CNASIA, INTCYS INK MOU FOR DIGITAL BANK LICENCE BID

KUALA LUMPUR, Jan 8 -- Investment holding company, CNAsia Corporation Bhd, has inked a Memorandum of Understanding (MoU) with Intcys Sdn Bhd, a social enterprise, in its bid to apply for a digital banking licence from Bank Negara Malaysia (BNM).

CNAsia executive director Chang Chee Ching said the company would invest RM400 million to establish the digital banking platform, the MyWEW (Women Empowering Women) Digital Bank, to provide micro-credit facilities primarily suited for women.

“CNAsia sees digital banking as a future trend. When BNM opened up its (digital banking) licence application, we believe it is a wise business move for CNAsia to have a go and develop the MyWew Digital Bank,” he said at the MoU signing in Balakong, Selangor, Thursday.

Recently, BNM had issued its Policy Document on the Licensing Framework for Digital Banks, and the central bank intends to issue up to five licences for conventional or Islamic digital banking business.

The application period for the licence ends June 30, 2021.

Intcys director Wan Nurliyana Abdul Rahman said the MyWEW Digital Bank seeks to offer entrepreneurial financing and bank account services for women, among others.

"Digital banking has been developed in a few other countries like Sweden, India and Bangladesh.

“They have (conventional) banks for women but we want to be the first country to have a digital bank specifically for women," she said. 

MyWEW advisor, who is also the Deputy Dewan Rakyat Speaker, Datuk Seri Azalina Othman Said noted that the establishment of a digital bank would enable women entrepreneurs to gain easier access to credit facilities.

She said the MyWEW Digital Bank aims to explore the possibility of providing instant micro-loans to women with a weekly repayment method.

"Micro-credit is important for women. I discourage women from seeking millions of ringgit worth of loans for their businesses.

"When you do business, you need the money fast. But the amount must be low, it cannot be high," she said. 

Azalina said women were one of the most vulnerable groups which have been affected by job losses following the COVID-19 pandemic, leaving many facing financial difficulties.

Hence, she urged the government to support the women-only digital banking initiative to encourage entrepreneurship among the women folk, especially those from the B40 income group. 

-- BERNAMA