Malaysian digital lender Boost Bank has officially launched its services, while Ant Group-backed ANEXT Bank has reported a significant increase in its customer base and cross-border transactions. In another development, Indonesia-listed Amar Bank has distanced itself from troubled fintech firm Investree.
Boost Bank launches digital bank app
Boost Bank, a digital lender owned by Malaysia’s Axiata Group and RHB Banking Group, launched its digital bank app on Thursday to officially commence operations in the country.
The digital bank, owned 60% by Axiata Group’s fintech Boost and 40% by RHB, received approval from Bank Negara Malaysia (BNM) and the finance ministry to start its digital bank operations in January.
The newly launched Boost Bank app will enable users without an existing bank account to be digitally onboarded.
“The launch of Boost Bank is a key milestone as we improve accessibility of financial services for the people of Malaysia. Through Boost Bank, our goal is to enrich the digital banking landscape for those with limited to no access to traditional banking, thus advancing towards a more inclusive digital society,” Vivek Sood, group CEO and managing director of Axiata Group Berhad, said in a statement.
Boost Bank is the third digital lender to launch its services in Malaysia after Grab-backed GXBank and AEON Bank.
ANEXT Bank reports increase in customers, transactions
Singapore-based digital wholesale lender ANEXT Bank reported a significant increase in both the number of its customers and cross-border transactions last year.
In a statement, the Ant Group-backed digital lender said its customer base grew more than twofold over the last 12 months, while the cross-border transactions it facilitated grew sixfold.
The lender said nearly 31% of its customers are foreign business owners from countries such as mainland China, Indonesia, Japan, Malaysia and South Korea as of the end of May. Meanwhile, 69% of its customers are micro businesses.
ANEXT recently received S$200 million (about $148 million) in capital infusion from its parent company. The capital injection came a year after the digital bank secured nearly $188 million in capital infusion from Ant Group.
Amar Bank distances itself from Investree
Indonesian lender Amar Bank has severed its commercial ties with peer-to-peer lending firm Investree, according to a filing with the Indonesia Stock Exchange (IDX).
Investree’s Singapore-based entity, however, still owned a 12.2% stake in Amar Bank at the end of April.
“As a minority shareholder in Amar Bank … our collaboration with Investree was truly a business-to-business collaboration. They just announced their loan to us and at the backend, Amar Bank conducted a recheck. If the loan is deemed bad, we will reject it,” David Wirawan, senior vice president of finance at Bank Amar, said during an annual public conference.
“We understand the risk and reward, and we don’t depend on Investree. [Investree] remains our stakeholder, especially Investree Singapore, but in terms of cooperation, we are free,” Wirawan said.
Investree Singapore has been paring its stake in Amar Bank since last year. The firm sold 143 million shares in the lender in October 2023, resulting in its ownership falling to 13.06%.
According to a report by the Indonesian Central Securities Depository (KSEI), Investree’s holding in Bank Amar dropped further to 12.94% in January.
Fintech firm lender Investree has been troubled by allegations of fraud, a surge in bad loans, an ongoing probe by the regulators, and lawsuits following the departure of its high-profile chief executive officer.