Why Ryt Bank Lets Malaysians Activate Digital Bank Accounts via ATMs

Ryt Bank, the Malaysian digital bank backed by YTL Power International and Sea Limited, has become the first digital bank in the country to allow account activation and initial funding through physical ATMs and bank branches. The move opens an alternative route for users who do not rely on online banking.

What was the barrier?

While opening a digital bank account is done entirely on a smartphone, the final activation step traditionally requires an initial deposit transferred from an existing bank account through online banking. That creates an immediate barrier for people who do not use or cannot access online banking facilities.

How does the new activation process work?

Through its participation in the Interbank GIRO (IBG) network, Ryt Bank has expanded its activation pathways. Customers complete the standard electronic Know Your Customer (eKYC) process on the Ryt Bank mobile app, then fund their new accounts by performing a transfer at a traditional ATM or over the counter at a physical bank branch.

Ryt Bank does not specify a fixed minimum for offline transfers. According to its FAQ, the required transfer amount depends on the cash denominations supported by the chosen ATM or branch channel. The bank states that accounts will be activated within one working day once the funds are successfully received.

Why does this matter for Malaysia?

Ryt Bank Interim Chief Executive Officer Wilson Soon noted that for many Malaysians, daily financial transactions are still heavily reliant on physical branches or ATMs. By offering an alternative activation route, the digital bank is lowering the barrier for users taking their first step into digital financial services.

Instead of expecting all customers to adopt a strictly digital-only process from the start, the bank is integrating traditional offline funding methods to cater to specific demographics. The approach aligns with the mandate for digital banks in Malaysia to serve unbanked and underbanked communities by accommodating their current banking habits rather than forcing an immediate shift to external online banking platforms.

FAQ

Which companies back Ryt Bank?

Ryt Bank is backed by YTL Power International and Sea Limited.

Do customers need online banking to activate the account?

No. After completing eKYC on the app, customers can fund the account through a transfer at an ATM or over the counter at a physical bank branch.

Is there a minimum amount for offline activation?

Ryt Bank does not set a fixed minimum. The required amount depends on the cash denominations supported by the selected ATM or branch channel, according to its FAQ.

How long does activation take?

The bank says accounts will be activated within one working day once the funds are successfully received.

Source: SoyaCincau