The Central Bank of Malaysia (BNM or Bank Negara Malaysia) has recently approved two new participants within its financial technology regulatory sandbox. This development is in line with the central bank’s focus on fintech in Malaysia.
The two new participants who are testing their products from 20 October 2017 are Jirnexu and CIMB and Paycasso.
Jirnexu’s fintech solution is driven by XpressApply, a data-driven platform that enables financial institutions such as banks and insurance companies to access online and mobile consumers. Jirnexu also owns and operates financial comparison sites, such as RinggitPlus in Malaysia and KreditGoGo in Indonesia.
While Jirnexu and the four previously approved sandbox players are primarily in the financial aggregators and remittance space, CIMB Bank and Paycasso’s global customer identification platform comes timely with BNM’s recent issue of the regulatory parameters for the conduct of electronic-Know Your Customer (e-KYC) processes. See our previous alert on the introduction of e-KYC in Malaysia.
The addition of the two new participants within the sandbox signals a continued and committed interest in the fintech space. It illustrates BNM’s progressive regulation of new product and service offerings. It is expected that BNM will draw from CIMB and Paycasso’s experience in the sandbox in its approach to formulating new guidelines on e-KYC for participants other than the money services business.