Eighteen banks are taking part in the Phase 2 Sandbox for MyDigital ID, as Malaysia tests the rollout of its digital identity system in the financial sector.
The sandbox allows banks to trial MyDigital ID’s e-verification technology, which securely verifies users’ identities for account openings and real-time banking transactions. Ten banks are currently in the integration process, while two have completed it. The sandbox phase is expected to finish by March 2026, after which wider implementation will depend on each bank’s readiness.
The initiative, led by MyDigital ID Sdn Bhd and Bank Negara Malaysia, follows international best practices with strong privacy, security, and audit measures to ensure a safe and trustworthy system.
Phase 1 of the sandbox, completed in June 2025, involved 15 banks, with six fully integrated and eight performing electronic Know Your Customer (e-KYC) tests. The Ministry of Finance stressed that full integration will only proceed once all banks meet high standards for security and compliance.
