AEON Credit Service (M) Berhad (AEON Credit) has on Monday announced that its associated company – AEON Bank (M) Berhad (formerly known as ACS Digital Berhad) (AEON Bank) has obtained approval from the Bank Negara Malaysia (BNM) and the Minister of Finance to commence its digital banking operations in Malaysia.

This positions AEON Bank as the first Islamic digital bank in Malaysia, AEON Credit Service said in a statement.

The approval was granted pursuant to BNM’s validation of the Bank’s operational readiness.

AEON Bank is also a subsidiary of AEON Financial Service Co., Ltd. The bank targets to unveil its phased rollout in the first half of this year.

“Our core mission is to advance the promotion of financial inclusion and Islamic banking,” said Raja Teh Maimunah, Chief Executive Officer of AEON Bank.

“As part of one of Malaysia’s most recognized retail household brands, we aim to provide accessible, inclusive, and Shariah-compliant digital banking solutions to our AEON Group of customers as well as to all Malaysians,

“It is our intent to empower our communities with access to digital financial services which are simplified, safe and secure,” he added.

Meanwhile, AEON Credit Managing Director Daisuke Maeda said that this momentous occasion marks a significant leap forward in redefining financial services provided by the AEON Group and reaffirms their commitment in continuing our support for financial inclusivity.

According to the statement, AEON is a highly recognized household name that has served Malaysians nationwide over four decades.

With the Bank within its stable group of companies, the AEON Group aims to further expand and enhance the provision of its services to its retail and wholesale customers as well as ecosystem partners such as its auto dealers, merchants, suppliers, tenants, amongst others.

In addition, the bank’s advocacy of digital technology will facilitate the introduction of new and innovative products for the AEON Group, thus enhancing the overall value proposition for its diverse customer base and ecosystem partners.

“As AEON Group Malaysia celebrates 40 years of trust, we see AEON Bank as an opportunity to provide more to our loyal customers and business partners who have been the bedrock of our success,” Daisuke Maeda emphasized.

It is noted that AEON Credit is one of the leading non-bank financial institutions that has been promoting financial inclusion by providing access to financing to individuals who have traditionally not been able to access funding.

AEON Bank aims to further that commitment by extending financial services to both individuals and small businesses who would not have access to funding and other financial services.

In addition, AEON Bank will also prioritize financial literacy and education initiatives to empower individuals and small businesses with the knowledge and tools to make informed financial decisions.

AEON Bank also plans for a phased rollout of its new App, beginning with an exclusive beta testing phase with the AEON Group of employees.

“As we prepare to introduce our App, we recognize the critical importance of gathering insights and feedback from users to refine and optimize the App,

“By initially offering access to a select group of beta testers, we aim to collaboratively finetune the App to ensure it meets the expectations of our wider user base upon full release,” explained Raja Teh Maimunah.

AEON Bank is a subsidiary of AEON Financial Service Co., Ltd. (AFS Japan) and an associate company of AEON Credit.

AFS Japan is a comprehensive financial group with roots in the retail sector which operates in Japan and ten other countries/regions in Asia, responsible for the AEON Group’s financial services business.

AFS Japan currently consists of 30 consolidated subsidiaries and one equity method affiliate in 11 Asian countries including Japan, Hong Kong, Thailand and Malaysia.

In addition to its approximately 600 sales bases in Japan and overseas, the network also includes AEON Group stores and affiliated merchants, with which AFS Japan has built strong cooperative relationships.

The AEON Group is a pure holding company that comprises eight businesses. It is Japan’s largest retail group.

AEON Credit Service partners Aeon Financial Service to undertake digital Islamic bank business in Malaysia