On 8 August 2025, Malaysia welcomed a fresh face in the world of banking; KAF Digital Bank. After months of testing with a small group of users, the bank is now ready for everyone to join, offering a Shariah-compliant digital banking experience that works entirely through its mobile app.
What makes this launch special is not just that KAF is only the second Islamic digital bank in the country, but also the big names behind it.
Backed by KAF Investment Bank and partnered with Carsome, Jirnexu, MoneyMatch, and Storehub, KAF brings together banking know-how and tech innovation to create a modern banking service that fits the lifestyle of today’s Malaysians.
A Fresh Approach to Savings
“We are thrilled to receive the green light from the regulators to open our doors to the public,” said Rafiza Ghazali, Chief Executive Officer of KAF Digital Bank.
The successful completion of our PERINTIS Phase is a testament to the hard work and dedication of our team, and it underscores our commitment to delivering a truly innovative and seamless digital banking experience. We thank the PERINTIS users for their invaluable feedback.”
At the heart of KAF Digital Bank’s offering is the Akaun Simpanan-i (Savings Account-i), which operates under the Islamic concept of Qard. This means deposits are treated as interest-free loans to the bank, to be repaid in full on demand.
Instead of earning interest, account holders receive Hibah; a discretionary gift given by the bank. While Hibah is not guaranteed, historical data from KAF’s pilot phase shows competitive returns that could appeal to many savers:
- 5.00% per annum for the first RM2,000 balance
- 3.00% per annum for balances above RM2,000
Customers can also choose between two account tiers:
- Basic Plus Savings Account-i – Daily outgoing transaction limit of RM5,000; monthly limit of RM20,000.
- Premium Savings Account-i – Daily limit of RM50,000; monthly limit of RM200,000, plus a waived RM12 annual fee for the physical Debit Card-i.
Both tiers come with a free virtual debit card, perfect for online transactions.
A Fully Mobile Banking Experience
KAF Digital Bank has no physical branches. Everything happens in the mobile app. The interface is intentionally simple for ease of use, and the app is available in both English and Bahasa Melayu from day one.
Through the app, customers can:
- Check balances and view transaction history in real time
- Make transfers using DuitNow and DuitNow ID
- Perform QR payments via DuitNow (enabled after the initial cooling-off period)
- Pay bills using the virtual debit card
- Access monthly e-statements and digital receipts instantly
Security is a priority. The app supports biometric logins, PIN authentication, and a proprietary SecureKAF feature that links the account to one registered device. All transaction approvals are completed inside the app, no SMS TAC required, making the process faster and more secure.
Turning Banking into Benefits
One of KAF Digital Bank’s more unique features is its integration with the POD Savings Rewards system, managed through a separate app. Here, customers can earn and redeem POD Points for products, services, or vouchers in the POD Points Marketplace.
To celebrate its launch, KAF is rolling out multiple campaigns:
1. Register & Win
Prizes worth over RM500,000 are up for grabs, including:
- Two Proton e.MAS electric vehicles
- A custom Overlander 4×4
2. “Jom CelikWang Bersama POD” Financial Literacy Campaign
By participating in financial literacy activities, users stand a chance to win:
- Umrah packages for two
- Vouchers for U Mobile and Setel
- MyRapid 50 passes
3. Scan & Collect
Earn 10 POD Points for each DuitNow QR transaction with a minimum RM5 spend in a single receipt. Points can be redeemed for a variety of rewards.
How to Get Started
Opening an account is straightforward, but there are a few important steps:
- Download the KAF Digital Bank app from the Apple App Store or Google Play Store (requires iOS 16+ or Android 13+, not compatible with Huawei devices yet).
- Register your account by entering personal details and completing e-KYC verification with your MyKad.
- Activate your account by depositing at least RM10 from a conventional or Islamic bank account under your name. Transfers from e-wallets or other digital banks are not accepted for activation.
- Receive your virtual debit card instantly after activation.
- Upgrade to Premium by submitting supporting documents like bank statements directly in the app.
As a licensed bank under Bank Negara Malaysia, KAF Digital Bank follows strict Islamic banking principles. It is also a member of Perbadanan Insurans Deposit Malaysia (PIDM), which means deposits are insured up to RM250,000 per depositor.
The Verdict
KAF is more than just another new name in the market. It is one of five licensed digital banks in Malaysia, awarded their licences by Bank Negara Malaysia (BNM) on 29 April 2022 with approval from the Ministry of Finance (MOF). The other four licence holders are:
- GX Bank — led by Grab, the first to launch on 1 September 2023
- Boost Bank — a joint venture between Axiata Group Bhd and RHB Bank Bhd, launched 15 January 2024
- AEON Bank — Malaysia’s first fully Islamic digital bank, launched 26 May 2024
- Ryt Bank — a joint venture between Sea Ltd and YTL Power International Bhd’s wholly owned YTL Digital Capital Sdn Bhd
With AEON Bank paving the way as the first Islamic digital bank, KAF now steps in as the second. While the KAF Digital Bank app is still relatively barebones and the sign-up process could be smoother, its combination of Shariah-compliant banking, competitive Hibah rates, and reward-based incentives makes it a fresh option worth exploring.
For Malaysians looking for a fully digital, Islamic-compliant banking solution that comes with perks, KAF could be an appealing choice.
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