Malaysia, UN Capital Development Fund launch digital finance innovation hub and inclusive fintech accelerator

Today, the United Nations Capital Development Fund (UNCDF), Bank Negara Malaysia (BNM), and Malaysia Digital Economy Corporation (MDEC) launched the Digital Finance Innovation Hub to further support the financial inclusion of Malaysia’s middle and low-income.

The objective of the Digital Finance Innovation Hub is to enable service providers, including financial institutions and fintech start-ups, to use technology in promoting inclusive finance, including through the introduction of products and services that meet the needs of the underserved in Malaysia. The hub also seeks to build a community of innovative and resourceful developers and collectively work towards Malaysia’s financial inclusion goals.

Whilst it has attained one of the highest levels of financial inclusion among countries in the region, Malaysia is keen to further raise the bar in developing an inclusive and progressive financial system. To this end, Malaysia views digital innovation as an important enabler to not only reach out to the remaining underserved population, but also to achieve overall greater impact and higher economic efficiency in financial intermediation, in terms of cost reductions, greater choice, faster provision of financial services as well as effective utilisation.

The Innovation Hub will draw upon Malaysia’s experience in advancing financial inclusion, infused with UNCDF’s innovative approaches from its programmes in other countries. Participating service providers would be able to build-upon the cross-fertilisation of ideas and market research generated via the hub to expand their services to meet the needs of the underserved in Malaysia and beyond.

The UNCDF has also partnered with BNM and MDEC to launch the Inclusive Fintech Accelerator Program, a program aimed at solving specific financial inclusion pain points in Malaysia, surrounding four key areas which are spending, saving, borrowing and financial planning. The Inclusive Fintech Accelerator Program will be the first of a series of accelerator programs to be organised jointly by UNCDF, BNM and MDEC. Fintech start-ups were invited to share their interest to participate in the upcoming accelerator programs and other activities to be organised via the hub.

By fostering collaboration across the public and private sector and between established institutions and new entrants, the UNCDF Digital Finance Innovation Hub is expected to contribute to positioning Malaysia as a test-bed for fintech solutions, whilst strengthening its position as a financial inclusion leader.

The Digital Finance Innovation Hub and Inclusive Fintech Accelerator Programme is supported by Metlife Foundation, and is part of the i3 Programme to promote digital financial inclusion in Malaysia, China, Bangladesh and Vietnam.

About UNCDF

The UN Capital Development Fund (UNCDF) makes public and private finance work for the poor in the world’s 47 least developed countries. With its capital mandate and instruments, UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development. By identifying market segments where innovative financing models can have transformational impact in helping to reach the last mile and address exclusion and inequalities of access, UNCDF contributes to a number of different SDGs.

About Bank Negara Malaysia

Bank Negara Malaysia (the Central Bank of Malaysia), is a statutory body mandated to promote monetary and financial stability aimed at providing a conducive environment for the sustainable growth of the Malaysian economy. The Central Bank’s functions include supervising the financial institutions and overseeing the nation’s payment systems infrastructure.

About Malaysia Digital Economy Corporation (MDEC)

Malaysia Digital Economy Corporation or MDEC (formerly known as Multimedia Development Corporation Sdn. Bhd.) is the lead agency in driving the digital economy in Malaysia under the Ministry of Communications and Multimedia Malaysia. Since its inception 22 years ago, MDEC’s mission is to develop the nation’s digital economy. MDEC’s implementation efforts are centred on driving investments, building local tech champions, catalysing digital innovation ecosystems and propagating digital inclusivity.

MDEC is also responsible in ensuring that Malaysia plays an integral part in developing and nurturing talent to drive digital innovation around the world, while attracting participation from global ICT companies to invest and develop cutting edge digital and creative solutions in the country.

Source: SalaamGateWay