KUALA LUMPUR: Green Packet Bhd, ZICO Holdings Inc (ZHI) and M24 Tawreeq Sdn Bhd have teamed up via a consortium to jointly submit an application for an Islamic digital banking licence to provide syariah-compliant digital micro services for the underserved segment.
In a joint statement, the consortium said its application is focused on forming an Islamic digital bank, which would include several other collaborators that would further complement its products and value-added services to strengthen the client servicing capabilities and expand its customer base.
“The consortium merges Green Packet’s expertise in technological solutions, which includes a cashless fintech ecosystem designed for underserved communities, ZHI’s proficiency in business and financial advisory as well as syariah regulatory compliance, together with M24 Tawreeq’s understanding and experience in syariah-compliant financial offerings tailored to the needs of the underserved micro, small and medium enterprises segment in Malaysia, ” it said.
The consortium believed financial micro services derived from Islamic finance principles of equality and fairness would sustainably pave the way forward to create responsible disruption that is favourable to the underserved segment.
Green Packet group chief strategy officer Ku Kok Peng said the company has the experience and knowledge about the financial needs of the underserved segment.
“Harnessing technologies such as artificial intelligence, analytics and electronic know-your-customer (e-KYC), among others, we can build and continuously develop relationships with each of our customers, understanding their pain points and needs, and providing them access and solutions they need, when they need them.
“We seek to revive how banking should be – personal, empathetic and supportive. In this manner, our initiative is deliberately positioned as a responsible disruptor in advancing Islamic digital banking for all, ” he added.
Meanwhile, ZHI managing director Chew Seng Kok (pic) said the group’s experience in syariah compliance and advisory would ensure there is no compromise on integrity as the bank introduces modern Islamic financial products and services.
M24 Tawreeq group managing director Ahmad Tarmizee Ab Hamid noted that the underserved segment needs access to cost-efficient and practical tools for better cashflow management.
“Our offerings work synergistically with the suite of micro services the consortium intends to offer to better-serve our targeted segments, ” he added.
Overall, the consortium said it brings a track record of serving their target markets, utilising their combined regional market presence to embark on the Islamic digital bank agenda in Malaysia.
“The consortium has also enlisted several strategic partners in the Islamic digital bank business plan. These partners will bring significant value-add in their ability to expand the consortium’s distribution channels and strengthen the range of products to be offered by the consortium, ” it added.
Meanwhile, a Reuters report – citing sources – said that Sunway Bhd has teamed up with Tencent-backed Chinese fintech firm Linklogis Inc and Bangkok Bank PCL to apply for a Malaysian digital bank licence. Sunway is expected to hold a majority stake in the venture.
Sunway owns and manages an online remittance firm and has a subsidiary that provides loans to business partners. It is also the majority shareholder of Credit Bureau Malaysia.
Hong Kong-based Linklogis, which specialises in supply chain finance, declined to comment and said it would share details with the market “at the appropriate time.” Chinese tech behemoth Tencent is its biggest shareholder with a nearly 15% stake.
Linklogis was part of a consortium that was granted a Singapore digital wholesale bank licence. The bank is due to be launched in 2022.