As consumers become more aware of the financial product characteristics and the choices of financial providers, they will be in a better position to demand for a broader range for products and services customized to their requirements, at more competitive prices and through more convenient channels. This will contribute to the development of the financial sector as it will prompt increased innovation in response to these demands. Indeed, product life cycles can be expected to shorten in the retail financial services. For example, checking accounts are being fast being replaced by cash management accounts. Well informed and discerning consumers are a powerful force in shaping and driving the market. Banking institutions will thus have to continually innovate in order to meet consumers' preferences and expectations. Consumers' demand will thus be able to drive business competitiveness, spur greater innovation and challenge banking institutions to strengthen their competitive advantage. Educated consumers are without doubt, a powerful force to drive performance improvements in banking institutions to attain the desired efficiency and effectiveness in a market driven environment. Financially savvy consumers will demand greater clarity and transparency in the way banking products and services are provided to customers. Communication policies by banking institutions therefore needs to ensure clear and effective communication of key information to customers, especially with regard to the more complex products. Indeed, increasingly knowledgeable customers would not only allow for good financial decisions, but there would also be pressure for banking personnel to not only enhance their own knowledge but also their customer service orientation.

The programme hopes to develop banking customers who will make better informed financial decisions and be confident in exercising their rights. To facilitate recognition of the programme by the public, the consumer education programme has been given an identity and logo of its own. The programme is known as "BankingInfo" and will be implemented in phases and in a structured and incremental manner. Each phase of "Bankinginfo" will reach out to certain target groups to ultimately achieve its long-term goal of reaching out to all segments of the banking population. Consumers are not homogenous and the information to be transmitted will have to take into account the different needs and preferences. The level of awareness of this programme will be monitored with a view of improving the content and enhancing the mode of dissemination and communication of the information. In this first phase of the programme, the information will be disseminated to the public in the form of 12 information booklets and via the BankingInfo web-site. The areas covered include information on consumer banking products, information on new and innovative banking channels as well as educational information on aspects of banking and currency. It also includes information on Islamic banking, the Credit Bureau and the Malaysian currency and on Bank Negara Malaysia. All these booklets can be obtained from branches of the commercial banks and finance companies and can be accessed from the BankingInfo website. Ladies and Gentlemen, Today is just the first step forward in the consumer education programme.