KUALA LUMPUR, March 29 — Low awareness and trust, confidence, and still-limited digital financial literacy remain as barriers to some segments of society to adopt and reap the benefits of digital financial services (DFS), said Bank Negara Malaysia (BNM).
The central bank, in its Annual Report 2022 released today, said this underscores the importance of financial literacy as an important life skill that equips consumers with the knowledge and resources to navigate day-to-day financial activities effectively, responsibly, and confidently.
“Enhanced financial literacy, including digital financial literacy, ultimately empowers consumers to take better advantage of DFS in managing their day-to-day finances, leading to better lifestyle choices and well-being,” it said.
According to BNM, the recent Financial Capability and Inclusion Demand Side Survey 2021(FCI Survey 2021) conducted by the bank estimated that 74 per cent of Malaysians use DFS.
It noted that similar observations by the World Bank’s Global Findex Survey 2021 showed that 79 per cent of Malaysian adults use digital payments, of which 42 per cent did so for the first time during the pandemic.
“With significant growth in the number of financial apps and tools, consumers need to be digitally and financially astute to identify suitable digital products and services and use them wisely, including for investment purposes,” BNM added.
The central bank noted that despite the more pervasive use of DFS, the recent FCI Survey 2021 findings showed that the level of digital financial literacy among Malaysians is still low.
“This gap would increase the risks of consumers falling prey to online fraud such as phishing, hacking attacks, unauthorised use of data, and being used as ‘mule accounts’.
“Reported cases of victims falling prey to financial fraud and scams point to the compromise of personal information as the dominant risk factor.
“Taking steps to learn and build good cybersecurity habits to protect personal information, especially when using any digital platform to manage finances, can therefore go a long way to help reduce the chances of becoming a scam victim,” said BNM.
— Bernama
