Malaysia now has five licensed digital banks — all approved by Bank Negara Malaysia (BNM) in April 2022. Before you move your savings, there is one distinction worth getting clear: a digital bank is fundamentally different from an e-money platform like BigPay or Touch 'n Go eWallet. Mixing them up can cost you real money, and real PIDM protection.
This guide covers what each digital bank actually offers, how BigPay fits into the picture, and how to decide whether switching makes sense for your situation.
What Makes a Digital Bank Different
A digital bank holds a full banking licence issued by BNM under either the Financial Services Act (FSA) or Islamic Financial Services Act (IFSA). That means:
- Your deposits are PIDM-insured up to RM250,000 per bank
- The bank can legally hold your money as a deposit (not just float)
- It operates entirely through an app — no physical branches, no over-the-counter service
E-money platforms — BigPay, TNG eWallet, Setel — are licensed differently. They are regulated as e-money operators, not banks. Your balance sits as stored value, not a deposit. PIDM does not cover e-money platforms. If the operator fails, your recourse is limited.
This distinction matters especially if you are parking a meaningful sum. For everyday spending float, e-money platforms are fine. For savings of RM10,000 or more, it is worth understanding exactly where your money sits.
Malaysia's 5 BNM-Licensed Digital Banks at a Glance
| Bank | Licence Type | Launched | Primary Target | |------|-------------|----------|---------------| | GX Bank | FSA (conventional) | October 2023 | Retail — Grab ecosystem users | | Boost Bank | IFSA (Islamic) | 2023 | Retail — Islamic banking, Boost e-wallet users | | AEON Bank | IFSA (Islamic) | 2023 | Retail — AEON loyalty shoppers | | KAF Digital Bank | IFSA (Islamic) | 2023–2024 | SME and business banking | | Ryt Bank | FSA (conventional) | August 2025 | Retail — AI-native, tech-savvy Malaysians |
All five operate under the same BNM digital banking framework. All deposits at these banks are covered by PIDM up to RM250,000 per depositor per bank.
GX Bank — The Highest-Profile Launch
GX Bank is led by the Grab consortium and launched in October 2023. It is the most consumer-facing of the five and has attracted the most attention for one straightforward reason: 3% per annum on your first RM100,000 in savings.
That rate is not fixed forever, but as of its launch position it was meaningfully higher than most conventional bank savings accounts, which typically sit between 0.25% and 1% p.a.
Key features:
- 3% p.a. interest on savings (up to RM100,000)
- No minimum balance required
- No monthly fees
- FSA-licensed (conventional banking)
- PIDM-insured up to RM250,000
- App available on iOS and Android
- Built on Grab's infrastructure — GrabPay, Grab rewards, and GX Bank are tightly integrated
Who should use GX Bank: Anyone already in the Grab ecosystem will find the integration natural. Beyond Grab users, GX Bank makes sense for anyone who wants a higher savings rate without the friction of a fixed deposit — your money stays liquid, no lock-in period, and you still earn meaningfully more than a standard savings account.
The trade-off is that GX Bank is still a relatively new institution. Those comfortable with established bank relationships may prefer to treat it as a secondary savings account rather than a primary one — which is a sensible approach regardless.
Boost Bank — Islamic Digital Banking
Boost Bank is a joint venture between Axiata Digital and RHB Bank, and it operates under the IFSA as a fully Islamic digital bank. It launched in 2023 and integrates with the existing Boost e-wallet ecosystem.
Key features:
- Shariah-compliant banking (profit rates, not interest)
- Backed by Axiata Digital and RHB — two established Malaysian financial institutions
- Integration with the Boost e-wallet, which has an existing user base
- Competitive savings profit rates (check current rates at the Boost Bank app — rates are variable)
- PIDM-insured up to RM250,000
Who should use Boost Bank: Muslim Malaysians who want their savings in a fully Shariah-compliant structure without the branch overhead of a traditional Islamic bank. Existing Boost e-wallet users benefit from a familiar interface and integrated experience. RHB's backing provides an additional layer of institutional credibility for those wary of newer entrants.
AEON Bank — For AEON Shoppers
AEON Bank also holds an IFSA (Islamic) licence and launched in 2023. Its clearest differentiator is its connection to AEON's retail loyalty programme — AEON has a loyal customer base across its supermarkets and department stores in Malaysia.
What we know:
- Islamic digital bank under IFSA
- AEON retail loyalty integration — likely benefits for AEON shoppers
- PIDM-insured deposits
- Savings profit rates vary — check the current AEON Bank app
Who should use AEON Bank: Regular AEON shoppers who want to keep their banking and retail loyalty in one ecosystem. Outside of that integration, AEON Bank has fewer distinguishing features compared to GX Bank or Boost Bank for the general public. That may change as the product matures.
