Malaysia is laying the groundwork for Open Finance as Bank Negara Malaysia (BNM) advances a phased, whole-of-system rollout built around consumer control. The goal is to let people decide what information they share, for what purpose, with whom, and for how long. In practice, this is meant to replace clunky habits like emailing PDFs or even sending physical documents by courier. Instead, consumers will be able to instruct their bank to transmit data directly to another institution. The initiative is positioned as part of Malaysia’s broader digitalisation agenda, with industry leaders framing it as a strategic enabler for secure, inclusive, and innovation-driven financial services.
A key building block is the platform being developed by Payments Network Malaysia (PayNet). PayNet’s role is to provide encrypted, consent-based data flows between financial institutions and approved third-party providers, while not storing or viewing customer information. As PayNet’s Group CEO Farhan Ahmad described it, the system is the “middle layer” that transports information safely from point A to point B. Technical development has been supported by seven banks and the Employees Provident Fund (EPF). With a pilot already in motion, implementation has been targeted as early as mid-2026, aligning with BNM’s priorities under the Financial Sector Blueprint 2022-2026.
What Changes for Banks: From Data Custodians to Data Competitors
For banks, Malaysia open finance changes the competitive baseline because consented data becomes more portable across providers. Industry commentary notes that an institution long focused on being the custodian of its own customer data also becomes a consumer of everyone else’s, starting with larger institutions before extending across the wider market. This portability can support a consolidated view of the customer, while also making switching easier and lowering the cost of leaving. That makes customer activation critical: banks will need to persuade customers to opt in, then deliver real value afterward through better experiences and more tailored services, not just compliance.
BNM has also been moving the regulatory structure forward. An exposure draft was expected in the second half of 2025 to set participation criteria, mandated datasets, and expectations for consent management and customer protection. Separately, BNM’s Exposure Draft released on 18 November 2025 defined Open Finance as permissioned sharing of customer information between a data provider and a data consumer in a secure, open, accessible, interoperable, and timely manner. Data sharing remains subject to the Personal Data Protection Act (PDPA) and other relevant laws, including the Financial Services Act, the Islamic Financial Services Act, and the Development Financial Institutions Act.
For consumers, the benefits start with simpler, safer journeys. Early use cases include personal financial management, where people can consolidate information from multiple accounts for a clearer view of their finances. Another practical use case is API-based document submission, designed to simplify account opening by sending documents securely through digital channels. The framework is also framed as an inclusion lever. With access to alternative data such as transaction history, providers may build better credit models for underserved groups, including gig workers, freelancers, and micro-entrepreneurs. Consumers also retain the right to revoke consent at any time, and the framework is built to strengthen trust through clearer consent rules and stronger safeguards.
What is Open Finance in Malaysia meant to achieve?
When could implementation start, and who is involved in the build?
How does the framework protect customer data?
How could Malaysia’s open finance approach affect access to credit?
What should banks focus on once consent-based data sharing begins?
