This is set to change with the implementation of JomPAY, which is a common and open platform that allows customers of any bank to make online bill payments to any merchant registered with JomPAY. In other words, a merchant will be able to receive payments from customers across all participating banks. This would not only reduce duplication of investment costs by the banks, but also bring about greater convenience, cost savings and efficiency gains to both consumers and merchants. JomPAY is targeted to be rolled-out in phases starting from next month. (In the next presentation, the Director of Payment Systems Policy Department will provide you with further details of the supporting e-payment infrastructure and the strategies undertaken by Bank Negara Malaysia to accelerate the country’s migration to e-payments.) d.  Safeguarding the security of transactions  Ladies and gentlemen, let me now move on to the issue of security and consumer confidence in the use of online banking and e-payments. Considerable efforts have also been taken by the industry to improve user confidence in the use of payment cards. As I mentioned earlier, the banking industry had migrated our payment cards to the more secure chip-based cards in 2005. The investment cost of RM200 million was subsequently recovered through the projected fraud savings in just two and a half years.
Secondly, we need to double our efforts to raise the level of awareness on the basic safety steps to deter payment fraud. The recent 2-month long “Think Online Safety, Think C.A.R.D.” campaign, jointly organised by the Association of Banks in Malaysia (ABM) and the NCG, to promote safe online payment practices, is a step in the right direction. The final session of the campaign will be held in Sasana Kijang today. Similar campaigns should be organised and expanded to reach a wider segment of the Malaysian population. iii. Thirdly, the industry should ensure the timely implementation of JomPAY. This would enable both consumers and businesses across the country to benefit from the strong value proposition that JomPay will create in increasing the efficiency and convenience of online bill payments. iv. Fourthly, banking institutions should conduct regular reviews on the adequacy and robustness of payment system risk management measures and the effectiveness of consumer protection measures. Where the review discloses gaps and inadequacies, banks must take immediate steps to rectify the weaknesses to preserve public confidence. Adequate resources must be allocated to this effort. v.  Fifthly, as part of the overall improvement in customer service, the banking industry should keep customers adequately informed of the dispute resolution procedures, in the event of fraud. Any disputes should be resolved in a timely manner.