuing partnership between Payments Network Malaysia (PayNet) and Ant International (owner of Alipay+) has helped Malaysian SMEs during the first year of its existence, according to statements by the two companies.

In October 2023, the nascent partnership between PayNet and Ant International began to let Malaysian businesses accept Alipay+ transactions via DuitNow. DuitNow is a Malaysian QR code-based payment system that allows digital transfer of funds between participants using their bank details, eWallet or mobile. It’s a payment system that’s particularly suited to small transactions made at SMBs and has proved increasingly popular among a range of retailers from tiny street food vendors upwards.

In the last 17 months, the number of businesses and financial organisations that accept DuitNow has more than doubled. Of those, payments via Alipay+ comprised more than 80 percent of international inbound QR payments made from funds that originate outside Malaysia.

There was a 600% growth in revenue moved over the PayNet infrastructure in December 2024, compared to figures from the previous year.

Alipay+, owned by Ant International, went live on DuitNow QR in October 2023, which enabled payment via QR code by international travellers to Malaysian businesses. The number of Alipay+ payment partners that support DuitNow QR has more than doubled, with 15 international digital wallet apps currently supported, offering more options to customers wishing to spend in Malaysia but without the inconvenience of using new payment apps or network.

The partnership between Ant International and PayNet means users from countries where Alipay+ is popular are more likely to spend in Malaysia, which encourages visitors especially from China, Thailand, Singapore, Mongolia, the Philippines, and South Korea. While in the country, tourists simply use their digital wallet app as usual, getting the experience they’ve grown accustomed to in their home countries.

Currently, there are over 2.5 million DuitNow QR touchpoints in Malaysia, with the number set to increase as the payment network expands. The DuitNow facility is rapidly gaining popularity for foreign visitors, with the number of Alipay+ transactions made via DuitNow QR growing by an average of 50% every quarter in the last two years. Alipay+ is at present the largest contributor to cross-border QR payments made in Malaysia by overseas visitors.

Gary Yeoh, Chief Marketing Officer of PayNet, highlighted Alipay+ as a major factor in the expansion of Malaysian businesses accepting cross-border payments. “Our partnership […] has significantly enhanced cross-border payment acceptance for local merchants, helping them tap into a growing wave of global travellers. With Alipay+, […] DuitNow QR is empowering SMEs to compete on an international scale, reinforcing Malaysia’s position as a premier travel and shopping destination.”

Tourism is an important element of the Malaysian economy, with Kuala Lumpur, Malacca, Penang the most visited cities last year. The ‘Visit Malaysia 2026 campaign’ hopes to attract 35.6 million visitors to the country next year, up from over 25 million in 2024 – nearly a 50% growth in two years.

“We’re just getting started, and in the years ahead, we can make an even greater impact together, positioning Malaysia as a global tourism hub and generating more growth for Malaysian businesses,” said Edward Yue, General Manager for Southeast Asia, Australia and New Zealand, Ant International.

PayNet operates Malaysia’s national retail payments infrastructure, including services such as DuitNow, JomPAY, FPX, MyDebit, MEPS, and IBG. DuitNow QR is part of a regional cross-border payment initiative and is interoperable with QR payment networks in Singapore, Thailand, and Indonesia.

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NTT DATA, a digital business and IT services provider, has released a new research report exploring the use of generative AI in the global banking sector. The report, ‘Intelligent banking in the Age of AI,’ highlights a division in the banking industry’s views on the impact of GenAI technology. Although GenAI’s adoption continues to increase in the banking sector, financial institutions are divided on whether it leads to improved efficiency and productivity, or helps reduce operational IT costs.

According to the report, 50% of banks believe GenAI can be used to improve productivity and efficiency, while 49% consider it beneficial for reducing IT expenditure.

In theory, the banking sector benefits from a wealth of opportunities through GenAI with its power to introduce advanced intelligence into all aspects of the banking industry. It has already proven beneficial in optimising some aspects of the banking ecosystem from handling transactions to operating apps and websites.

According to NTT DATA’S research, 58% (6 in 10) organisations have already implemented GenAI, up 13% from 2023, marking a growing trend of banking institutions adopting advanced AI technologies in their operations.

Head of Global Marketing & Communications at NTT DATA, Robb Rasmussen, commented on the impact GenAI can have on the banking industry, as well as the challenges faced when adopting such technology.

“Generative AI represents a pivotal moment for the banking industry. While the potential benefits are enormous, the challenges of implementing GenAI are complex and varied, requiring careful navigation and a structured approach,” he said.

According to Rasmussen, ROI is important when considering the high costs of GenAI implementation.

“Many banks will be expecting GenAI to drive long-term savings by automating IT tasks, improving operational efficiency, and creating competitive advantages, but it’s important to note that achieving meaningful ROI requires a clear strategy, tailored implementation, and robust governance at the same time.”

