In light of this trend, many banks have already embraced technology into their businesses for lowering costs, increasing efficiency, and better serving their customers. However, technology has developed at a faster pace than the past. To remain competitive, banks will have to adopt new financial technology fast enough while making sure that the organizational structure, corporate culture, and business models are agile and adaptive. More importantly, large non-bank fintech players are becoming significant players in our financial landscape. Banks cannot afford to wait and see the landscape change before taking action. Every day, new business models are being developed. Technology adoption by banks is therefore unavoidable should they wish to stay ahead. As Ravi Menon, MAS Managing Director, recently said at the Singapore Fintech Festival, “In an industry facing the headwinds of lower economic growth and heavier regulatory burdens, innovation must be the way to refresh and re-energise the business model.” Fortunately, financial technology is being adopted in many ASEAN countries, notwithstanding their different stages of development. Singapore is testing a blockchain-based system for interbank payment to simplify the payments process and reduce costs. In Cambodia, Wing Money Transfer and Payment Services are popular among local people. In Thailand, the government and the Bank of Thailand, together with the banking industry, are committed to supporting the use of technology for greater efficiency and productivity in the financial sector and the economy as a whole. Early next year, Prompt Pay or the fast P2P payment system will be implemented.

Muhammad bin Ibrahim: Financial sector talent enrichment programme – syllabus enhancement Keynote address by Mr Muhammad bin Ibrahim, Deputy Governor of the Central Bank of Malaysia, at the launch of the “Financial Sector Talent Enrichment Programme (FSTEP) – Syllabus Enhancement”, Kuala Lumpur, 20 July 2010. *  *  *  I am delighted to be here this morning to officiate the launching of the Financial Sector Talent Enrichment Programme – Syllabus Enhancement which will be implemented for the next 5 batches until batch 10. Today marks a milestone for FSTEP as the programme has delivered more than 680 graduates to the industry and is now poised to deliver another 500 graduates under an enhanced syllabus. The development of human capital in the financial services industry is core in promoting a well-functioning and stable financial sector. Human capital development is critical in nation building as a whole. At Bank Negara Malaysia, for many years, we have embarked on strategies to strengthen human capital development in the financial services sector. Various institutional platforms were established such as INCEIF, the International Centre for Education in Islamic Finance; ICLIF, the International Centre for Leadership in Finance; AIF, the Asian Institute of Finance; and of course, FSTEP, which is entrusted with equipping talents with the right skills and knowledge for their smooth transition into the financial services industry in Malaysia. It is such initiatives that would put the necessary foundation to promote Malaysia as a centre of learning for financial services this region.