MYDIGITAL ID PHASE 2 SANDBOX INVOLVES 18 BANKS

KUALA LUMPUR, Jan 22 (Bernama) -- Eighteen banking institutions have confirmed participation in the Phase 2 Sandbox for the phased, orderly integration of MyDigital ID into the financial sector, in line with international best practices.

The Phase 2 Sandbox is currently underway to test the new MyDigital ID technology, e-verification, which is the mechanism for verifying a user’s identity when opening a new account and conducting secure real-time banking transactions.

The government, through MyDigital ID Sdn Bhd (MyDID) and Bank Negara Malaysia (BNM), is responsible for implementing MyDigital ID integration with security-by-design, privacy-preserving measures, and auditable governance to ensure a robust, trustworthy system ready for deployment.

“Ten of the 18 banking institutions are currently undergoing the integration process, while two banks have completed integration.

“This Phase 2 Sandbox is expected to conclude in March 2026 and be ready to enter a wider implementation phase, subject to the decisions and preparedness of the respective banking institutions,” the Ministry of Finance (MOF) said in a written response posted today on the Parliament’s official website.

The MOF was responding to Aminolhuda Hassan (PH–Sri Gading) regarding the readiness of banks and financial providers for MyDigital ID integration in terms of security certification, personal data compliance and audit standards.

The MOF also stated that a total of 15 banking institutions participated in the Phase 1 Sandbox testing, which concluded in June 2025, with six successfully completing integration and eight conducting electronic Know Your Customer (e-KYC) tests.

E-KYC is the process of verifying customer identities to prevent fraud.

The MOF emphasised that the government, through BNM, must ensure all banks and financial service providers achieve a high level of readiness and security before the full integration of MyDigital ID can be implemented.

-- BERNAMA