In Malaysia's rapidly transforming financial sector, digital banks are gaining prominence for their potential to address gaps left by traditional banking models. Boost Bank, a collaboration between fintech firm Boost, a subsidiary of Axiata Group, and traditional banking giant RHB Banking Group (RHB), is a pioneering force in this shift. CEO Fozia Amanulla, who previously served in senior roles at Alliance Bank and EONCap Islamic Bank (now known as Hong Leong Islamic Bank), brings years of experience in both traditional and digital banking, providing leadership in navigating this unique partnership.

Amanulla shares insights into how Boost Bank is leveraging its unique structure, innovative solutions, and customer-centric approach to redefine financial inclusion.

Fintech meets traditional banking

Boost Bank stands out because of its hybrid foundation, an innovative partnership between Axiata’s Boost and RHB Bank. Axiata, one of Malaysia's largest telecommunications companies, brings its vast customer base and technological expertise, while RHB contributes the stability and regulatory knowledge of a traditional banking giant. This strategic alliance forms the backbone of Boost Bank's approach, combining fintech agility with banking reliability.

Boost Bank operates as a 'brownfield' project, integrating existing infrastructure from Boost's fintech ecosystem that includes an e-wallet, and RHB’s banking framework. This is in contrast to 'greenfield' digital banks that create their entire infrastructure from scratch. Boost itself has been active in the digital space since 2017, amassing 11 million consumer users and over 650,000 merchant touchpoints, giving Boost Bank a substantial customer base from day one.

Since its launch, Boost Bank has welcomed a significant number of customers, drawing many from its existing e-wallet user base. Boost's extensive reach in Malaysia, supported by its well-established presence, provided a strong foundation for this transition. These customers enjoy the convenience of accessing banking services directly through their e-wallet, fostering a seamless financial ecosystem.

Boost Bank's launch and key products

Boost Bank was officially launched in mid-2024 as part of the broader trend towards digital banking in Southeast Asia. The launch marked a significant step in Malaysia’s financial ecosystem, as the country saw a wave of new digital banking licenses granted to companies leveraging technology to cater to underserved segments.

Unlike traditional banks, Boost Bank offers a full suite of banking products, ranging from savings accounts to loans, specifically designed for both retail consumers and small and medium-sized enterprises (SMEs). Initially, Boost Bank launched with a basic savings account offering, accessible directly via the Boost e-wallet app. This integration allows users to easily transition from using Boost as a payment platform to managing their finances.

In addition to basic savings accounts, the digital bank will soon be introducing a range of products including term loans and revolving credit facilities tailored for MSMEs. These products are designed to meet the financial needs of small businesses that often struggle with traditional financing methods due to stringent documentation requirements and rigid repayment terms.

Innovations in digital banking

Boost Bank has positioned itself as one of the leaders in innovation, with embedded finance being a key component of its strategy. Through embedded finance, the digital bank integrates its financial products and services directly into the Boost e-wallet app, enabling users to perform banking activities without needing to open a separate banking app. Users can seamlessly open accounts, make payments, transfer funds, and access loans, all within the same platform.

Another significant innovation is Boost Bank’s data-driven lending model. By leveraging Boost's vast ecosystem of consumer data, including transaction history and spending patterns, the bank is able to assess the creditworthiness of MSMEs and individuals more effectively. This eliminates the need for traditional banking documentation, making it easier for underserved businesses to access credit.

Flexibility is another core innovation. Boost Bank’s upcoming loan products will allow repayment schedules to be tailored to the borrower’s cash flow. Loans can be repaid on a daily, weekly, or monthly basis, which is particularly beneficial for MSMEs with fluctuating revenues. Amanulla notes, “We’re helping them manage cash flow better by adapting to how they operate.”

Serving the underserved

Boost Bank’s core mission is financial inclusion. Despite Malaysia’s high banking penetration rate of 95%, many individuals, especially those in lower-income groups or rural areas, remain excluded from meaningful financial services. Traditional banking systems often fail to meet the specific needs of these underserved populations, including the lack of small loans, flexible repayment terms, and access to digital services.

Boost Bank aims to fill this gap by offering easy access to financial services, particularly for those who may not meet the stringent requirements of conventional banks. In rural areas, where access to physical branches is limited, Boost Bank provides a critical alternative through its digital platform.

Amanulla stresses, "We see an opportunity to bridge the gap, especially for micro SMEs and the underserved, by offering products that are accessible, flexible, and relevant to their needs."

Boost Bank’s partnership with local grocery chains in regions like Sabah and Sarawak is a direct attempt to extend its services to these communities. Through these collaborations, customers who shop at participating grocers can earn higher interest rates on savings accounts and access discounts, encouraging both spending and saving. This approach combines financial education with tangible benefits, empowering customers to take control of their finances.

Customer acquisition and retention strategies

Boost Bank has also focused heavily on customer retention through its reward system. Users who maintain an active savings account or use the app for regular transactions receive bonus points, which can be redeemed for rewards or used to lower loan interest rates. This model encourages engagement and long-term loyalty, keeping customers within the Boost ecosystem.

Additionally, the collaboration with grocery partners in Sabah and Sarawak extends Boost Bank’s reach, particularly to rural populations. This initiative not only drives user acquisition but also fosters a sense of community involvement, with customers earning interest by simply shopping at familiar local stores.

Navigating the competitive landscape

While incumbent banks like Maybank, CIMB, and Public Bank dominate Malaysia’s financial sector, Boost Bank does not see itself as a direct competitor. Instead, it positions itself as a complement to these traditional players. Amanulla explains, “We’re not here to compete with the giants, but to fill a gap in the market for those who are underserved.”

With Boost Bank’s data-driven approach, proprietary AI algorithms, and seamless user experience, it offers a distinct proposition that caters to the needs of Malaysia's growing digital economy, particularly for micro-businesses and underserved individuals.

Leadership in the digital era

Amanulla, with her extensive experience in both traditional and digital banking, brings a unique perspective to Boost Bank’s leadership. With over 20 years of experience in banking, she has navigated the challenges of both conventional banking and the fintech landscape. Her leadership style emphasises open-mindedness, adaptability, and collaboration, ensuring that Boost Bank remains at the forefront of Malaysia’s digital banking revolution.

Amanulla’s advice for young leaders, especially women entering the financial services sector, is to embrace challenges with an open mind and to seek collaboration over competition. "Supporting one another is key to succeeding, particularly in an industry that is as dynamic and evolving as banking."

A blueprint for inclusive digital banking

Boost Bank’s innovative hybrid model exemplifies how digital banking can drive financial inclusion in underserved markets. By combining the strengths of Boost’s fintech expertise and RHB’s banking stability, Boost Bank offers a range of products that cater to the needs of individuals and SMEs who are often overlooked by traditional banking institutions.

As Malaysia’s digital banking sector continues to grow, Boost Bank’s customer-centric approach and commitment to financial inclusion serve as a blueprint for other financial institutions looking to innovate and address the needs of a broader population. With its seamless digital services, data-driven financial solutions, and commitment to community-focused innovation, Boost Bank is setting new standards in the world of digital banking.