While achieving a ROI is a major focus for banks when integrating GenAI, there is still a divide in how banking leaders view the most effective strategies for using the technology. Historically, banks have struggled to improve productivity, and GenAI is seen as a potential solution. However, only half of banking leaders believe it will be effective in solving productivity issues, according to NTT DATA’s report.

Similar to the 49% who don’t believe GenAI can improve IT cost optimisation, there seems to be a split in perspectives, emphasising uncertainty or differing views in the banking sector on how beneficial GenAI will be in achieving these goals.

Robb Rasmussen spoke of the challenges and strategies for successfully implementing GenAI, saying, “It is clear that the ability to balance innovation with fiscal responsibility will define success for banks. However, many banks are lacking in maturity when it comes to this technology and are unsure where to start.”

Rasmussen suggests that partnering with systems integrators, of which NTT is one, can help banks navigate the complexities of GenAI adoption. He said it could be “a good starting point, allowing [banks] to access the latest knowledge while ensuring compliance with industry regulations.”

NTT DATA’s research was conducted globally, surveying 810 financial leaders from all global banking markets. The disparity regarding the effectiveness of GenAI can be seen worldwide, with 59% of US banks being more focused on reducing IT and operations budgets, and 47% aiming to reduce or minimise operations costs.

In contrast, just 43% of banks in Europe are overly concerned with IT budgets, while only 36% are focused on reducing operational costs. Productivity remains a factor for European banks, with 46% highlighting it as a priority. Nevertheless, compared to their US and APAC counterparts, Europe’s banks place less emphasis on improving productivity through GenAI.

The report’s data reveals differing strategies for realising the benefits of GenAI in certain organisations and regions. 51% of the respondents said they focus on collaboration between humans and AI, with 47% taking a hybrid approach and have systems already in place.

That being said, 28% of the banks surveyed aim to achieve “full automation” of certain tasks, eliminating the need for any manual input or human intervention. The hope is that this will streamline processes and improve efficiency.

On a global scale, the full automation of tasks in the banking sector also shows mixed opinion. In Europe and the UK, around a quarter of banks are planning on fully automating processes, while around a third of US and Japanese banks have the same goal.

Mass implementation of GenAI in the banking sector is underway, but challenges remain. While some banks are seeing the early benefits of the technology, others are struggling with certain hurdles, like implementation complexities, and ensuring a clear ROI. As NTT DATA’S report suggests, strategic approaches and collaborations are required to ensure the positive impact of GenAI in the sector.

See also: Using serverless solutions to harness generative AI capabilities

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

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OCBC has appeared as the first bank in Singapore to offer bespoke tokenised bonds to corporate accredited investors (corporate AIs) – businesses with net assets exceeding SG$ 10 million. The tokenised bonds are tailored to match any client’s preferred tenor and yield. Once structured, bonds are minted and transferred directly to a digital wallet created on OCBC’s asset tokenisation platform.

The innovation aligns with Singapore’s broader push to scale the use of tokenised assets and reflects the Asia-Pacific (APAC) region’s leadership in digital asset adoption. In early 2024, APAC accounted for 29% of global digital currency transactions, surpassing North America (19%) and Western Europe (22%). Countries like Singapore, Hong Kong, and Japan are at the forefront of the trend, with adoption from individuals and businesses.

A recent study indicated that about half of wealthy Asian investors own cryptocurrency, while nearly half of APAC organisations are actively working on blockchain and digital asset projects. Some major banks in Hong Kong, including UBS and HSBC, are enabling high-net-worth clients to trade cryptocurrency ETFs.

Challenges and opportunities in APAC

Despite the rapid growth of digital assets in APAC, the regulatory landscape remains uneven across the region. Progressive hubs like Singapore and Hong Kong are fostering innovation with forward-thinking regulations, while countries like China have imposed stricter measures, including bans on cryptocurrency transactions.

The OCBC asset tokenisation platform simplifies the bond lifecycle, encompassing creation, minting, ownership transfers, custody, and redemption through token burning. The bank plans to extend this facility beyond fixed-income assets, perhaps tokenising structured products, funds, and other assets. Its policies align with a broader trend in APAC, where financial institutions can meet rising demand for digital asset products like custody solutions, trading platforms, and investment vehicles.

In November 2024, OCBC completed its first tokenised bond transaction with a mid-sized Singaporean manufacturing company. To diversify its portfolio and move away from fixed deposits, the client opted for a bond with a tenor of less than a year.

The entire transaction was settled on the same business day, marking a significant improvement over the typical five-day settlement period for conventional bonds. The success demonstrated the potential for greater acceptance of tokenised assets among corporate investors.

APAC’s leadership in global digital asset adoption provides a unique opportunity for institutions like OCBC. Tokenisation has the ability to transform the financial world. It improves accessibility, liquidity, and transparency while unlocking new opportunities for innovation.

Want to learn more about blockchain from industry leaders? Check out Blockchain Expo taking place in Amsterdam, California and London.

