Problem Statement FinTech In Malaysia

For Malaysia's financial sector, the rapid development of financial technology (FinTech) has
brought both benefits and difficulties. FinTech confronts a number of important obstacles in
the Malaysian setting, despite its promise to increase financial inclusiveness, efficiency, and
innovation. The following can be used to frame the issue statement for fintech in Malaysia:

1. Limited Financial Inclusion:

A sizable section of Malaysia's population is still underserved or excluded from formal

financial services, despite the development of FinTech. The issue is a lack of accessible
and user-friendly FinTech solutions, particularly for people in rural areas and those with
low incomes. The digital divide must be closed, and FinTech services must be available to
and helpful to all facets of society.

2. Regulatory Framework and Compliance:

Regulators face difficulties in adjusting to FinTech's dynamic nature and establishing a

supportive regulatory framework. It takes effective regulatory frameworks that can keep
up with technology changes while ensuring stability and security to balance innovation
and consumer protection. The challenge is creating thorough rules that promote
innovation, safeguard consumers, and reduce dangers related to FinTech activity.

3. Cybersecurity and Data Privacy:

FinTech heavily relies on digital infrastructure, as well as the gathering and processing of
enormous volumes of private and sensitive financial data. To protect against cyber
attacks, data breaches, and identity theft, the issue is maintaining effective cybersecurity
safeguards and strict data privacy rules. For widespread adoption and long-term growth,
FinTech services must build trust and confidence.

4. Collaboration and Industry Integration:

A wide range of parties are involved in fintech, including regulators, entrepreneurs, and
established financial institutions. The challenge is in encouraging cooperation and
developing an environment where many players may operate together. For the purpose of
fostering innovation and providing comprehensive financial services, it is essential that
traditional financial institutions and FinTech businesses collaborate, share knowledge,
and work together.