Malaysia : Sustainable Adoption of Innovative Channels for Financial Inclusion
This note focuses on the regulatory and market environment relevant to the emergence and adoption of innovative delivery channels to promote greater financial inclusion in Malaysia. Financial inclusion is defined here not only as providing access t...
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| Format: | Financial Sector Assessment Program (FSAP) |
| Language: | English en_US |
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Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/01/18639521/malaysia-sustainable-adoption-innovative-channels-financial-inclusion-technical-note http://hdl.handle.net/10986/16729 |
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okr-10986-16729 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO BANK ACCESS TO SERVICES ACCOUNT BALANCE ACCOUNT BALANCES ACCOUNT HOLDERS ACCOUNT NUMBER ACCOUNTING ALTERNATIVE PRODUCTS ANTI-MONEY LAUNDERING ATM AUTHENTICATION BANK ACCESS BANK ACCOUNT BANK ACCOUNTS BANK BRANCH BANK NEGARA MALAYSIA BANK SERVICES BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING SYSTEMS BANKS BARRIER BILL PAYMENTS BUSINESS ENVIRONMENT BUSINESS MODEL BUSINESS MODELS BUSINESS NEEDS BUSINESS OBJECTIVES BUSINESS SERVICES BUSINESSES CAPABILITY CAPITAL MARKETS CARD PURCHASES CASH PAYMENTS CASH TRANSACTIONS CASH WITHDRAWALS CASHLESS TRANSACTIONS CENTRAL BANK CHARGE CARDS CLIENT INFORMATION COMMERCIAL BANKS CONDUCT REQUIREMENTS CONSUMER LOANS CONSUMER PROTECTION CORPORATE CLIENTS COST SAVINGS CREDIT CARD CREDIT CARDS CRIMINAL PURPOSES CROSS SUBSIDIES DEBIT CARD DEBIT CARDS DEPOSIT DEPOSITS DETECTION SYSTEMS DIRECT DEBIT DISTRIBUTION CHANNELS DISTRIBUTION NETWORK DISTRIBUTION NETWORKS DOMESTIC BANKS DUE DILIGENCE E-BANKING E-COMMERCE E-MONEY E-MONEY SCHEMES E-PAYMENTS ELECTRONIC BANKING ELECTRONIC MONEY ELECTRONIC PAYMENT ELECTRONIC PAYMENTS ELECTRONIC TRANSACTIONS ELECTRONIC TRANSFER ELECTRONIC TRANSFER OF FUNDS ELECTRONIC TRANSFERS EMONEY ENCRYPTION EXISTING FINANCIAL SERVICES FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL PRODUCTS FINANCIAL SECTOR FINANCIAL SECTOR STABILITY FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN BANKS FRAUD FRAUDS FUND TRANSFERS GOVERNANCE STANDARDS GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT HARDWARE ID ID NUMBER IDENTIFICATION IDENTIFICATION SYSTEMS IDENTITY FRAUD INCOME INCOME LEVELS INDEBTEDNESS INNOVATION INNOVATIONS INSTITUTION DEVELOPMENT INTERFACE INTERFACES INTERNAL CONTROLS INTERNATIONAL BANK INTERNET BANKING INTERNET USERS INTEROPERABILITY ISLAMIC BANKING ISLAMIC BANKS LAND DEVELOPMENT LARGE VALUE PAYMENT LEVEL PLAYING FIELD LIBERALIZATION LIVING STANDARD LOCAL BANKS MARKET ENVIRONMENT MARKET PARTICIPANTS MARKET PLAYERS MARKETING MASS MARKET MATERIAL