KUALA LUMPUR: The Association of Banks in Malaysia (ABM) has reaffirmed its commitment to promoting financial inclusivity to ensure that all segments of the population have access to essential financial services.
ABM executive director Dr. Amina Josetta Kayani said underserved markets such as stateless individuals and non-citizen spouses, are those that do not receive basic financial products and services.
Product services are continuously being developed to ensure improved access to banking for underserved and unbanked communities, she added.
"ABM works very closely with the banks to ensure adherence to ethical and transparent practices. With digitalisation, we also ensure that the banks are advancing with digital transformation," she told Business Times in an interview.
While the banks continue to drive modernisation, Amina emphasised the importance of including consumers who are not advancing quickly enough, causing them to be left behind in terms of accessibility, literacy, and security.
To enhance financial inclusion, she said ABM engages in active collaborations with key stakeholders to foster partnerships aimed at advancing sustainability and inclusivity, creating initiatives that promote long-term environmental, social, and economic well-being.
ABM has worked directly with banks, individuals in need and various partners such as the Financial Industry Collective Outreach (Finco) and educational institutions, to further promote inclusivity.
"ABM, through Finco, runs educational programs while also collaborating with universities and other educational institutions on their modules for vulnerable communities.
"Since I joined ABM, I have had four engagements (with Bank Negara Malaysia) specifically focused on vulnerable communities, including persons with disabilities, social enterprises, stateless children, and non-citizen spouses," she said.
Amina explained that each bank has its own standard operating procedures and guidelines and ABM is working with the banking industry to ensure that underserved markets receive the minimum access they need.
As the industry must comply with Bank Negara Malaysia's guidelines, she stated that the central bank is also a strong advocate for providing accessibility to underserved groups.
While some banks are highly proactive in preparing accessible facilities for people with disabilities, she believes there is room for others to enhance their efforts to create more inclusive environments.
For non-citizen spouses and stateless children, she said the banks have worked around the guidelines to implement necessary measures.
"Bank Negara is very cognisant of these underserved and vulnerable groups, but they can't simply lift the entire set of guidelines to make everything free and easy. That's when controls become lax and problems arise.
"Bank Negara has had a dialogue with us and the banks to figure out how to manage the different categories of people who are left out and to establish minimum requirements," Amina added.