How to Open a KAF Digital Bank Account in Malaysia (Step-by-Step)

You can open a KAF Digital Bank account entirely on your phone in under 15 minutes. The process requires your MyKad, a working phone camera, and a RM10 seed transfer from an existing Malaysian bank account.

KAF Digital Bank Berhad launched publicly on 8 August 2025, making it Malaysia’s second fully Islamic digital bank licensed by Bank Negara Malaysia. Every product it offers is Shariah-compliant, so there are no conventional interest (riba) products on the platform at all. This guide walks you through eligibility, the exact e-KYC steps, and what to expect once your account is live.

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Key takeaways

• KAF Digital Bank is Malaysia’s second Islamic digital bank, licensed by Bank Negara Malaysia and live since August 2025.
• Only Malaysian citizens aged 18 and above are eligible at present.
• Account opening is done entirely in-app via e-KYC using your MyKad; no branch visit is required.
• A minimum first deposit of RM10 is needed to activate the account, and it must come from a Malaysian bank account in your name (no e-wallets, no third-party transfers).
• Deposits are protected by PIDM up to RM250,000 per depositor.
• Returns are paid as hibah (discretionary gift), not fixed interest; historical rates have been around 5.00% p.a. for balances up to RM2,000 and 3.00% p.a. above that threshold.

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Who is eligible to open a KAF Digital Bank account?

Before downloading the app, confirm you meet all three criteria:

Criterion	Requirement
Nationality	Malaysian citizen only (MyKad holder)
Minimum age	18 years old and above
Device	iOS 16+ or Android 13+ (Huawei devices not supported currently)
Identification	Valid MyKad (physical card needed for NFC scan or photo capture)
Seed deposit source	Personal Malaysian bank account in your name (conventional or Islamic)

Non-citizens and permanent residents are not yet supported. KAF has not published a timeline for opening eligibility to non-Malaysians.

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Step-by-step: how to open a KAF Digital Bank account

Step 1: Download the KAF Digital Bank app

Search for “KAF Digital Bank” on the Apple App Store or Google Play Store. The developer name is KAF Digital Bank Berhad. Install the app and open it.

Step 2: Tap “Register” and enter your mobile number

The app links your account to a Malaysian mobile number. You will receive a one-time password (OTP) via SMS. Enter the OTP to proceed.

Step 3: Set up your login credentials

Create a 6-digit passcode and, if your device supports it, enable biometric login (fingerprint or Face ID). These will be your day-to-day authentication methods.

Step 4: Complete e-KYC identity verification

This is the core compliance step required under Bank Negara Malaysia’s e-KYC framework. The process has three parts:

1. MyKad scan: The app prompts you to scan the front and back of your MyKad. Some devices support NFC chip reading, which is faster and more accurate. If NFC is unavailable, use the camera option and ensure the card is flat, well-lit, and all four corners are visible.

2. Selfie and liveness check: You will be asked to look into the camera and follow on-screen prompts, such as blinking or turning your head slightly. This biometric step matches your live face against your MyKad photo.

3. Personal details confirmation: Review the information extracted from your MyKad. Correct any field if needed before submitting.

The e-KYC check is automated and typically takes two to five minutes. Poor lighting and a damaged MyKad photo are the most common failure causes; you can retry immediately.

Step 5: Accept terms and conditions

Review KAF’s account terms, the Qard contract governing your savings account, and the privacy notice. The key Islamic finance point: your deposit is treated as an interest-free loan to the bank (Qard), and any return paid to you is hibah (a discretionary gift), not contractually guaranteed profit.

Step 6: Make your RM10 activation deposit

Once your identity is verified, the app displays your new account number. You must transfer at least RM10 into this account from a personal Malaysian conventional or Islamic bank account bearing your name. Important restrictions:

• E-wallets (Touch ‘n Go, Boost, GrabPay) are not accepted for this step.
• Transfers from other digital banks are not accepted for activation.
• The sending account must be in your own name (joint accounts are fine if your name appears as a holder).

Use DuitNow or IBG to send the RM10. The account activates as soon as the transfer is received.

Step 7: Receive your virtual debit card

Once the seed deposit clears, KAF issues a virtual Mastercard debit card instantly to your app. You can use it immediately for online purchases. A physical debit card option may be requested through the app separately.