MEDIUM ENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MIDDLE-INCOME COUNTRIES MOBILE BANKING MOBILE NETWORK MOBILE PHONE MOBILE PHONES MONETARY FUND MONOPOLY MULTIMEDIA NATIONAL SAVINGS NETWORKS NEW ENTRANTS NEW PRODUCTS NONBANKS ONLINE SYSTEM OPEN ACCOUNTS OUTSOURCING PAYMENT CARD PAYMENT CARD TRANSACTIONS PAYMENT INSTRUMENT PAYMENT INSTRUMENTS PAYMENT NETWORK PAYMENT PRODUCTS PAYMENT SERVICE PAYMENT SERVICES PAYMENT SYSTEM PAYMENT SYSTEMS PAYMENT TRANSACTIONS PAYMENTS INFRASTRUCTURE PAYMENTS SYSTEM PAYMENTS SYSTEMS PHONE NUMBER PHYSICAL ACCESS POINT OF SALE POLICY FRAMEWORK POST OFFICE POST OFFICES PRICING PRACTICES PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT INNOVATION PROFITABILITY PROTOCOL PUBLIC BANK RAPID EXPANSION REAL TIME DEBIT REAL TIME GROSS SETTLEMENT REGULATOR REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REGULATORY FRAMEWORKS RELIABILITY REMITTANCES RESULT RETAIL PAYMENT RETAIL PAYMENT SYSTEMS RETAIL PAYMENTS RISK MANAGEMENT RISK-MANAGEMENT RTGS SAVINGS SAVINGS BANK SECURITIES SECURITY FEATURES SERVICE PROVIDER SERVICE PROVIDERS SETTLEMENT SYSTEMS SITES SMALL PAYMENTS SMART CARD SMART CARDS STAKEHOLDERS STANDARD MEASUREMENT SUPERMARKET SUPERVISION SUPERVISORY FRAMEWORK TARGETS TAX TELECOMMUNICATION TELECOMMUNICATIONS TELECOMMUNICATIONS INFRASTRUCTURE TERRORISM TERRORIST TRANSACTION TRANSACTION COSTS TRANSACTION VOLUME TRANSACTION VOLUMES USER USER EXPERIENCE USER INTERFACE USERS USES VALUE PAYMENT SYSTEM VERIFICATION VERIFICATIONS WIRELESS COMMUNICATIONS WITHDRAWAL WITHDRAWAL FACILITIES |
| spellingShingle |
ACCESS TO BANK ACCESS TO SERVICES ACCOUNT BALANCE ACCOUNT BALANCES ACCOUNT HOLDERS ACCOUNT NUMBER ACCOUNTING ALTERNATIVE PRODUCTS ANTI-MONEY LAUNDERING ATM AUTHENTICATION BANK ACCESS BANK ACCOUNT BANK ACCOUNTS BANK BRANCH BANK NEGARA MALAYSIA BANK SERVICES BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING SYSTEMS BANKS BARRIER BILL PAYMENTS BUSINESS ENVIRONMENT BUSINESS MODEL BUSINESS MODELS BUSINESS NEEDS BUSINESS OBJECTIVES BUSINESS SERVICES BUSINESSES CAPABILITY CAPITAL MARKETS CARD PURCHASES CASH PAYMENTS CASH TRANSACTIONS CASH WITHDRAWALS CASHLESS TRANSACTIONS CENTRAL BANK CHARGE CARDS CLIENT INFORMATION COMMERCIAL BANKS CONDUCT REQUIREMENTS CONSUMER LOANS CONSUMER PROTECTION CORPORATE CLIENTS COST SAVINGS CREDIT CARD CREDIT CARDS CRIMINAL PURPOSES CROSS SUBSIDIES DEBIT CARD DEBIT CARDS DEPOSIT DEPOSITS DETECTION SYSTEMS DIRECT DEBIT DISTRIBUTION CHANNELS DISTRIBUTION NETWORK DISTRIBUTION NETWORKS DOMESTIC BANKS DUE DILIGENCE E-BANKING E-COMMERCE E-MONEY E-MONEY SCHEMES E-PAYMENTS ELECTRONIC BANKING ELECTRONIC MONEY ELECTRONIC PAYMENT ELECTRONIC PAYMENTS ELECTRONIC TRANSACTIONS ELECTRONIC TRANSFER ELECTRONIC TRANSFER OF FUNDS ELECTRONIC TRANSFERS EMONEY ENCRYPTION EXISTING FINANCIAL SERVICES FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL PRODUCTS FINANCIAL SECTOR FINANCIAL SECTOR STABILITY FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN BANKS FRAUD FRAUDS FUND TRANSFERS GOVERNANCE STANDARDS GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT HARDWARE ID ID NUMBER IDENTIFICATION IDENTIFICATION SYSTEMS IDENTITY FRAUD INCOME INCOME LEVELS INDEBTEDNESS INNOVATION INNOVATIONS INSTITUTION DEVELOPMENT INTERFACE INTERFACES INTERNAL CONTROLS INTERNATIONAL BANK INTERNET BANKING INTERNET USERS INTEROPERABILITY ISLAMIC BANKING ISLAMIC BANKS LAND DEVELOPMENT LARGE VALUE PAYMENT LEVEL PLAYING FIELD LIBERALIZATION LIVING STANDARD LOCAL BANKS MARKET ENVIRONMENT MARKET PARTICIPANTS MARKET PLAYERS MARKETING MASS MARKET MATERIAL MEDIUM ENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MIDDLE-INCOME COUNTRIES MOBILE BANKING MOBILE NETWORK MOBILE PHONE MOBILE PHONES MONETARY FUND MONOPOLY MULTIMEDIA NATIONAL SAVINGS NETWORKS NEW ENTRANTS NEW PRODUCTS NONBANKS ONLINE SYSTEM OPEN ACCOUNTS OUTSOURCING PAYMENT CARD PAYMENT CARD TRANSACTIONS PAYMENT INSTRUMENT PAYMENT INSTRUMENTS PAYMENT NETWORK PAYMENT PRODUCTS PAYMENT SERVICE PAYMENT SERVICES PAYMENT SYSTEM PAYMENT SYSTEMS PAYMENT TRANSACTIONS PAYMENTS INFRASTRUCTURE PAYMENTS SYSTEM PAYMENTS SYSTEMS PHONE NUMBER PHYSICAL ACCESS POINT OF SALE POLICY FRAMEWORK POST OFFICE POST OFFICES PRICING PRACTICES PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT INNOVATION PROFITABILITY PROTOCOL PUBLIC BANK RAPID EXPANSION REAL TIME DEBIT REAL TIME GROSS SETTLEMENT REGULATOR REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REGULATORY FRAMEWORKS RELIABILITY REMITTANCES RESULT RETAIL PAYMENT RETAIL PAYMENT SYSTEMS RETAIL PAYMENTS RISK MANAGEMENT RISK-MANAGEMENT RTGS SAVINGS SAVINGS BANK SECURITIES SECURITY FEATURES SERVICE PROVIDER SERVICE PROVIDERS SETTLEMENT SYSTEMS SITES SMALL PAYMENTS SMART CARD SMART CARDS STAKEHOLDERS STANDARD MEASUREMENT SUPERMARKET SUPERVISION SUPERVISORY FRAMEWORK TARGETS TAX TELECOMMUNICATION TELECOMMUNICATIONS TELECOMMUNICATIONS INFRASTRUCTURE TERRORISM TERRORIST TRANSACTION TRANSACTION COSTS TRANSACTION VOLUME TRANSACTION VOLUMES USER USER EXPERIENCE USER INTERFACE USERS USES VALUE PAYMENT SYSTEM VERIFICATION VERIFICATIONS WIRELESS COMMUNICATIONS WITHDRAWAL WITHDRAWAL FACILITIES World Bank Malaysia : Sustainable Adoption of Innovative Channels for Financial Inclusion |
| geographic_facet |
East Asia and Pacific Malaysia |
| description |
This note focuses on the regulatory and
market environment relevant to the emergence and adoption of
innovative delivery channels to promote greater financial
inclusion in Malaysia. Financial inclusion is defined here
not only as providing access to financial services, but also
as enabling and promoting increased usage of those services.
