A well-implemented digital banking system will propel the economy

KUALA LUMPUR (November 26): A well-implemented digital banking system will propel the economy and encourage greater financial inclusion, according to a discussion at the World Islamic Economic Forum Foundation’s (WIEF) latest Powertalk webinar.

The webinar on Thursday, November 25 titled “Digital Banking: Driving Financial Inclusion for Micro, Small and Medium Enterprises (MSMEs)”, featured Professor Dr Nafis Alam, Head of Monash University School of Business, Director of financial and fintech risk management / Yeoh Xin Yi, leader in digital banking, and Alain Yee, director of ShopeePay Malaysia.

They discussed the constraints faced by MSMEs and the role of digital banking in overcoming these challenges.

Yeoh said digital banks have the potential to fill the void that exists in the economic environment, especially if the licensee already has an existing customer pool, made up of MSMEs, within an ecosystem. digital.

“The digital bank can leverage existing data and create advanced analytics to understand the profiles of specific segments, thereby better understanding the needs of MSMEs.

“Digital banks can also extend solutions beyond pure financial services, as MSMEs often need more than just financial support to grow,” she said.

Dr. Nafis said digital banking offers the prospect of extending financial services and facilities to such underserved groups such as MSMEs.

“It is not there to replace conventional financial institutions but to complement them,” he said.

Meanwhile, local MSMEs are able to pivot their online businesses by merging valuable information and data.

“Now, with the ecosystem they find themselves in, they can create improved and sustainable livelihoods for themselves and those around them as they evolve with access to fintech solutions,” Yee said. .

The panel pointed out that many e-commerce platforms also provide e-wallets as extensions, further accelerating financial inclusion.

According to them, this is an early indication that financial inclusion can indeed be achieved through the digital economy, with innovations such as e-commerce platforms, e-wallets and the strengthening of logistics infrastructure. .

Meanwhile, Yeoh shared the findings of KPMG Malaysia’s “Digital Banking Malaysia: The Inclusive Agenda” report, and said the unserved and underserved categories of B40 groups should be integrated into financial services platforms that can help with cash management, enable micro-savings or deposits, offer micro-insurance to protect their basic needs as well as basic financial products to help them out of their financial difficulties.

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