mohd adhari belal din : cybersecurity – safeguarding the future for innovative financial inclusion remarks by mr mohd adhari belal din, assistant governor of the central bank of malaysia ( bank negara malaysia ), at the " cybersecurity : safeguarding the future for innovative financial inclusion ", kuala lumpur, 1 august 2017. * * * it is my privilege to welcome you to this landmark event – a very important policy forum for policymakers and regulators to discuss on the significance of cybersecurity in safeguarding the future for innovative financial inclusion. intersection of financial inclusion and cybersecurity as digital financial services expands in reach, scope and scale, cybersecurity matters a great deal for policymakers and regulators with financial inclusion mandates. the fast - changing digital landscape has brought the financially excluded and underserved populations into the formal financial system, bringing about a positive impact on economic growth and stability. however the rapid paced innovation of digital financial services also opens up opportunities and incentives for cyber - attacks, which challenges the fundamental principles of information risk and cybersecurity management. leaders must understand the risks associated with digital innovation, and balance the imperative to protect their organisations and consumers with the need to adopt innovative technology approaches. the likelihood for cyber - attacks and fraud is exacerbated by those who are inexperienced with formal financial services and unfamiliar with consumer rights. low financial and technology literacy amongst consumers could translate to greater vulnerabilities and exposures. more worryingly, we have seen major cyberattacks occurring globally which caused disruptions to essential financial services and destroy savings or financial assets that the underbanked depend on. financial institutions are not only prime targets for cyberattacks but bear tremendous fiduciary and legal, regulatory, and compliance responsibility to protect customer data and privacy. safeguarding trust in the formal financial system is now particularly important for the newly included grassroots. in financial services, the push for digital innovation, disruptive technologies, delivery of more personalized customer experiences, and seamless access to consumers for more inclusion continuously introduces new threats. forrester research calls this dynamic an “ epic ” battle between privacy and digital innovation, and predicted that by 2020 financial services and insurance companies expect to generate the biggest portion of their total sales from digital products, services, or items sold online. alongside this drive toward digital business, many organisations rely on legacy it systems that are expensive to maintain and susceptible to more vulnerabilities,

with one brief exception, according to the congressional budget office. over the recovery, it has averaged only 1 - 1 / 4 percent. one contributor to this decline has been a reduction in the labor force participation rate due to population aging. another has been a for an estimate of the role of u. s. monetary policy in offsetting the recent tightening in financial conditions, see del negro, giannoni, and smith ( 2016 ). see, for example, laubach and williams ( 2015 ) ; the estimates from the dynamic stochastic general equilibrium models cited in yellen ( 2015 ) ; the median estimated neutral rate from the federal reserve bank of new york ’ s most recent survey of market participants ( federal reserve bank of new york, 2016 ) ; and johannsen and mertens ( 2016 ). bis central bankers ’ speeches marked slowing in productivity growth. over the six years from the end of 2009 to the end of 2015, productivity grew only a little over 1 / 2 percent per year, compared with average growth of 2 - 1 / 4 percent over the 50 years prior to the great recession. 8 the reasons for such a dramatic slowing in productivity growth are not clear. possible explanations include the fading of a one - time boost to productivity from information technology in the late 1990s and early 2000s ; the reduced movement of resources from the least productive to the most productive firms, including new businesses, perhaps due to greater financial constraints for new and small businesses ; and a delay between the introduction of new technologies, such as robotics, genetic sequencing, and artificial intelligence, and their effect on new production processes and products. 9 to conclude, recent economic developments have been mixed, and important downside risks remain. in this environment, prudent risk management implies there is a benefit to waiting for additional data to provide confidence that domestic activity has rebounded strongly and reassurance that near - term international events will not derail progress toward our goals. in addition, because the depressed level of the neutral rate of interest reflects forces that are likely to persist, the appropriate path of policy is likely to remain shallow for several years. references baily, martin neil, james manyika, and shalabh gupta ( 2013 ). “ u. s. productivity growth : an optimistic perspective, ” international productivity monitor, no. 25, pp. 3 – 12. byrne, david m., john g. fernald, and marshall b. reinsdorf ( 2016 ). “ does the united states have a