Explore other upcoming enterprise technology events and webinars powered by TechForge here.

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Hyderabad-based identity verification startup Equal has raised $10 million in Series A funding, positioning itself at the forefront of the fight against digital fraud in India. The investment, led by Prosus Ventures at an $80 million post-money valuation, comes as India grapples with cyber fraud losses projected to exceed $14 billion—approximately 0.7% of the country’s GDP—in 2025.

Founded in 2022 by Keshav Reddy and former Swiggy engineering director Rajeev Ranjan, Equal emerged at a critical time as India faces mounting challenges in digital fraud. The startup has quickly established itself as a critical player in fintech security, offering solutions that streamline know-your-customer (KYC) requirements, fraud prevention, and regulatory compliance.

Equal’s platform connects over 50 identity databases and thousands of API providers, helping businesses struggling with digital verification and compliance. The comprehensive approach has resonated strongly with the market, as evidenced by the company’s impressive client portfolio, which has developed in just two years of operations.

The startup has successfully onboarded over 350 customers, including industry giants such as State Bank of India, HDFC Bank, ICICI Bank, Reliance Jio, Airtel, Uber, and Zoom. This rapid adoption by major financial institutions and technology companies demonstrates the urgent market need for efficient identity verification solutions.

Equal recently acquired a stake in account aggregator OneMoney to enhance its service offerings. The acquisition combines Equal’s identity verification capabilities with OneMoney’s consent-based financial data-sharing infrastructure.

The Indian market for identity verification is becoming increasingly competitive, with established players like Perfios (backed by Warburg Pincus and Teachers’ Venture Growth), IDfy (backed by TransUnion), and Bureau (backed by GMO VenturePartners) also operating in the space. 

However, Equal differentiates itself by positioning itself as an aggregator, even partnering with some competitors to provide more comprehensive solutions. A practical example of Equal’s impact comes from Upstox, one of its early customers. The trading platform processes approximately 350,000 transactions monthly through Equal’s system. 

According to Upstox’s CEO Ravi Kumar, who has also invested in Equal, the platform’s cost-effectiveness and high uptime make it his preferred choice over building similar technology in-house. The fresh capital injection will scale Equal’s operations, expand its product suite, and help it forge strategic partnerships. 

The expansion comes at a crucial time when the Indian government is introducing new regulatory requirements to combat fraudulent digital transactions, often placing additional technical burdens on businesses. Overall, the startup’s growth trajectory aligns with India’s broader digital transformation as the country—now the world’s most populous nation and second-largest internet market after China—becomes increasingly digitally active. 

While beneficial for economic growth, the country’s digital shift has also exposed vulnerabilities in the financial system, including threats to government-backed systems like Aadhaar. Equal’s approach to addressing these challenges through technology and partnerships represents a step forward in India’s fight against digital fraud. 

By providing businesses with tools to maintain regulatory compliance and streamline operations, Equal is positioning itself as a major player in India’s evolving digital security landscape.

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IDE: What you need to know

Intelligent data extraction involves the use of technologies like AI and ML (machine learning), along with NLP (natural language processing), to process high-volumes of unstructured and structured data. Unlike traditional methods, it can improve performance and learn with time while always being more effective and efficient.

The application of IDE in the financial sector

The financial sector includes banking, insurance, investments, and other asset management products. Each one of these products leads to the creation of data in the form of transaction history, customer-vendor interactions, market feed, and regulatory filings. Here is what IDE is changing:

Better customer satisfaction

The primary aim of financial products is to provide a customer-centric experience. Using IDE, the data collected from various points of interaction can be used to provide a 360-degree view of customer behaviour and preferences. This can help provide proactive assistance, everything from offering small business loans to great vendors to discounts on a spouse’s birthday. It can also play a crucial role in providing better assistance and timely response to the customer queries.

Safer compliance and reporting

The financial sector is heavily regulated – although the same cannot be said about other industries. Spanning multiple products and overlapping jurisdictions, dealing with regulation can become time-consuming and complex. Using IDE, companies can easily extract the relevant data from any document to ensure accuracy and efficiency in reporting. IDE also helps to identify patterns that could indicate fraudulent activities, thus aiding risk management and compliance with laws like GDPR, KYC, and AML.

Better decision making

By analysing a wealth of market data, IDE tools can create actionable insight into how the company should invest, which risks it should take, and what approach to take for strategy. The extraction of real-time data allows the financial analyst to respond on-the-fly and stay ahead of market trends.

Implementing IDE in financial services

The implementation process for Intelligent Data Extraction in finance should go through the following general steps:

• Identifying data sources: The financial service provider must understand what sources of data they are interested in. It might range from internal databases, social media, and news outlets to banking transaction logs.
• Choosing the right tools: The next step is to analyse the IDE tools available to the financial organisation and the feasible implementation prospects. Scalability, ease of integration, and adaptability to different types of data can be considered.
• Data integration: The IDE tool will become a part of the financial service’s IT infrastructure and be able to send and receive data without bottlenecks.

