PETALING JAYA: Bank Negara has set up a Financial Technology Enabler Group (FTEG), headed by a senior central banker, as it strengthens support for disruptive innovations in the industry.
The group, Bank Negara said in a statement yesterday, would formulate and enhance regulatory policies to facilitate the adoption of technological innovations in the Malaysian financial services sector.
FTEG is part of the bankâ€™s commitment to support innovations that would improve the quality, efficiency and accessibility of financial services in Malaysia.
FTEG is a cross functional group led by Aznan Abdul Aziz, who is the director of Bank Negaraâ€™s financial sector development department.
Bank Negara said FTEG would also serve as the bankâ€™s dedicated contact point for financial technology (fintech)-related queries, including on regulatory matters related to the adoption of fintech in the financial services industry.
Fintech is an economic industry composed of companies that use technology to make financial services more efficient.
Bank Negara governor Datuk Muhammad Ibrahim had said that the bank would roll out the fintech framework by July. This would allow banking institutions to have time to give Bank Negara feedback to ensure that it would be implemented effectively, he said.
At the World Economic Forum Asean 2016 in Kuala Lumpur on Wednesday, CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak commended Bank Negara for its plan to launch a regulatory framework to address concerns over fintech.
â€œWe want to welcome disruptive technology, but we donâ€™t want to welcome destructive competition and technology,â€ he said.