Muhammad bin Ibrahim: Developing a safe and secure electronic payment ecosystem to promote financial inclusion Speech by Mr Muhammad bin Ibrahim, Deputy Governor of the Central Bank of Malaysia (Bank Negara Malaysia), at the Regulatory Forum for the Asia Pacific Region: “Developing a Safe and Secure Electronic Payment Ecosystem to Promote Financial Inclusion”, Kuala Lumpur, 4 August 2014. *  *  *  Ladies and gentlemen, it is my pleasure to be here today to deliver the Keynote Speech for MasterCard’s Regulatory Forum for the Asia Pacific region with the theme “Developing a Safe and Secure Electronic Payment Ecosystem to Promote Financial Inclusion”. With 2.5 billion people across the world still unbanked, financial inclusion is a significant global agenda to ensure that all segments of the society, including the most vulnerable groups, have access and usage of quality and affordable financial services. This forum, which brings together regulators, international financial institutions and other payment system stakeholders, is an important platform to surface and exchange ideas on emerging trends, risks and opportunities in the use of cost-effective electronic payment system to drive financial inclusion. Over the years, Bank Negara Malaysia has taken many measures in promoting financial inclusion and in accelerating the country’s migration to electronic payments (e-payments). I will share some of my thoughts on the key areas in the payment value chain that could drive and expand the financial inclusion agenda via e-payments.
Such efforts would be effective when complemented with a consumer protection framework and product disclosure requirements that would instil user confidence and acceptance. Bank Negara Malaysia constantly collaborates with the industry to conduct roadshows, payment system forums and other outreach programs to educate the public of the benefits and security of e-payment transactions. Apart from issuing requirements on consumer protection and product disclosure, an important milestone was achieved last year where protecting the rights and interests of consumers of financial services and products has been enshrined as one of regulatory objectives that Bank Negara Malaysia shall strive for in the Financial Services Act 2013 and the Islamic Financial Services Act 2013. Conclusion Ladies and gentlemen, we are now living in an exciting time with rapid technological advances in e-payments which, if harnessed well, would serve to drive financial inclusion in a major way. To be successful in an increasingly competitive payment space, the industry should adopt a long term horizon and be prepared to sacrifice immediate term profits in order to sustain its profits and build affordable and sustainable e-payment solutions that cater to the needs of  BIS central bankers’ speeches  5  the masses, including the unbanked and the underbanked. Collective efforts to build and share infrastructure would be a step in the right direction. Policymakers on the other hand have the duty to create the enabling environment by removing price distortions, promoting competition and protecting the interest of consumers.