http://www.thestar.com.my/business/business-news/2016/07/21/bank-negara-regulatory-framework-for-fintech-in-q4/
KUALA LUMPUR: The
regulatory framework to enable the adoption of financial technology
(fintech), which is expected to be released by the final quarter of this
year, will create an environment for financial innovation to prosper.
Bank Negara governor Datuk Muhammad Ibrahim (pic)
said the central bank has established a Financial Technology Enabler
Group to formulate and enhance the regulatory framework to facilitate
the adoption of technological innovation in the Malaysian financial
services industry.
He said Bank Negara would come out with a
consultative paper on fintech this month, seeking industry comments and
feedback on the said framework to ensure its effectiveness when
finalised.
As to whether there is any proven framework
that it will benchmark against, he said the central bank would keep an
open mind and look at best practices adopted overseas as well as in the
country.
The various initiatives we have made on payment systems over the years are good examples of fintech, he told Bernama in his inaugural media interview since his appointment as governor on May 1, 2016.
He cited one good example of fintech adopted
by several Islamic banks, the Investment Account Platform (IAP), which
provides an online investment platform to secure funding for projects,
linking individuals, companies and rating agencies.
Islamic banks are ahead in introducing
fintech and I am pleased that they are able to come together as a group
for this platform, he said.
Muhammad stressed that technology, which
fosters strategic alliances among banks, entrepreneurs and service
providers such as telecommunications companies, is the way of the
future.
As espoused by Cisco and other industry
observers, many are eager to ride on the bandwagon of fintech but then,
effective cybersecurity and implementation of security safeguards are
pre-requisites in capturing the digital value of financial services in
Malaysia.
While security issues in banking
institutions have been a pressing and paramount concern lately, Muhammad
explained that this is one area where long-term benefits of
implementing enhanced security features need to be seriously advocated.
Investment for new security measures through new technology pays off and this is an ongoing process, he said.
This, he said, includes improved and
stricter security measures for Automated Teller Machines (ATMs)
especially those located in high-risk areas.
He said the central bank had also issued a
circular to all banking institutions to come up with substantive
measures to improve the security of ATMs, including ink-staining
technology. — Bernama
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