By embedding innovation into ESG-led digital platforms, Alliance Bank’s virtual credit card is setting a new benchmark for payments security and customer control
The rise of e-commerce and concerns over online payment security have driven banks across Southeast Asia to rethink credit card design. Alliance Bank Malaysia has met this challenge head-on with a solution that reimagines how customers engage with digital payments. Rooted in user empathy and aligned with ESG goals, the bank launched a first-in-Malaysia virtual credit card (VCC) that prioritises security, flexibility and customer empowerment.
Embedded banking meets agile design
Developed using an agile business development framework, the VCC was launched in 2022 with open-banking functionality embedded directly into merchant apps. Through a proprietary software development kit (SDK), business owners can integrate Alliance Bank’s credit solution into their platforms with minimal friction or cost. This embedded model not only extends credit options to customers but also alleviates the compliance burden from merchants, ensuring no customer data is stored on third-party platforms.
For customers, the benefits are tangible. The VCC enables dynamic card numbers (DCNs) for one-time or subscription payments, allowing users to tailor card controls such as transaction limits, expiry dates and number of charges. If a transaction appears suspicious, customers can freeze or delete the card instantly via mobile, eliminating the need for long call centre queues or card replacements.
Seamless, paperless and ESG-aligned
Beyond convenience, the initiative also eliminates the use of physical cards and paper-based forms. All applications, statements and transactions are conducted digitally, supporting Alliance Bank’s broader sustainability agenda. The mobile-first model integrates multi-factor authentication, facial biometrics and secure API gateways, offering a robust yet seamless customer journey.
By October 2024, the bank had issued more than 67,000 VCCs, significantly accelerating card acquisition without sales staff intervention. Processing time for card applications dropped from five days to under two and card replacements due to fraud now take under a minute through the app.
This customer-led, API-powered innovation in embedded banking has earned Alliance Bank Malaysia the Most Innovative Payments Initiative award at the Retail Banker International Asia Trailblazer Awards 2025. The bank has also been recognised for its SME strategy, receiving the Best SME Product Initiative award.