KAF Investment Bank Bhd (KAF IB) is exploring a potential sale of KAF Digital Bank Bhd, according to The Edge Malaysia. Provided that this is accurate, the move comes barely six months after the digital bank commenced operations.
According to the publication, at least three sources say representatives from KAF IB have approached several parties, including banks, to gauge interest in acquiring the digital bank. One source says KAF IB is seeking to sell 100% of the business for RM80 million, while another adds that discussions have involved multiple parties, including potential buyers from elsewhere in the region. KAF IB CEO Rohaizad Ismail has yet to comment on this matter, The Edge adds.
Bank Negara Malaysia licensed KAF Digital Bank as one of five digital banks in April 2022, with a mandate to serve unserved and underserved segments. It was also one of only two Islamic digital banks approved, alongside AEON Bank.
Following a controlled testing period under its βPerintis Phaseβ, KAF received approval from BNM on 20 December 2024 to operate as a digital bank in Malaysia. After completing this phase, the bank secured final approval to commence full operations starting 8 August 2025.
KAF Digital Bank operates under a consortium comprising KAF IB and four fintech and tech-based partners: Carsome, MoneyMatch, Jirnexu and StoreHub. KAF IB holds an 84% stake in the digital bank, while each of the four partners owns 4%.Β
It remains unclear why KAF IB is considering a sale so early in the digital bankβs lifecycle. Industry sources suggest the move may reflect the high cost pressures associated with running a digital bank, particularly in areas such as compliance and risk management.
Another key uncertainty is whether Bank Negara Malaysia (BNM) will approve a full sale of the digital bank. The central bank conducted a highly competitive selection process, choosing just five consortiums from 29 applicants for digital banking licences, with the successful bidders announced in 2022. Any full transfer of ownership would likely require regulatory approval, potentially adding complexity to any transaction.
(Source: The Edge Malaysia)