KUALA LUMPUR: AEON Bank (M) Bhd is strengthening its inclusivity-driven banking proposition with the introduction of low-cost takaful protection plans, while gaining early traction in its personal financing product and business banking platform, AEON Bank Biz.
Earlier this month, the Islamic digital bank raised RM250mil through the subscription of 250 million new shares at RM1 each by its shareholders, Aeon Credit Service (M) Bhd
and AEON Financial Service Co Ltd, both ultimately owned by Japan’s AEON Group.
The injection raised AEON Bank’s issued shares to 800 million, valuing the bank at RM800mil based on the nominal share price.
AEON Bank chief executive officer Raja Teh Maimunah Raja Abdul Aziz said the fresh capital provides additional lending headroom, strengthens the balance sheet and supports Bank Negara Malaysia’s (BNM) phased capital requirements.
Under BNM’s requirements, digital banks must maintain a minimum of RM100mil in unimpaired capital during the foundational phase, rising to RM300mil thereafter.
Asked whether the injection was primarily for regulatory compliance, she said: “Partly. One is the capital retirement, of course, but we also need capital to continue to lend. We need capital to continue to grow.”
AEON Bank launched its personal financing offering a couple of weeks ago, and Raja Teh said the early response has been “amazing”.
“In just two weeks, we’ve written RM3mil,” she told StarBiz on the sidelines of AEON Bank and Zurich Malaysia’s launch of two syariah-compliant takaful products.
She said the bank uses risk-based pricing to offer differentiated rates based on credit quality.
“Our rates are very dynamic. It is not one price for all. If have a better credit status, your rate is lower.”
On the deposit front, AEON Bank maintains about RM400mil – consistent with levels reported in August. Raja Teh added deposits are managed in line with asset growth rather than aggressively driven.
“As our financing or assets go up, then we will be pushing deposits. Otherwise, deposits are a balancing number relative to financing assets.”
For its business banking segment, Raja Teh said AEON Bank Biz, launched in August, has brought aboard 300 enterprises, largely from AEON’s ecosystem.
She said the platform functions as a full cash-management system capable of supporting small businesses and large listed companies alike. “Payment functionality for businesses is very complex,” she said, noting the need for maker-checker-approver flows.
She added that two public-listed sister companies are already using the platform.
Additionally, she said the bank is currently piloting working capital and term financing solutions for enterprises, with a full rollout expected next year.
Raja Teh said inclusivity remains central to the bank’s mandate, noting that 67% of its customers are aged between 18 and 38, and 66% transact at least once a month.
To deepen access to financial protection, AEON Bank has partnered with Zurich Malaysia to introduce two low-cost syariah-compliant takaful plans embedded directly within its app.
“Our real mandate is inclusivity. When you talk about inclusivity, the focus is providing protection to all Malaysians – especially young Malaysians, including gig workers and digital nomads,” she said, adding that Malaysia’s current protection uptake remains low.
AEON Bank chief personal banking officer Aizuddin Danian Izham Cheong noted that only 51.5% of Malaysians are currently protected by insurance or takaful.
“In addition to the youth segment and the groups we are targeting now, this is a great way for anyone who wants protection to get an easy start,” he said.
Zurich Malaysia country chief executive Junior Cho said the collaboration reflects its commitment to making protection accessible and easy to obtain.
“We want to care for what matters. If people feel safe, supported and secure in their futures, they can focus on what really matters in their lives,” he said. “Accidents and unfortunate events are unpredictable, and affordable protection helps Malaysians prepare for the unexpected.”
Raja Teh added that higher-coverage plans are also in development to cater to groups such as Gen X.
She said the bank is simultaneously enhancing its personal financial management tools, including a spending insights feature driven by artificial intelligence (AI).
“What we’ve discovered is that customers who use our AI-driven spending insights transact two and a half times more and place deposits with us twice as much,” she said.
