Bank Negara Malaysia (BNM) sees scope for MyDigital ID and other data-sharing schemes to support Malaysia’s Open Finance rollout, according to recent media reports, citing a spokesperson for the central bank.
The key requirement will be customer consent. According to the spokesperson, personal financial information cannot be shared, accessed or used unless the customer has first given permission.
She was responding to a question on whether MyDigital ID data could be connected to Open Finance.
While such a link may be possible, the central bank stressed that consent would remain central to any data-sharing arrangement.
BNM plans to introduce Open Finance in phases from next year.
The framework is being developed to give customers a safer way to share financial data with approved providers.
It is also expected to reduce reliance on manual and scattered data-sharing methods, including repeated document submissions across different providers.
BNM is working with Payments Network Malaysia Sdn Bhd (PayNet) and the financial industry to develop the infrastructure and test use cases for Open Finance.
PayNet is Malaysia’s national digital payment infrastructure operator. BNM holds a 35.5% stake in the company.
Early Use Cases Focus on Financial Management and Document Sharing
Initial use cases include personal financial management, where individuals can consolidate information from multiple accounts and get a clearer view of their finances.
Another use case is API-based document submission, which could simplify account opening by allowing documents to be sent securely through digital channels.
Open Finance could also help micro, small and medium enterprises access financing.
With customer consent, lenders may be able to assess businesses using broader data such as cash flow and transaction records.
The spokesperson added that the framework could reduce friction in financial processes and make digital services easier to use.
Featured image: Edited by Fintech News Malaysia, based on image by BNM