Training the System: The financial service provider can use historical data to train the IDE system to learn from historical data to avoid any future issues.

• Monitoring and maintenance: It is important to continuously monitor the performance of the solution and make changes that improve precision.
• Ensuring security and privacy: Make sure the use of data in the new system is secure and that data will be safe and private as much as possible.

Conclusion

Intelligent Data Extraction facilitates efficiency, makes compliance easier, adds to customer satisfaction, and helps decision-makers act on empirical data. As technology continues to evolve, financial institutions that embrace IDE will find themselves ready to capitalise on the data-driven opportunities of the future.

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In an age where traditional wire transfers and steep fees once hindered international money transfers, the landscape of financial transactions has undergone a remarkable transformation. With the emergence of borderless banking platforms such as Wise, sending money across borders has been redefined. As this fintech trailblazer continues to disrupt the industry, it’s imperative to unravel the narrative behind Wise and understand its profound impact on travel and financial experiences in Malaysia and across the globe.

Born out of a desire to challenge the status quo of traditional banking and tackle the opaque and often exorbitant fees associated with cross-border transactions, Wise has emerged as a disruptive force in the digital finance arena. Its innovative platform has empowered millions of individuals and businesses worldwide to navigate the complexities of international finance with unparalleled transparency and ease.

Through an insightful interview with Lim Paik Wan, Country Manager of Wise Malaysia, we delve into how the company harnesses the power of technology to reshape the travel and savings landscape in Malaysia and beyond.

The digital renaissance has brought transformative shifts in travel. How do you see technology shaping every aspect of travel beyond being a mere tool to smoothen the process?

Technology has now made travel more accessible and has allowed consumers to personalize their holidays, as people now take to blogs and social media platforms for inspiration. Additionally, consumers are now accustomed to instant and seamless experiences, with everything readily available through a few taps on their smartphones. This seamless digital connectivity has also changed how people make transactions for their travels. 

In years past, travelers needed to exchange cash physically and were usually required to pay for most meals and excursions in cash. Today, contactless payment options are offered almost everywhere, making it easier and safer for consumers to make international transactions. 

Even how consumers plan their travels has changed, with hotel bookings and flights done through travel apps. However, consumers still face challenges as the world transitions to a largely cashless society. A common one is a general unfamiliarity with international transaction fees, causing them to spend more than anticipated or budgeted for. Issues like these have led fintech providers to create solutions to make these processes smoother and more manageable. 

How do Wise’s digital cards and contactless payment solutions like Apple Pay and Google Pay enhance travel safety?

Today, contactless payment methods are widely accepted in many countries, lessening the burden of carrying large sums of cash. However, when used internationally, most traditional credit or debit cards tend to come with additional fees and hidden costs. Providers like Wise offer users the ability to hold money in over 40 currencies and make transactions at the mid-market exchange rate with no markups, helping travelers save money on international transactions. 

This relieves users of having multiple traditional cards, where they would have to bear the cost of foreign transaction fees and interest fees. Wise’s smart technology automatically converts the currencies you hold in your account for you, which have the lowest conversion fee; the card even allows users to withdraw money from ATMs with low fees while traveling.

Another great thing is that Wise users can start spending immediately with its digital cards, available instantly upon request in the app. Users can get up to 3 digital cards with different card details for an extra layer of protection. These digital cards can be deleted anytime, so customers can generate new card details when they need them. 

The cards can also be added to Apple Pay and Google Pay — these contactless payment methods are powered by NFC technology, which is generally more secure. Additional features on the account allow users to track their spending in real-time, ensuring smoother user and travel experiences. 

How has the pandemic impacted Wise’s services, particularly regarding international travel and cross-border transactions?

Digital adoption during the pandemic created the expectation for instant and real-time processes and a trend of contactless payment options. This has dramatically impacted the Malaysian market, as e-wallets and mobile payments are now expected payment options that businesses should offer. Additionally, we found that Malaysians are spending more time online, adopting more

international lifestyles, and traveling more frequently, leading to an increase in cross-border spending and shopping. 

These trends suggest a need for efficient cross-border payment solutions that offer faster, cheaper, and transparent international payments. Wise addresses these needs with its multi-currency account, empowering Malaysian consumers to seamlessly navigate global payments and lifestyles with no hidden fees and complete transparency. 

The recent launch of Wise on Apple Pay and Google Pay in Malaysia is part of our commitment to making international transactions more convenient and accessible for customers. A few other ways Wise is providing more convenience is by offering our users the ability to send money to popular e-wallets in the region, including Touch’nGo in Malaysia, GrabPay in the Philippines, and ShopeePay in Indonesia — being able to offer multiple money movement options makes moving money across borders even more convenient.

How does Wise promote financial literacy and awareness among users regarding currency exchange and international transactions?

