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🇲🇾 Malaysia /Technology

Malaysia to Implement Open Finance by 2027, Enhancing User Control Over Financial Data

From Utusan Malaysia · () Malay

Translated from Malay and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Malaysia is set to implement "open finance" by 2027, giving users greater control over their financial data sharing.
  • The initiative, led by Bank Negara Malaysia (BNM) in collaboration with Payments Network Malaysia (PayNet), aims to enable secure data sharing among financial service providers for a smoother customer experience.
  • Users will have the ability to view and withdraw consent for data sharing at any time, with participation being voluntary and based on an opt-in model, adhering to strict privacy and security standards.

Malaysia is poised to embrace a new era of financial empowerment with the upcoming implementation of "open finance," a groundbreaking initiative spearheaded by Bank Negara Malaysia (BNM). Slated for an initial phase starting in 2027, this move promises to significantly enhance user control over their financial data, marking a pivotal shift towards a more transparent and customer-centric financial ecosystem.

Customers will also be able to easily view the consent they have given and withdraw that consent at any time. Participation is voluntary and based on the opt-in concept.

· Bank Negara Malaysia (BNM)Explaining the user-centric approach to data sharing under open finance.

The core objective of open finance is to foster secure and seamless data sharing among various financial service providers. This collaborative approach, developed in close partnership with Payments Network Malaysia (PayNet) and the broader financial industry, aims to create a more integrated and efficient customer experience. BNM assures that stringent privacy and security standards will be upheld, ensuring that data sharing is conducted responsibly and ethically.

Participants are subject to strict privacy and security standards. PayNet only serves to facilitate secure and encrypted financial data sharing.

· Bank Negara Malaysia (BNM)Detailing the security measures and the role of PayNet in the open finance initiative.

A key feature of this initiative is the empowerment of consumers. Users will have the explicit right to grant, view, and revoke consent for their financial data to be shared, operating on a voluntary, opt-in basis. PayNet will act as a facilitator for secure, encrypted data sharing, without having access to or storing customer financial data itself. This framework operates under the purview of the Personal Data Protection Act (PDPA) and other relevant legislation, reinforcing the commitment to safeguarding user information.

PayNet does not have access to view or store customer financial data. Financial data sharing is subject to the Personal Data Protection Act (PDPA) and other relevant laws.

· Bank Negara Malaysia (BNM)Clarifying the limitations of PayNet's access and the legal framework governing data sharing.

BNM's proactive stance also includes establishing clear dispute resolution procedures and accessible complaint channels. The central bank has pledged to take action against financial institutions that fail to protect customer information transmitted through the open finance framework. This commitment underscores BNM's dedication to building trust and ensuring the integrity of the financial system as it evolves.

BNM will take action against financial institutions that fail to protect customer information transmitted through open finance.

· Bank Negara Malaysia (BNM)Stating the consequences for non-compliance with data protection regulations.
About this summary

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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