Malaysia’s AirAsia applies for digital banking license
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Malaysian budget airline AirAsia Group Bhd said on Thursday its fintech unit has bid for a digital banking license in the country as part of a consortium.
BigPay, the unit, has partnered with Malaysian Industrial Development Finance Berhad – a unit of the country’s largest asset manager Permodalan Nasional Bhd – and private equity firm Ikhlas Capital.
Singapore-based Ikhlas was founded by Nazir Razak, the former chairman of CIMB Group Holdings.
The consortium also includes a foreign conglomerate with fintech expertise, AirAsia said in a statement.
Citing sources, Reuters reported earlier on Thursday that AirAsia and its partners were among the bidders for up to five digital banking licences that the Malaysian central bank has said it will issue by early 2022.
Other bidders include a joint venture between ride-hailing-to-fintech group Grab and Singtel, telecoms operator Axiata and a consortium backed by Chinese tech firm Tencent.
Questions & Answers
Q.Which entities are part of the consortium applying for the digital banking license with AirAsia's fintech unit?
Which entities are part of the consortium applying for the digital banking license with AirAsia's fintech unit?
AirAsia's fintech unit, BigPay, has partnered with Malaysian Industrial Development Finance Berhad, private equity firm Ikhlas Capital, and an unnamed foreign conglomerate with fintech expertise. This consortium is jointly bidding for the license.
Q.When does the Malaysian central bank plan to issue the digital banking licenses?
When does the Malaysian central bank plan to issue the digital banking licenses?
The Malaysian central bank has indicated it will issue up to five digital banking licenses by early 2022. AirAsia and its partners are among the bidders for these licenses.
Q.Who founded Ikhlas Capital, one of the partners in AirAsia's consortium?
Who founded Ikhlas Capital, one of the partners in AirAsia's consortium?
Singapore-based Ikhlas Capital was founded by Nazir Razak. He is the former chairman of CIMB Group Holdings, a prominent regional banking group.
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