A crucial part of our mission has been advocating for transparency in foreign exchange fees, empowering people with knowledge and insight into their transactions. This is reflected in our services and is why we support transparent and fair cross-border transactions. With Wise, all fees are transparently displayed to customers when they set up a transaction. 

Customers pay a single upfront fee, and the exchange rate they get is the one you see on Google with no markups or hidden charges. People also gain visibility into what’s happening to their money from start to finish when making cross-border payments, which includes the actual total cost to make the payment.

Wise also offers price comparison tools in the app, which allows our customers to compare the exchange rates and fees across a range of currency routes to make better decisions when choosing their preferred provider.

What upcoming advancements can users anticipate from Wise, and how will they improve travel and financial experiences?

Not to give too much away, but we are always looking to bring globally available features to Malaysia, such as Wise Business and Wise Platform. Wise Business accounts are for businesses that want to grow and operate internationally, making it easier to manage their finances across borders, such as paying overseas vendors and employees or receiving funds from clients.

Wise Platform is our infrastructure offering, which enables financial institutions and businesses to incorporate our global payment network into their platforms. As Wise operates globally, we’re always looking to see what would benefit Malaysian customers and work to solve their pain points. 

Lastly, in the rapidly changing landscape of digital finance and travel, how does Wise stay adaptive and responsive to its diverse user base’s dynamic needs and preferences?

At Wise, we constantly listen to our customers, and our goal continues to be making Wise as convenient, low-cost, fast, and transparent as possible. As more Malaysians look for cross-border opportunities, it’s vital that our users can use Wise to broaden their lifestyles globally.

Looking ahead to 2024 and beyond, we’ve got a number of exciting things coming up in our product roadmap to improve the speed, convenience, and cost of cross-border payments for our customers around the world.

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Paytm, short for “Pay Through Mobile,” began its journey with a revolutionary idea – letting users make cashless transactions through their mobile phones. But it wasn’t until the whirlwind of India’s 2017 demonetization that Paytm soared to new heights. That year, Prime Minister Narendra Modi’s bold move shook up the cash-dependent economy, compelling many individuals and countless small merchants to seek alternatives. Amid the chaos, Paytm’s wallet emerged as the straightforward solution, drawing a massive influx of users. 

Paytm emerged as a prime beneficiary of demonetization, witnessing a meteoric rise from 140 million users in October 2016 to a staggering 270 million by November 2017 following the demonetization program. The winds of change propelled Paytm to the forefront of India’s digital financial revolution. It has become a pioneering force, transforming how millions transact and engage with digital finance. 

The platform provided a versatile and convenient solution for individuals and businesses, from small grocery purchases to utility bill payments. In short, Paytm’s success during demonetization contributed to the broader acceptance of mobile wallets in India. The platform’s simplicity and strategic marketing campaigns played a significant role in shaping the narrative around digital wallets as a reliable alternative to traditional currency.

What is happening with Paytm in India now?

Founded in 2010 by Vijay Shekhar Sharma, Paytm initially gained prominence as a mobile wallet but swiftly evolved into a comprehensive financial ecosystem. Over the years, Paytm has diversified its services, expanding beyond mobile wallets to offer various financial products. The platform now provides services ranging from digital payments, mobile recharges, and bill payments to insurance, wealth management, and even digital gold investments. 

This diversification has positioned Paytm as a one-stop shop for various financial needs. By 2017, Paytm received approval from the Reserve Bank of India (RBI) to launch Paytm Payments Bank, a significant milestone in its journey. The Payments Bank allowed users to open savings accounts with zero balance requirements, seamlessly integrating banking services within the Paytm app. The bank is restricted from lending and can accept deposits of up to 200,000 Indian rupees. 

For context, Paytm Payments Bank is primarily owned by Paytm (One 97 Communications), with a 49% stake, while the remaining 51% is held by Paytm’s chief executive and founder, Vijay Shekhar Sharma. The bank serves as a crucial banking partner for Paytm, holding funds from popular digital wallets within its operations. 

All 330 million wallet accounts under the parent company are housed within Paytm Payments Bank, making it the repository for the money held in these wallets. However, It is noteworthy to know that on top of its immense success, Paytm was not short of challenges. Most recently, in a significant setback for one of India’s largest payment firms, the RBI has directed Paytm’s payments bank subsidiary to cease accepting new deposits in its accounts or popular wallets starting in March. 

So what exactly won’t be working on PayTM after 29th Feb then? pic.twitter.com/rNJvRPAJhc

— Sunderdeep – Volklub (@volklub) February 4, 2024

According to a report by Reuters, India’s central bank said it took action because of “persistent non-compliance and continued material supervisory concerns in the bank,” which it did not specify. The restriction, effective from March 1, 2024, follows a previous limitation imposed two years ago, preventing Paytm Payments Bank from onboarding new customers.