KAF Digital Bank — Built for Businesses
KAF Digital Bank serves a different market from the other four. Its primary focus is SMEs and business banking — not retail savings accounts. If you are looking for a personal savings account, KAF is not the right comparison.
For small business owners, KAF is worth monitoring as it develops its product offering. Its positioning is the most distinct of the five licences.
Ryt Bank — Malaysia's First AI-Native Digital Bank
Ryt Bank (operated by YTL Digital Bank Berhad) is the newest of the five licensed digital banks, having launched in August 2025. The consortium behind it — YTL Group and Sea Limited (the Singaporean parent of Shopee and Garena) — has positioned Ryt Bank explicitly around AI-powered banking features.
Key features:
- FSA-licensed (conventional banking) — eligible for PIDM coverage up to RM250,000
- Launched August 2025 — the last of the five to go live
- Backed by YTL Group (major Malaysian conglomerate) and Sea Limited (Southeast Asia tech giant)
- AI-personalised features: contextual financial guidance, multilingual support, biometric authentication
- Positioned at tech-savvy and underbanked Malaysians
- SME and business banking features flagged for 2026 expansion
Who should use Ryt Bank: Ryt Bank is still early-stage relative to GX Bank or Boost Bank, both of which have had two-plus years to mature their product. For users who value AI-assisted features and are comfortable with newer platforms, Ryt Bank is worth exploring — especially given Sea Limited's track record of building competitive fintech products across Southeast Asia. As with any newly-launched bank, it is worth starting with a small balance and monitoring how the product evolves before making it a primary account.
BigPay vs Digital Banks — Not the Same Thing
BigPay is one of the most downloaded financial apps in Malaysia. It is genuinely useful. But it is not a bank, and understanding the difference matters.
BigPay is licensed as an e-money operator under BNM — a different licence category from a digital bank. Here is what that means in practice:
| Feature | GX Bank (digital bank) | BigPay (e-money) | |---------|------------------------|-----------------| | PIDM deposit protection | Yes — up to RM250,000 | No | | Can hold deposits | Yes | No — stored value only | | International transfers | Limited | Strong — real exchange rates, low fees | | Savings/interest | Yes (3% p.a. at GX Bank) | No deposit returns | | Prepaid card | No | Yes | | Bill payment | Yes | Limited |
BigPay's strengths are real: international transfers at near mid-market exchange rates with low fees, a Mastercard prepaid card accepted globally, and a clean app experience. For frequent international transfers or overseas card spending, BigPay competes well.
BigPay's limitation is that it is not a place to park savings. Any balance sitting in BigPay earns nothing and is not covered by PIDM. Treat it as a transaction tool, not a savings vehicle.
The same logic applies to Touch 'n Go eWallet's GoPlus+ product. GoPlus+ offers returns of around 2% — but it is a money market fund managed by TNG Digital, not a bank deposit. It is not PIDM-protected. For everyday float, it is fine. For significant savings, you want a licensed bank.
Should You Switch? Four Scenarios
1. You already use Grab heavily
GX Bank is worth opening. The 3% p.a. savings rate is straightforward to access, there is no minimum balance, and the Grab integration is genuine. You do not need to close your existing bank — run GX Bank as a high-yield savings layer while keeping your salary and bill payments at your main bank.
2. You want Islamic banking
Boost Bank or AEON Bank are the options. Both operate under IFSA. Boost Bank's RHB backing and existing Boost ecosystem give it a slight edge in maturity. AEON Bank makes more sense if you are already an AEON loyalty member. Check current profit rates at both before committing — rates are not fixed and can change.
3. You make frequent international transfers
Keep BigPay for transfers and overseas card spending. The exchange rates are competitive and the fees are low. But do not use it as a savings account — keep substantive balances in a PIDM-covered account.
4. You have a mortgage, investment account, or business banking relationship
Digital banks are additive, not replacements, for complex financial relationships. Your home loan, unit trust investments, and business current account will stay at a conventional bank for the foreseeable future. Use a digital bank like GX Bank for the savings rate benefit while keeping your primary banking relationship intact.
PIDM Coverage — The Number to Remember
All five BNM-licensed digital banks are PIDM members. Your deposits are insured up to RM250,000 per depositor per bank. If you have more than RM250,000 to protect, spreading across multiple banks (including digital banks) is a straightforward way to extend that coverage.
e-money platforms — BigPay, TNG eWallet, and similar operators — are not covered by PIDM. This is not a reason to avoid them for their intended purpose, but it is a reason not to treat them as savings accounts.
Compare Rates Before You Decide
Digital bank savings rates can change. So can fixed deposit rates at conventional banks. Before parking a significant sum anywhere, check the current rates.
- Compare digital bank and conventional FD rates side by side
- Best fixed deposit rates in Malaysia — full guide
The right account depends on your current rates, your liquidity needs, and whether you want conventional or Islamic banking. The tools above are updated regularly so you are comparing current numbers, not headlines from six months ago.