Malaysia's Digital Banks Reach 2.4M Customers and $1.04B Deposits by 2025: Boosting Financial Inclusion

Malaysia's five digital banks collectively served 2.4 million customers by the end of 2025, showcasing rapid adoption in the nation's fintech landscape.

Total deposits reached MYR 4.2 billion ($1.04 billion), according to the Bank Negara Malaysia (BNM) annual report released on March 31, 2026.

Financial Inclusion Milestone

Remarkably, 65% of these customers hail from unserved and underserved segments, such as low-income households, gig workers, and youth.

These banks have approved MYR 1 billion ($250 million) in financing, with 34% targeted at underserved groups to address unmet needs.

Regulatory Framework Driving Progress

BNM launched the Digital Bank Inclusion Monitoring and Evaluation (DIME) Framework to embed financial inclusion into bank strategies and operations.

Pilot assessments in 2025 revealed strong alignment, with clear inclusion strategies and products tailored for underserved populations.

Innovative approaches include small-value financing, data analytics for thin-file customers, and flexible repayments aiding SMEs and individuals.

Future Innovations and Expansion

Digital banks plan deeper integration with telecoms, utilities, and public services to enhance accessibility across Malaysia.

BNM's Digital Asset Innovation Hub (DAIH) supports testing of tokenized money and distributed ledger technologies.

2026 priorities include CBDC exploration, stablecoins, fraud prevention, and expanding digital payments for economic transformation.

KAF Digital Bank recently gained approval for public onboarding, accelerating sector growth.

BNM noted this "modest" progress "reflects meaningful advancement in addressing unmet financial needs."