Paytm Payments Bank was restricted from adding customers in March 2022 due to similar concerns but continued doing business with existing customers. It has been told to wind down most of its businesses this month. Moreover, local reports indicated that the banking regulator consistently raised concerns over various issues. 

Sources reveal that apprehensions regarding money laundering and substantial financial transactions, amounting to hundreds of crores of rupees, between the well-known Paytm wallet and its less prominent banking arm prompted the RBI to take action against entities overseen by Vijay Shekhar Sharma. 

It has also been disclosed that Paytm Payments Bank had numerous non-KYC (Know Your Customer) compliant accounts, with thousands of cases using a single PAN to open multiple accounts. Instances of transactions exceeding regulatory limits in minimum KYC pre-paid instruments, reaching crores of rupees, raised red flags for potential money laundering, as per sources.

What is Paytm doing about the scrutiny by the Reserve Bank of India?

Paytm has committed to adhere to the RBI’s directives promptly. As part of compliance, it will discontinue its association with Paytm Payments Bank and exclusively collaborate with other banks. The company anticipates a potential adverse impact on its annual earnings before interest, tax, depreciation, and amortization (EBITDA), ranging from 3 billion rupees (US$36 million) to 5 billion rupees under the worst-case scenario.

One 97 Communications (OCL), the parent of Paytm, said in an exchange filing that it would partner with other banks, not with Paytm Payments Bank (PPBL). “OCL has been working with other banks for the last two years. We will now accelerate the plans and move to other bank partners,” the company said.

“Regarding the direction on termination of the nodal account of OCL and Paytm Payments Services Limited (PPSL) by February 29, 2024, OCL and PPSL are moving the nodal account to other large commercial banks,” it added.

In a report, Bloomberg claims that India’s banking regulator is considering canceling Paytm Payments Bank’s license as early as next month, potentially impacting the growth plans of Paytm, a troubled local fintech giant. The RBI is prioritizing the protection of depositors and may take action after the February 29 deadline, sources told Bloomberg.

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Another two digital banks have been given the green light to start operating by the central bank of Malaysia, Bank Negara. The two banks are Boost Bank – a joint venture between fintech company Boost and RHB Banking Group – and AEON Bank, which is a subsidiary of AEON Financial Service.

While there were a total of five applicants granted digital banking licenses by Bank Negara in 2022, only Grab’s GXBank actually began operations in the final quarter of 2023. The other two successful applicants that have yet to launch their digital banks are a consortium led by Sea Limited and YTL Digital Capital Sdn Bhd, and a consortium led by KAF Investment Bank Sdn. Bhd.

GXbank has reportedly already had over 100,000 customers since its launch. The digital bank plans to introduce a debit card for its customers sometime in January 2024, too.

The first Islamic digital bank in Malaysia

AEON Bank is notably the first Islamic digital bank in Malaysia. Compared to other digital banks, an Islamic digital bank will have to be Sharia-compliant. This means the bank will offer its customers financial services that are compliant with the principles of Islamic finance.

According to Raja Teh Maimunah, chief executive officer of AEON Bank, the digital Islamic bank aims to advance the promotion of financial inclusion and Islamic banking.

“As part of one of Malaysia’s most recognized retail household brands, we aim to provide accessible, inclusive, and Shariah-compliant digital banking solutions to our AEON Group of customers, as well as to all Malaysians. It is our intent to empower our communities with access to digital financial services which are simplified, safe and secure,” said Maimunah.

The AEON brand is already a highly recognized household name that has served Malaysians nationwide for over four decades. The AEON Group aims to further expand and enhance the provision of its services to its retail and wholesale customers as well as ecosystem partners such as its auto dealers, merchants, suppliers, and tenants, among others.

In addition, the AEON Bank’s advocacy of digital technology will facilitate the introduction of new and innovative products for the AEON Group, enhancing the overall value proposition for its customer base and its ecosystem partners.

AEON Bank aims to unveil its phased rollout in the first half of 2024. The rollout plan is expected to begin with an exclusive beta testing phase with AEON employees. Maimunah explained that this will allow the bank to gather insights and feedback from users to refine and optimize the app.

“By initially offering access to a select group of beta testers, we aim to collaboratively fine-tune the app to ensure it meets the expectations of our wider user base on full release,” she said.

Boost for digital banks in Malaysia

Compared to the other digital banks, Boost Bank is taking a more traditional-finance approach to digital banking. While none of the other digital banks are affiliated with traditional banks, Boost Bank is part of the Boost fintech company, which is a subsidiary of Axiata as well as RHB Bank.

As such, the Boost-RHB Digital Bank Consortium is the first primarily Malaysian-owned digital bank to begin operations with a pioneering embedded digital bank app in the local market. Boost holds 60% equity, and RHB owns the remaining 40%.

“Our aim is to broaden the digital banking options available to those with limited access to conventional banking facilities, and fostering an inclusive digital society for all Malaysians,” said Vivek Sood, group CEO of Axiata Group Berhad.

