KUALA LUMPUR: After an unsuccessful bid for a digital banking licence, Pertama Digital Bhd (PDB) is now in discussion with incumbent conventional banks to provide digital banking products via its neobank services channel.
A neobank is a combination of a technology company and a licenced bank providing digital banking services. PDB is an Internet software company providing digital solutions to both the government agencies, banks and government-linked corporations.
“We are working with a number of banks, at least more than one, existing conventional licenced banks to roll out this service. We will announce the details as soon as they are finalised,” PDB chairman Tun Datuk Seri Zaki Tun Azmi said in a press conference at PDB’s annual general meeting here today.
He said the company had obtained a lot of data from which they were able to form “a very solid business plan” which they are now using to work with some of their partners to operate neobanking products, he said.
PDB had earlier submitted an application for a digital bank licence via a consortium but was unsuccessful. Bank Negara Malaysia gave five digital banking awards earlier this year.
PDB strategy director Saifullah Akhtar added that the company will be developing the software, the branding, market positioning and the banking products, all of which will take a minimum of 12 months.
The investment for a neobank is estimated to be about RM100 million over a three-year period versus a minimum RM500 million needed to launch a viable digital bank via the digital banking licence from BNM, Saifullah said. – Bernama