Achieving higher levels of access and usage requires an
extensive and efficient retail payments infrastructure,
affordable financial products that meet the needs of
customers, and actions to address cultural and social
factors that influence customers' choices. This note
therefore considers the implications for financial inclusion
of Malaysia's evolving retail payments landscape and
the country's potential to go beyond providing physical
access to services. Malaysia has achieved remarkable
progress in providing access to basic bank accounts to the
majority of the population and credit to small and medium
enterprises. Increasing access and usage will depend, to a
large extent, on greater availability of technology-enabled
channels that go beyond brick-and-mortar branches and
leverage on existing third-party infrastructure such as
retailers and neighborhood shops, which are usually referred
to as 'retail agents.' There are only a few
regulatory obstacles for the use of agents by banks (there
is already an enabling framework for nonbanks) and for
development of other alternative delivery modes. Relevant
regulation is generally permissive while maintaining minimum
standards for the safety and security of transactions and
the protection of users. Financial inclusion is defined in
this Note as a situation where financial services are not
only readily accessible, but also widely used by the
majority of the population in meeting all or most of their
financial needs. After a brief overview of the state of
access to basic financial services and the institutional
potential for expansion in Malaysia, the note analyzes the
market environment and the policy and regulatory frameworks
that may have an impact on the emergence and sustainability
of delivery modes that could cater to underserved and
un-served communities. |
| format |
Economic & Sector Work :: Financial Sector Assessment Program (FSAP) |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Malaysia : Sustainable Adoption of Innovative Channels for Financial Inclusion |
| title_short |
Malaysia : Sustainable Adoption of Innovative Channels for Financial Inclusion |
| title_full |
Malaysia : Sustainable Adoption of Innovative Channels for Financial Inclusion |
| title_fullStr |
Malaysia : Sustainable Adoption of Innovative Channels for Financial Inclusion |
| title_full_unstemmed |
Malaysia : Sustainable Adoption of Innovative Channels for Financial Inclusion |
| title_sort |
malaysia : sustainable adoption of innovative channels for financial inclusion |
| publisher |
Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/01/18639521/malaysia-sustainable-adoption-innovative-channels-financial-inclusion-technical-note http://hdl.handle.net/10986/16729 |
| _version_ |
1764434544928227328 |
| spelling |
okr-10986-167292021-04-23T14:03:32Z Malaysia : Sustainable Adoption of Innovative Channels for Financial Inclusion World Bank ACCESS TO BANK ACCESS TO SERVICES ACCOUNT BALANCE ACCOUNT BALANCES ACCOUNT HOLDERS ACCOUNT NUMBER ACCOUNTING ALTERNATIVE PRODUCTS ANTI-MONEY LAUNDERING ATM AUTHENTICATION BANK ACCESS BANK ACCOUNT BANK ACCOUNTS BANK BRANCH BANK NEGARA MALAYSIA BANK SERVICES BANKING INDUSTRY BANKING SECTOR BANKING SERVICES BANKING SYSTEMS BANKS BARRIER BILL PAYMENTS BUSINESS ENVIRONMENT BUSINESS MODEL BUSINESS MODELS BUSINESS NEEDS BUSINESS OBJECTIVES BUSINESS SERVICES BUSINESSES CAPABILITY CAPITAL MARKETS CARD PURCHASES CASH PAYMENTS CASH TRANSACTIONS CASH WITHDRAWALS CASHLESS TRANSACTIONS CENTRAL BANK CHARGE CARDS CLIENT INFORMATION COMMERCIAL BANKS CONDUCT REQUIREMENTS CONSUMER LOANS CONSUMER PROTECTION CORPORATE CLIENTS COST SAVINGS CREDIT CARD CREDIT CARDS CRIMINAL PURPOSES CROSS SUBSIDIES DEBIT CARD DEBIT CARDS DEPOSIT DEPOSITS DETECTION SYSTEMS DIRECT DEBIT DISTRIBUTION CHANNELS DISTRIBUTION NETWORK DISTRIBUTION NETWORKS DOMESTIC BANKS DUE DILIGENCE E-BANKING E-COMMERCE E-MONEY E-MONEY SCHEMES E-PAYMENTS ELECTRONIC BANKING ELECTRONIC MONEY ELECTRONIC PAYMENT ELECTRONIC PAYMENTS ELECTRONIC TRANSACTIONS ELECTRONIC TRANSFER ELECTRONIC TRANSFER OF FUNDS ELECTRONIC TRANSFERS EMONEY ENCRYPTION EXISTING FINANCIAL SERVICES FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL PRODUCTS FINANCIAL SECTOR FINANCIAL SECTOR STABILITY FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL TRANSACTIONS FIXED COSTS FOREIGN BANKS FRAUD FRAUDS FUND TRANSFERS GOVERNANCE STANDARDS GOVERNMENT SUBSIDIES GROSS DOMESTIC PRODUCT HARDWARE ID ID NUMBER IDENTIFICATION IDENTIFICATION SYSTEMS IDENTITY FRAUD INCOME