MyMy, Sukaniaga ink deal to form digital banking consortium
By Digital News Asia March 4, 2021
- Digital banking consortium focused on the six million co-operative members
- To target 100 million co-operative members in Asean in next phase
TWO fintech companies, MyMy and Sukaniaga Sdn Bhd, have inked a partnership to form a digital banking consortium and bid for one of five digital banking licences, which is expected to be issued next year by Bank Negara Malaysia.
“Both MyMy and Sukaniaga have ambitions to revolutionise banking for the betterment of Malaysia’s six million co-operative members as well as some 100 million strong across Asean,” said Mohammad Shaharul, Sukaniaga’s managing director.
Fresh off recently raising Malaysia’s largest seed fundraising round from Koperasi Tentera (KT), MyMy claims to have strong links within the co-operative industry and has ambition to become the world's first Shariah-compliant digital bank, the company said in a statement.
“Since receiving our investment from KT, we have been working on utilising digital financial services for the betterment of the co-operative community,” said Tunku Ahmad Burhanuddin, chairman of MyMy.
“Our technology and extensive digital banking experience combined with Sukaniaga’s leading products and customer base can future proof the industry.”
According to the two companies, the consortium is also seeking an additional strategic partner to further strengthen their bid.
While the collaboration covers most requirements, the consortium is still considering a final strategic partner before making their application to Bank Negara. The ideal partner will be a tier-one Malaysian company with strong financials and a large customer base for distribution, the companies said.
Sukaniaga provides end-to-end solutions aimed at digitising loan application processes and has secured a 15-year concession from 2018 to 2032. In 2020, the scope was expanded to include a marketplace, wallet and B2B digital platform with Angkasa as its business partner extending its products to member co-operatives, subscribing to its accredited and recognised Salary Deduction System (SPGA).
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