Great Eastern's fintech move in Malaysia may open digital banking door to OCBC

OCBC Bank may be facing the prospects of a digital banking licence in Malaysia, if a deal made by its insurance arm Great Eastern in late June is anything to go by.

Great Eastern, among the largest insurers in Malaysia, has moved to invest US$70 million in Axiata Digital's financial-services business. With the investment, Great Eastern will hold just over 20 per cent in a new entity known as Boost Holdings, with Axiata Digital Services, the digital arm of Malaysia's major telco, controlling the rest.

The insurer said just a few weeks ago that the move would allow it to "participate in Axiata's growing fintech expansion plans in the region".