Financial regulator BNM prepares for the launch of Open Finance, a new initiative that empowers consumers to manage and control their own data.
In the second half of 2025, Malaysia is set to unveil an exposure draft for its Open Finance initiative. This ambitious project, part of the country's broader digitalisation agenda, is being guided by Bank Negara Malaysia (BNM) through a phased, whole-of-system approach.
The Open Finance initiative aims to give consumers greater control over their financial data, with clearer consent frameworks, stronger data safeguards, and compliance with privacy laws such as the Personal Data Protection Act, the Financial Services Act, the Islamic Financial Services Act, and the Development Financial Institutions Act.
Payments Network Malaysia (PayNet) is at the forefront of this transformation, developing a platform for encrypted, consent-based data flows between financial institutions and third-party providers. Notably, this platform does not store or view customer information, ensuring privacy and security.
Dato' Sri Khairussaleh Ramli, President and Group CEO of Malayan Banking Berhad, has highlighted the underserved segment as one of the key beneficiaries of Open Finance. He believes it could support better credit models for groups like gig workers and micro-entrepreneurs, improving financial inclusion.
Industry leaders share this optimism, with Farhan Ahmad, Group CEO of PayNet, stating that Open Finance unlocks a significant amount of value and mitigates the risk of data sharing. He adds that the platform enables safe and secure transportation of information.
The technical development of Open Finance in Malaysia is being led by PayNet, with support from seven banks and the Employees Provident Fund (EPF). The organisation leading this technical development is Incore Innovation, which works with global partners such as Sensedia and is actively involved in the Malaysia Open Banking Summit.
BNM is providing regulatory clarity for the Open Finance initiative, aiming to end outdated practices like emailing PDFs or sending physical documents. Consumers will be able to instruct their bank to transmit data directly to another institution, improving security, traceability, and convenience.
Open Finance also allows consumers to decide what financial information they share, with whom, and for how long. This empowerment could strengthen consumer trust and foster innovation in the financial sector.
The implementation of Open Finance is targeted as early as mid-2026. With its strategic enabler status, BNM is confident that this initiative will drive secure, inclusive, and innovation-driven financial services in Malaysia.
[Image: An edited image of a digital landscape representing the Open Finance initiative]
This article is not an advertisement but a news piece reporting on the developments in Malaysia's Open Finance initiative.
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