Malaysia is testing MyDigital ID integration with 18 banks

Malaysia’s banking sector is moving toward biometric-enabled digital identity, with 18 banks now participating in the second testing phase of the country’s MyDigital ID programme.

The Ministry of Finance disclosed the update in a parliamentary response, noting that Phase 2 of the sandbox is focused on digital verification. Ten banks are currently integrating the system while two have already completed technical onboarding, reports Bernama.

MyDigital ID Sdn Bhd and Bank Negara Malaysia are overseeing the rollout. Regulators emphasized that nationwide deployment will only proceed once institutions demonstrate operational readiness and compliance with strict security requirements.

The second testing phase is scheduled to conclude in March 2026, after which regulators will assess whether the system is ready for broader implementation. The first sandbox phase was completed in June 2025 and saw 15 banks participate, with six completing full integration and eight conducting eKYC trials.

Malaysia’s phased approach highlights the opportunities and challenges of embedding national digital identity into financial infrastructure. The signs point to scaling up if the phases prove successful.

The Southeast Asian country is intent on MyDigital ID and plans to integrate 95 percent of public services with the national digital ID system by 2030. Private services have also been touted as an added value to ramp up registrations.

To realize the program, the system needs more users, and the government set a target of 15 million MyDigital ID users by the end of 2025. Budget allocation has been established for 2026, with the national digital ID project to encompass sectors such as finance, communications, healthcare and e-trading. Already, telecommunications services are being integrated with SIM cards required to be activated using MyDigital ID.

Article Topics

banking  |  digital ID  |  identity verification  |  KYC  |  Malaysia  |  MyDigital ID