“This is a culmination of the symbiotic and strategic partnership between a leading fintech and successful financial institution with substantial ecosystems, united by a shared vision to drive greater financial inclusion,” added Sheyantha Abeykoon, group CEO of Boost.

Just like AEON Bank and GXBank, Boost Bank will advance into the alpha testing phase, involving internal employees, family, friends, and a selected group of customers. In the lead-up to the public launch, the digital bank will progressively enhance its product propositions and refine the user experience.

Fozia Amanulla, CEO of Boost Bank, added, “Rooted in the fundamental belief that everyone deserves a bright financial future, we are determined to propel Malaysia into an age of true financial inclusivity, by harnessing the untapped potential of embedded finance with our digital bank.”

Pursuing financial inclusion for all

Bank Negara awarded the digital bank licenses to these consortia based on a lengthy assessment. The assessment criteria covered the character and integrity of applicants, the nature and sufficiency of their financial resources, the soundness and feasibility of their business and technology plans, and their ability to meaningfully address financial inclusion gaps.

As such, the digital banks are expected to announce how they will promote financial inclusion as part of their venture. While GXBank has yet to make any announcements about its plans to reach the currently unbanked, both AEON Bank and Boost Bank have said they hope to provide financing and banking opportunities to individuals who have traditionally not been able to access funding.

AEON Bank aims to further that commitment by extending financial services to both individuals and small businesses who would not have access to funding and other financial services. It will also prioritize financial literacy and education initiatives to empower individuals and small businesses with the knowledge and tools to make informed financial decisions.

Meanwhile, Boost Bank believes that as it begins its operations in phases following the completion of the operational readiness audit, Malaysia is poised to unlock the benefits of greater financial inclusion.

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As the world looks to strengthen AI regulations, using AI in risk and compliance could be one way of ensuring the technology is not abused. AI adoption in risk and compliance may still be in its nascent stages, but the technology is improving, with more companies feeling the best way to ensure they meet regulations on technology is by using technology itself.

The financial services industry, which prioritizes risk and compliance most, is already using technology to do so. With AI, measuring risk and compliance is a lot faster. Fintech companies in particular can easily adopt this, given the amount of technology already involved in the industry.

In fact, in a recent study by Moody, fintech is the leading sector for AI adoption and readiness in risk and compliance, with 18% of fintech respondents currently actively using AI – double the percentage of respondents across all surveyed sectors (9%).

Sectors like insurance, asset management, and wealth management have been slower on AI uptake and adoption. Only 3% of respondents in those areas reported actively using AI currently, though another 11% are piloting it. Banking sits just behind fintech, with 12% of respondents actively employing AI.

“Compliance professionals are convinced that AI will be transformative for their industry, but obstacles remain that could hinder risk management and compliance functions from capitalizing on its potential. The benefits of AI are currently viewed in easy-to-measure quantitative terms.

“Process efficiencies are a good start to AI adoption, but they are only scratching the surface of the technology’s capabilities. Advanced data analytics, accurate predictions, and the scalability of data are all features compliance teams will not want to miss out on,” said Keith Berry, general manager for KYC Solutions at Moody’s Analytics.

Looking specifically at the use of AI for risk and compliance, compliance professionals are most likely to identify improved efficiency in processes (72%), increased speed of data processing and analysis (72%), and cost savings due to automation or improved decision-making (66%). Fewer currently recognize the potential for more advanced, transformative benefits, such as improved accuracy of results and predictions (51%) and the reduction of false positives (49%).

“With many of the professionals we spoke to expecting the widespread adoption of AI in the next one to five years, steps need to be taken for it to meet its transformative potential across risk management and compliance. For example, when based on high-quality data, AI is able to drastically reduce the number of false positives in a KYC screening process at scale and can result in up to 80% of level-one investigation and triage happening instantly and accurately. The overall outlook for AI is strong if compliance teams acquire the right expertise and data to fully capitalize on the opportunity,” explained Berry.

AI adoption in risk and compliance in APAC

Moody Analytics’ study, Navigating the AI landscape: insights from compliance and risk management leaders, included a survey of more than 550 senior compliance and risk management professionals from 67 countries to assess their perspectives on and uses of AI.

Most of the respondents from Asia Pacific (APAC) think they will adopt AI faster in risk and compliance compared to other departments (30% compared to 18% in Europe and 16% in the Americas). That’s actually not that surprising given how countries like Singapore are promoting the use of AI by organizations.

The APAC region is also most keen for vendors to integrate AI tools, at 90% vs 77% in Europe and 68% in the Americas. 90% of APAC respondents also consider it fairly or very important to have new regulations on AI. However, at least 30% of APAC is most concerned about the displacement of jobs, compared to 13% in Europe and 14% in the Americas.

Beyond the early adopters of AI

Another highlight from the study is that outside of the early adopters of AI, most firms have yet to embrace the use of large language models (LLMs). However, there is broad agreement that AI technologies, including GenAI, will deliver advantages for risk and compliance.

