BNM Proposes Financial Inclusion Framework and KYC Guidance

The financial inclusion framework is aligned with the Financial Sector Blueprint 2022-2026 and is intended to serve as a four-year strategic roadmap to advance financial inclusion. The discussion paper outlines the following key strategies that BNM plans to implement to promote financial inclusion in Malaysia:

• Address the gaps and accelerating the advancement of financial inclusion through identified policy objectives: expanding access to financial services for the unbanked population, promoting digital financial services such as mobile banking and e-wallets, increasing access to financial services for those who are currently excluded from the formal financial system, accelerating small and medium enterprise (SME) development through technology and digital adoption, developing a landscape that can meet the needs of the unserved and underserved segments, and improving targeted support for the vulnerable segments
• Strengthen consumer protection measures to ensure that consumers are not taken advantage of by financial institutions; measures include requiring financial institutions to disclose fees and charges in a clear and transparent manner
• Support micro, small, and medium-sized enterprises by providing access to financial services and integrate the two cross-cutting themes within the financial inclusion strategies: embedding gender equality considerations and strengthening impact measurement and evaluation of financial inclusion efforts 
• Use strategic enablers in industry-wide efforts that support the effective implementation of the framework, with these strategic enablers being forging strategic collaborations or partnerships, data sharing, financial infrastructure, and ensuring a regulatory environment

BNM is inviting written feedback on this discussion paper, including suggestions on areas to be clarified and alternative proposals that BNM should consider. The written feedback should be supported by a clear rationale, accompanying evidence or practical examples, where appropriate, to facilitate greater understanding of its context. BNM plans to publish, in 2023, a list of key performance indicators (KPIs) on consultation with stakeholders that will account for the quality of financial services and components of financial capabilities and health.

Related Links

• Press Release on Financial Inclusion Framework
• Proposed Financial Inclusion Framework (PDF)
• Proposal on e-KYC (PDF)