KUALA LUMPUR: AEON Credit Service (M) Bhd and its consortium partners have secured an Islamic digital bank licence from the Ministry of Finance (MoF), with operations expected to commence within 24 months from its approval date.

       In a Bursa Malaysia filing, AEON Credit said the tripartite consortium, comprising AEON Credit, AEON Financial Service Co., Ltd (AFS) and MoneyLion Inc. (MLI), will have a 45:45:10 per cent stake, respectively, in the proposed Islamic digital ban.

       MLI, incorporated in Delaware, United States (US) has been listed on the New York Stock Exchange since September 2021. Its principal activity is mobile banking on a financial membership platform, and it provides banking, borrowing and investment solutions for its customers in the US.

       As stipulated in the Licensing Framework for Digital Banks issued by Bank Negara Malaysia (BNM), the Islamic digital bank shall operate within an asset limit of RM3 billion and maintain minimum capital funds of RM100 million unimpaired by losses during its foundational phase.

       Commencement of operations is subject to an operational readiness review by BNM, according to the filing.

       AEON Credit said the proposed joint-venture is not anticipated to have any material financial and operational impact on the consolidated results of AEON Credit for the financial year ending Feb 28, 2023.

       "Further details will be announced upon finalisation and execution of the relevant agreement. The company will also be seeking the required approval from shareholders on the related party transaction for the proposed joint-venture,” it added.

       BNM earlier today announced five consortia won Malaysia’s digital bank licences, namely Boost Holdings Bhd-RHB Bank Bhd; GXS Bank Pte Ltd-Kuok Brothers Sdn Bhd; Sea Ltd-YTL Digital Capital Sdn Bhd; AEON Financial Service-AEON Credit Service-Money Lion; and KAF Investment Bank Sdn Bhd.

       It said Boost-RHB Bank, GXS Bank-Kuok Brothers and Sea Ltd-YTL Digital Capital were licensed under the Financial Services Act 2013 (FSA).

       Meanwhile, AEON Financial Service-AEON Credit-Money Lion consortium and KAF Investment Bank were licensed under the Islamic Financial Services Act 2013 (IFSA). - Bernama