Despite the rapid growth of LLMs, caution remains in risk and compliance. Only 28% take a positive stance on these models, while 25% are actively discouraging or prohibiting their use and 46% have yet to adopt an LLM policy. Just 41% associate LLM terminology with risk and compliance.

One of the reasons for this could be the challenges of their internal data quality. Only 14% of those surveyed rated their own data as high quality. Resolving data issues is critical to reducing LLM hallucinations and improving the accuracy of AI outputs. More than half of the respondents stated their data quality was either inconsistent (44%) or fragmented (22%).

Inconsistent data quality means the data is structured but contains inconsistencies. This requires manual cleansing and has limited breadth and depth. Fragmented data quality meant the data was unstructured and required significant cleansing for meaningful use. Only 2% of respondents actually have superior quality data infrastructure with real-time refinement. This allowed them to seamlessly integrate the data into decision-making.

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On April 29, 2022, Bank Negara Malaysia (BNM) unveiled the five successful applicants for the country’s digital bank licenses. Successful candidates have been undergoing operational readiness, subject to BNM’s audit validation before starting operations. The process is expected to last 12 to 24 months since the April 2022 announcement. Last week, GXBank finally launched its beta digital banking app for an exclusive group of 20,000 Malaysians, marking the official debut of Malaysia’s inaugural digital bank. 

In other words, GXBank was the first to receive approval to commence digital banking operations ahead of BNM’s April 2024 deadline. This follows a successful internal testing phase conducted among GXBank’s employees and partners. GXBank is a subsidiary of GXS Bank, a digital bank joint venture in Singapore involving Grab, SingTel, and investors like Malaysia’s Kuok Group. 

Only limited to savings accounts – for now

GXBank’s primary constraint currently lies in its exclusive focus on savings accounts. It lacks options for DuitNow QR spending and does not offer debit Mastercard or Visa cards for online and offline transactions. Simply put, during the beta-testing phase, users can only create a GXBank Savings Account and up to 10 “Pockets.” 

What are ‘Pockets’?

“Pockets” serve as dedicated savings goals to foster a savings mindset for specific goals. Users can allocate funds towards various purposes, such as retirement, upcoming holidays, or a new home. Funds stored in “Pockets” accrue daily interest of up to 3% p.a., allowing users to track their savings progress and receive periodic tips to expedite their savings goals.

However, GXBank CEO Pei Si Lai shared that this is just the beginning of a whole suite of financial services, products, and benefits. “As we continue to test the stability of our app and gather user feedback, we hope to develop a digital banking experience and app uniquely tailored to the financial needs of Malaysians of all generations.”

How ‘seamless’ is the eKYC process?

For starters, one can access the app on both the Apple App Store and Google Play Store and register to join the waiting list. Any interested individual must provide their name and email upon the app download. Should they be among the 20,000 chosen Malaysians, they would be notified to explore the app.

While one might assume GXBank, as a digital bank, aims to serve the underbanked or unbanked communities with limited physical bank access, it’s essential to note that any interested parties must possess an existing account with a local bank to use GXBank. A minimum deposit of RM10 is mandatory and must originate from a bank account registered under the user’s name. This makes it only an option for individuals with a pre-existing bank account.

Once the app is accessible, standard procedures include undergoing an electronic Know Your Customer (eKYC) verification using a local identification card and a one-time password (OTP). Additionally, users are prompted to configure security features, including facial recognition through biometrics. Existing Grab users can access GXBank directly within the former’s app.

1. Download the app from the Google Play Store or Apple App Store
2. Upload a digital copy of the national identity card (MyKad)
3. Complete the eKYC process as stated in the app
4. Add a minimum of RM10 into the savings account and set up Pockets (if so desired)       

GXBank selling points

Users can lock and secure their accounts in response to fraudulent or unauthorized transactions. They can even establish daily spending limits to adhere to their budget, facilitating enhanced financial management. Other notable advantages include a cashback reward of RM20, attained with a minimum deposit of RM100, and a complimentary GrabUnlimited subscription lasting up to six months.

All deposits are also assured with the protection of up to RM250,000 per depositor by Perbadanan Insurans Deposit Malaysia (PDIM). Additionally, GXBank said they will soon waive the RM1 processing fee for cash withdrawals at MEPS automated teller machines (ATMs) nationwide. The digital bank will also allow unlimited cashback every time they spend with GXBank’s debit card. 

Once it is officially launched, Lai said that the GXBank app will be updated to support other languages, namely Bahasa Malaysia and Mandarin. “As a bank built predominantly by Malaysians, we are uniquely positioned to understand and develop financial solutions that address the needs and challenges of the everyday Malaysian. We are one step closer to our nation’s vision of a financially resilient country where Malaysians can have equitable access to financial products that cater to their individual needs, without the intimation and hassle of elaborate paperwork, processes, and jargon,” Lai concluded. 

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