Boost Bank Eyes Converting E-wallet Users Into Banking Customers

KUALA LUMPUR, June 6 (Bernama) -- Homegrown digital bank Boost Bank by Axiata and RHB (Boost Bank) is eyeing converting its current e-wallet ecosystem into banking clients and is set to achieve profitability in the next three to five years.

Chief executive officer Fozia Amanulla said the Boost e-wallet ecosystem has a sizeable number of individual and micro, small and medium enterprises (MSMEs) clients, numbering over 10 million users.

“So, our first target customers are those within our ecosystem,” she told a media conference after its digital bank app’s launch today.

Fozia said in addition its base in Peninsular, Boost is also strong in East Malaysia, and will continue to pioneer reaching out to the underbanked and unbanked segment through strategic partnerships.

It said these partners include CelcomDigi, Mydin, Bataras Sdn Bhd, CKS Retail Sdn Bhd, Farley (KCH) Sdn Bhd, Servay Hypermarket (Sabah) Sdn Bhd, and Boulevard Hypermarket and Departmental Store Sdn Bhd.

“So, in addition to just serving those segments, I think the idea is also for us to provide financial literacy and educate these customers,” she added.

Prime Minister Datuk Seri Anwar Ibrahim earlier called on Boost Bank to make serious efforts to ensure that people can assimilate digital literacy and take advantage of the latest technological developments, including artificial intelligence.

“I hope the components in Boost Bank, Axiata and RHB Bank as the pillars, would make efforts to spread knowledge about the (banking) facilities so that they can be used by MSMEs as their priority,” he said.

The Boost-RHB Digital Bank Consortium, in which Boost, the fintech arm of Axiata, holds 60 per cent equity and RHB owns the remaining 40 per cent, was among the five successful licence applicants announced by Bank Negara Malaysia in April 2022, which then commenced operations following the official regulatory approval earlier this year on Jan 15, 2024.

Anwar said Boost’s efforts will be assisted by the Digital Ministry under its Minister Gobind Singh Deo in giving suitable ideas and recommendations to the digital bank. 

With the launch of its banking app, Boost became the first digital bank that enables embedded account opening via the Boost eWallet app.

It is also launching a new exclusive rank called “Platinum President” for users who open a Boost Bank account and fulfil certain criteria.

“All users need to do is deposit a minimum of RM2,000 into the Boost Bank’s Savings Jar and/or Savings Account, enabling them to receive a promotional daily interest rate of up to 3.6 per cent per annum from now until Aug 31,” it said.

Boost Bank also plans to launch new services, such as a debit card, for consumers in July.

-- BERNAMA