KAF Islamic Digital Bank, Malaysia’s second fully Shariah compliant digital bank (after Aeon Digital Bank), officially began operations on August 8, 2025, after receiving the green light from Bank Negara Malaysia. Developed by KAF Investment Bank in partnership with fintech companies Carsome, MoneyMatch, Jirnexu, and StoreHub, the bank offers Islamic banking services primarily through a mobile app.
Unlike normal bank interest, Kaf deposits are given hibah. Hibah (profit) is a voluntary reward given to customers rather than a guaranteed return (like interest). The bank decides when and how much to provide. For example, during its pilot phase, KAF Digital Bank offered a Hibah of 5.00% per year for account balances up to RM2,000 and 3.00% per year for amounts above RM2,000. These rates were calculated weekly from June 3 to August 5, 2025, and are not indicative of future returns.
The app looks quite empty for now. I was hoping it could be linked to Kenanga Investments’ unit trust purchases, but it seems this feature is not ready yet.