INCOME LEVELS INDEBTEDNESS INNOVATION INNOVATIONS INSTITUTION DEVELOPMENT INTERFACE INTERFACES INTERNAL CONTROLS INTERNATIONAL BANK INTERNET BANKING INTERNET USERS INTEROPERABILITY ISLAMIC BANKING ISLAMIC BANKS LAND DEVELOPMENT LARGE VALUE PAYMENT LEVEL PLAYING FIELD LIBERALIZATION LIVING STANDARD LOCAL BANKS MARKET ENVIRONMENT MARKET PARTICIPANTS MARKET PLAYERS MARKETING MASS MARKET MATERIAL MEDIUM ENTERPRISES MICROFINANCE MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MIDDLE-INCOME COUNTRIES MOBILE BANKING MOBILE NETWORK MOBILE PHONE MOBILE PHONES MONETARY FUND MONOPOLY MULTIMEDIA NATIONAL SAVINGS NETWORKS NEW ENTRANTS NEW PRODUCTS NONBANKS ONLINE SYSTEM OPEN ACCOUNTS OUTSOURCING PAYMENT CARD PAYMENT CARD TRANSACTIONS PAYMENT INSTRUMENT PAYMENT INSTRUMENTS PAYMENT NETWORK PAYMENT PRODUCTS PAYMENT SERVICE PAYMENT SERVICES PAYMENT SYSTEM PAYMENT SYSTEMS PAYMENT TRANSACTIONS PAYMENTS INFRASTRUCTURE PAYMENTS SYSTEM PAYMENTS SYSTEMS PHONE NUMBER PHYSICAL ACCESS POINT OF SALE POLICY FRAMEWORK POST OFFICE POST OFFICES PRICING PRACTICES PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRODUCT INNOVATION PROFITABILITY PROTOCOL PUBLIC BANK RAPID EXPANSION REAL TIME DEBIT REAL TIME GROSS SETTLEMENT REGULATOR REGULATORY ENVIRONMENT REGULATORY FRAMEWORK REGULATORY FRAMEWORKS RELIABILITY REMITTANCES RESULT RETAIL PAYMENT RETAIL PAYMENT SYSTEMS RETAIL PAYMENTS RISK MANAGEMENT RISK-MANAGEMENT RTGS SAVINGS SAVINGS BANK SECURITIES SECURITY FEATURES SERVICE PROVIDER SERVICE PROVIDERS SETTLEMENT SYSTEMS SITES SMALL PAYMENTS SMART CARD SMART CARDS STAKEHOLDERS STANDARD MEASUREMENT SUPERMARKET SUPERVISION SUPERVISORY FRAMEWORK TARGETS TAX TELECOMMUNICATION TELECOMMUNICATIONS TELECOMMUNICATIONS INFRASTRUCTURE TERRORISM TERRORIST TRANSACTION TRANSACTION COSTS TRANSACTION VOLUME TRANSACTION VOLUMES USER USER EXPERIENCE USER INTERFACE USERS USES VALUE PAYMENT SYSTEM VERIFICATION VERIFICATIONS WIRELESS COMMUNICATIONS WITHDRAWAL WITHDRAWAL FACILITIES This note focuses on the regulatory and market environment relevant to the emergence and adoption of innovative delivery channels to promote greater financial inclusion in Malaysia. Financial inclusion is defined here not only as providing access to financial services, but also as enabling and promoting increased usage of those services. Achieving higher levels of access and usage requires an extensive and efficient retail payments infrastructure, affordable financial products that meet the needs of customers, and actions to address cultural and social factors that influence customers' choices. This note therefore considers the implications for financial inclusion of Malaysia's evolving retail payments landscape and the country's potential to go beyond providing physical access to services. Malaysia has achieved remarkable progress in providing access to basic bank accounts to the majority of the population and credit to small and medium enterprises. Increasing access and usage will depend, to a large extent, on greater availability of technology-enabled channels that go beyond brick-and-mortar branches and leverage on existing third-party infrastructure such as retailers and neighborhood shops, which are usually referred to as 'retail agents.' There are only a few regulatory obstacles for the use of agents by banks (there is already an enabling framework for nonbanks) and for development of other alternative delivery modes. Relevant regulation is generally permissive while maintaining minimum standards for the safety and security of transactions and the protection of users. Financial inclusion is defined in this Note as a situation where financial services are not only readily accessible, but also widely used by the majority of the population in meeting all or most of their financial needs. After a brief overview of the state of access to basic financial services and the institutional potential for expansion in Malaysia, the note analyzes the market environment and the policy and regulatory frameworks that may have an impact on the emergence and sustainability of delivery modes that could cater to underserved and un-served communities. 2014-01-30T17:30:21Z 2014-01-30T17:30:21Z 2013 http://documents.worldbank.org/curated/en/2013/01/18639521/malaysia-sustainable-adoption-innovative-channels-financial-inclusion-technical-note http://hdl.handle.net/10986/16729 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Financial Sector Assessment Program (FSAP) Economic & Sector Work East Asia and Pacific Malaysia |