ManagePay, Singapore’s iFast submit bids for digital banking licence

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KUALA LUMPUR: Managepay Systems Bhd and Singapore-headquartered iFAST Corporation Ltd are among the latest companies which have submitted an application for a digital banking licence to Bank Negara Malaysia.

They said the application were submitted on Wednesday, the deadline for applications for the licence.

In a statement to Bursa Malaysia on Thursday, MPay said its unit ManagePay Services Sdn Bhd’s application was supported by three local strategic partners which are bumiputera-controlled entities.

“These entities have expressed their interest to invest up to 45% in aggregate in the equity of ManagePay Services in the event the application is successful and subject to regulatory’s prior approval, ” it said.

In a separate statement, the iFAST-led digital bank consortium is a synergistic partnership that builds on the strengths of both local companies in Malaysia as well as international players.

iFAST Corp will own a 40% stake in the digital bank if the application is successful. The beneficial equity ownership of the consortium will be about 57% Malaysian.

“iFAST is very pleased to have been able to put together a strong consortium, comprising both Malaysian and international partners.

“Our consortium partners are excited with the possibility of getting a digital bank licence in Malaysia, which will allow us to tap into the exciting digital banking opportunities in Malaysia as well as to develop a truly-global digital banking and Fintech business model, ” said iFast chairman and CEO Lim Chung Chun.

“In the financial sector including in banking, the emergence of truly global Fintech business models has lagged behind other industries such as e-commerce, video-streaming, music and media.

“This is due to financial sector regulations of various countries that tend to slow down the efforts of most financial institutions in creating global Fintech businesses. Hence, now is the right opportunity for a Malaysia digital bank to make a substantial contribution to the global digital banking and Fintech scene, ” Lim added.

He added iFAST Bank can create positive change for the unserved and underserved market segments such as the Bottom 40% (B40) population in Malaysia.

“With the synergistic capabilities within our consortium, the solutions offered for the B40 are ones that will provide immediate benefits and results – such as free life insurance, interest-free loans for daily necessities, and micro investments and insurance. iFAST Bank is ready to serve the B40 segment for these purposes, ” said Mr Lim.

The Malaysian consortium partners are Koperasi Angkatan Tentera Malaysia Bhd, THZ Alliance Sdn Bhd and Lee Thiam Wah, founder and major shareholder of 99 Speed Mart Sdn Bhd.

Internationally, the iFAST Bank consortium comprises Yillion Fintech Pte Ltd which provides the core digital banking technology and capabilities for Yillion Bank.

Yillion Bank is one of the four digital banks in China founded by Zonfar Financial Holding and Hong Kong-listed Meituan Dianping.



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