Malaysia’s first digital-only Islamic bank launched by Bank Muamalat

Bank Muamalat Malaysia has launched ATLAS, the country’s first digital-only Islamic bank, developed in partnership with Netherlands-based banking technology firm Backbase.

The platform aims to deliver fully Shariah-compliant banking services through a digital-first, lifestyle-aligned model.

The launch marks a key milestone in Bank Muamalat’s digital transformation strategy and responds to increasing demand among Malaysian consumers for faith-aligned financial services with digital convenience.

“ATLAS is more than a digital bank. It reflects our commitment to leading the next era of Islamic banking in a digital, inclusive, and purpose-driven manner,” said Khairul Kamarudin, president and chief executive officer of Bank Muamalat. “Our collaboration with Backbase has enabled us to deliver an experience that is seamless, secure, and rooted in faith.”

The platform currently integrates digital onboarding, DuitNow payments, and Islamic financing products. Bank Muamalat said early deployment has improved customer onboarding efficiency and accelerated the rollout of new offerings.

Additional features, including digital debit and credit cards, personal financing, and a Shariah-compliant gold investment account, are expected to be introduced in the coming months. A lifestyle rewards programme is also planned in partnership with selected brands.

The launch aligns with Malaysia’s broader financial sector blueprint 2022–2026, issued by Bank Negara Malaysia, which prioritises digitalisation and financial inclusion. It also positions ATLAS within Southeast Asia’s expanding market for digital Islamic banking, where providers and regulators are actively developing faith-aligned digital services.

Bank Muamalat is expected to continue expanding ATLAS’s offerings to capture a larger share of Malaysia’s Islamic banking sector, particularly among tech-savvy, faith-conscious consumers.