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KAF Digital Bank’s Islamic account features explained

Savings Account-i (Akaun Simpanan-i)

KAF operates under the Islamic Finance concept of Qard. Your deposits are treated as a loan you extend to the bank at zero cost. The bank agrees to return the full amount on demand. There is no riba involved.

Returns are paid as hibah, meaning the bank gives you a discretionary payout as a goodwill gesture. Hibah is not contractually obligated, which differs from a guaranteed profit rate. In practice, KAF has been paying hibah weekly, and historical rates during the Perintis pilot (June to August 2025) were approximately 5.00% p.a. on the first RM2,000 and 3.00% p.a. on the balance above RM2,000. These figures can change without notice.

Basic Savings Account-i vs. Premium Savings Account-i

KAF offers two tiers of savings accounts. The Basic account has no minimum balance requirement and is suitable for everyday use. The Premium account may carry conditions for a higher hibah tier; check the app for the current rate card as terms can be updated.

No riba, no conventional products

Every product on the KAF platform is certified by its Shariah Supervisory Committee. There are no conventional loan products or fixed-deposit structures, making KAF one of the few fully Islamic end-to-end digital banking options in Malaysia.

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PIDM deposit protection

Deposits held with KAF Digital Bank are protected under the Malaysia Deposit Insurance Corporation (PIDM) scheme, up to RM250,000 per depositor per member institution. You can verify KAF’s PIDM membership at the PIDM official website.

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Common issues and how to resolve them

Problem	Likely cause	What to do
e-KYC fails repeatedly	Poor lighting or damaged MyKad photo	Move to bright natural light; ensure card lies flat with no glare
OTP not received	Network issue or wrong number	Check mobile signal; request OTP again after 60 seconds
Activation deposit rejected	Sent from e-wallet or third-party account	Re-send from your own Malaysian bank account by name
App not compatible	Older iOS or Android version	Update your device OS to iOS 16+ or Android 13+
Huawei device not supported	App not on AppGallery	Use a non-Huawei device; no timeline given for Huawei support

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How KAF compares to other Malaysian digital banks

For a broader picture of Malaysia’s digital banking landscape, see our guide on digital banks and e-wallets in Malaysia. If you are evaluating conventional savings options alongside Islamic ones, our current account explainer covers when a transaction account makes more sense than a savings account.

Feature	KAF Digital Bank	GX Bank	Boost Bank
Islamic or conventional	Fully Islamic	Conventional	Conventional
BNM licence	Yes	Yes	Yes
PIDM protection	RM250,000	RM250,000	RM250,000
Min. opening deposit	RM10	None	None
Returns basis	Hibah (discretionary)	Interest	Interest
Indicative rate (mid-2025)	~5.00% p.a. first RM2,000	Varies	Varies

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Frequently asked questions

Is KAF Digital Bank Shariah-compliant? Yes. KAF Digital Bank Berhad holds an Islamic digital banking licence from Bank Negara Malaysia. All its products are governed by a Shariah Supervisory Committee, and the savings account operates on the Qard principle. There are no riba-based products on the platform.

Can non-Malaysians open a KAF Digital Bank account? Not at this time. KAF’s current onboarding accepts only Malaysian citizens holding a valid MyKad. Permanent residents and foreign nationals are not yet eligible. Check the KAF Help Centre for any updates to this policy.

Is the hibah rate guaranteed? No. Hibah is a discretionary payment. KAF is not contractually obligated to pay any specific return. The bank publishes historical hibah rates to give customers a reference point, but these can change at any time. This is standard practice for Qard-based Islamic deposit accounts.

What happens if I lose my phone? Contact KAF’s customer support through the app’s chat or helpline to freeze your account. Enable screen lock on your phone as a baseline precaution, since your virtual debit card lives entirely in the app.

Are my deposits safe with KAF Digital Bank? Yes. PIDM protects your deposits up to RM250,000 per depositor. KAF Digital Bank Berhad is a licensed institution under Bank Negara Malaysia’s supervision.

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Information in this guide is based on KAF Digital Bank’s published terms and public sources as of June 2026. Hibah rates and product features may change; always verify the latest terms in the KAF Digital Bank app or at the KAF Help Centre before making financial decisions.