KUALA LUMPUR: Capital market players must identify, understand and appropriately mitigate potential risks in the market pertaining to cyber security, investor protection and market integrity.
Securities Commission (SC) Malaysia chairman Datuk Ranjit Ajit Singh said for the market to fully serve its economic role, it must not only be safe but also be purposeful and accessible to the millions of consumers and businesses.
He said naturally occurring market failures such as information asymmetry and monopolies resulted in pockets of underserved users of the financial system, which dampens the dynamism of the overall economy.
“A potential solution to this issue may lie in technology, which is transforming the capabilities of financial markets and disrupting the traditional value chain of businesses with breathtaking speed.
“By improving the customer service experience while broadening access and reducing costs, technology may potentially result in significantly? more efficient and inclusive markets,” he said in his opening speech at the World Capital Markets Symposium here, yesterday.
He said the growing financial technology or fintech currently has its significant potential to disrupt the business model of incumbents and appeal to a wider audience by promising user-friendly services that transcend demographic, geographical and infrastructure barriers.
The two-day symposium was? also attended by the Prime Minister Datuk Seri Najib Tun Razak.
During his keynote address, Najib announced the establishment of the Alliance of FINtech Community, or aFINity@SC, which aims to connect fintech entrepreneurs with investors, researchers, mentors and relevant government agencies.
The aFINity@SC is put under the SC as the driver in spearheading the ?initiative.
Ranjit said it was essential for policymakers and the private sector to work together in nurturing the market to ensure that the anticipated growth in fintech became a reality.
“As a regulator, I strongly ?believe that we could play a facilitative role in a number of ways to provide the much-needed financing for fintech entrepreneurs,” he added. — Bernama