Intensify financial inclusion efforts, urges Zeti

Both the private and public sectors need to intensify efforts to accelerate meaningful and effective efforts in the drive for greater financial inclusion, said Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz.

Zeti said while there has been significant progress in advancing financial inclusion across the world, many are still unbanked.

"According to the Global Findex, 700 million adults have gained access to formal financial services since 2011. This is indeed a significant achievement.

“Yet two billion adults today are still unbanked," she said in her official address at at the launch of the Global Financial Inclusion (Global Findex) database 2014 report and conference here Thursday.

The Global Findex database, launched by the World Bank in 2011, provides comparable indicators showing how individuals in 143 countries save, borrow, make payments, and manage risk.

Zeti said for ASEAN, financial inclusion is an increasing priority because an estimated 260 million adults in the region still do not have access to the formal financial system, while 45 million small businesses have difficulties in accessing financing.

To overcome this challenge, she said, ASEAN Finance Ministers and Central Bank Governors in March 2015 decided to elevate financial inclusion to a higher policy priority.

"It is our shared vision that every person and every small business in the region can participate and benefit from the opportunities that will be brought forth by greater regional integration under the ASEAN Economic Community," she said.

Zeti also highlighted the importance of financial inclusion to the country, pointing out its central role in supporting aspirations towards balanced and sustainable growth of our economy.

"The priorities in Malaysia are to enhance greater access to digital financial services, as well as to enable the under served to benefit from increased convenience, greater efficiency and lower cost.

"Another important priority would be financial education for the newly banked, to ensure that new entrants into the financial system behave responsibly and do not suffer the unintended consequences of being over-indebted," she said.