zeti akhtar aziz : the financial well - being journey – building on the momentum and identifying new paths opening address by dr zeti akhtar aziz, governor of the central bank of malaysia ( bank negara malaysia ), at the malaysia - oecd high - level global symposium on financial well - being, kuala lumpur, 30 september 2015. * * * it is my great pleasure to be here at this global symposium on financial well - being, an important area of priority in the current world economic environment. bank negara malaysia is most pleased to host this important event in collaboration with the oecd. let me extend a very warm welcome to all delegates to kuala lumpur and to our facilities here at sasana kijang. the advancements in the provision of financial services in these recent few decades have had a transformational impact on financial well - being. key features of this transformation have been the greater diversification of financial systems and the increased leverage on the advancements in technology. today, a growing share of financial intermediation is supported by a wider range of financial products and services that are not only being offered by banks but also by capital markets and non - bank financial intermediaries that are now assuming a larger role in the financial system and the economy. this has contributed to greater flexibility in managing financial risks and it has expanded the avenues for businesses and households to meet their financial needs and goals. advancements in technology have also improved access to financial services to be undertaken more effectively. it has also contributed to lower costs of financial services. additionally it has supported the development of a broad range of financial services, including advisory and product aggregation services that allow for more informed financial decisions. ongoing regulatory and supervisory reforms, particularly in this recent decade, have further reinforced the potential benefits of financial development – by improving the resilience of financial systems to disruptions and reducing the harm it could have to consumers that may arise from market failure and financial crisis. for the benefits of financial development to be fully realised, it needs to be complemented with the effective use of the financial system by consumers and businesses. with economic progress, individuals need to assume greater responsibility for financing their lifetime financial needs that may include education, healthcare and retirement. in addition, easier access to credit has also increased the risk of households falling under the crippling weight of excessive debt burdens, while the challenges associated with operating in a more complex financial system have also increased the vulnerability to inappropriate financial risk taking and

to financial fraud. indeed, the identification of vulnerable groups is no longer confined to the poorest segments of society as defined by poverty threshold levels, but it also includes young adults, households living in urban centres, those in temporary unemployment, and the older segments of the population. the focus on strengthening the ability of consumers and businesses to effectively use the financial services must therefore be an important part of any effort to improve financial wellbeing. this would involve enhancing the ability of users of financial services to make discerning financial choices that best suit their needs, while increasing their confidence to take advantage of the new spectrum of channels and tools for financial management. this would result in better financial planning and more stable consumption patterns as well as the ability of individuals to better withstand the macroeconomic shocks that are now occurring more frequently in the global economic environment. increased financial capability would also contribute towards evolving more inclusive financial systems and the broader financial stability. there is greater expectations on the potential for bis central bankers ’ speeches financial education to deliver improvements in responsible financial behaviour ; encourage stronger market discipline and lift the poorest segments of society out of poverty in addition to helping communities adjust to the changing economic and financial conditions. the achievement of these outcomes will increasingly hinge on consumers of financial services being financially competent. over the years, important progress has been made to provide the foundations on which enhanced financial capability can be built. these foundations include : ( i ) greater provision of truthful disclosures on financial products and services ; ( ii ) expanded financial knowledge ; ( iii ) an environment which is supportive of consumer choice, including the ability for consumers to exercise their preferences without impediments ; and ( iv ) effective redress mechanisms. policy makers, the private sector and market participants have a key role in building these foundations. in the area of disclosures alone, there has been extensive improvements in the quality and consistency of disclosures, making it easier to understand through the use of plain language, and adopting the various approaches to bring important disclosures to the attention of consumers. for many regulators, the use of disclosures has been particularly useful to promote positive consumer outcomes, without creating distortions that could result from more intrusive policy interventions. on enhancing further financial knowledge, more than 50 countries have accorded priority to this agenda and have implemented or designed national financial education strategies. this will gain further traction with the publication of the oecd high level principles on national strategies for financial education in 2012. it will be further reinforced