BNM eyes 20pc e-remittance users
Published on: Sunday, March 24, 2019
By: Mardinah Jikur
SANDAKAN: Bank Negara Malaysia (BNM) aims to increase the number of e-remittance users to at least 20 per cent. BNM Money Services Business Regulation Director Nik Mohamed Din Nik Musa said currently, the number of e-remittance users stood at 11 per cent.
“Project Greenback has achieved many positive results in Sabah,” he said at the Project Greenback 2.0 Kota Kinabalu (GBKK) anniversary and appreciation dinner, here, Thursday.
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“We have recorded more than 2,500 new registration for remittance via e-channels through the 10 activities undertaken thus far.”
E-remittance and over-the-counter remittance turnover in Sabah registered an encouraging growth of 48 per cent and 105 per cent from March-December 2017 to March-December 2018, respectively.
GBKK or “Jom Kirim” aimed to inculcate trust and influence the behaviour of migrants towards the use of technology in financial services.
“Technology offers greater convenience to users and reduces cost in the long run.
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“I would like to thank MAMSB and the participating RSPs for supporting this initiative and look forward to more RSPs joining this promotional campaign,” he said.
BNM, he said, was also grateful for the support and commitment from its project partners.
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“Looking at the successes of the Project Greenback in Johor Baru and Kota Kinabalu so far, I believe it can become an exemplary model of a public-private partnership, with many parties wanting to learn from this project.
“We count on your continued vision, ideas and practical contributions to take us through the next leg of our journey, and we look forward to your continuous support in 2019 and 2020.”
Earlier, Nik noted that the average remittance cost in Sabah has gone down significantly since the project kick-off, which has remained below three per cent for the past year.
This is encouraging as the United Nations has targeted for reduction in the average remittance cost to three per cent by 2030 in its Sustainable Development Goals (SDGs).
On the same development, Nik said, 2018 has been a good year for BNM with significant growth noted in the remittance sector.
“The outward remittance turnover recorded a double-digit growth at over 12 per cent last year, a feat last achieved back in 2015.
“This was driven by higher remittances via mobile channels which increased by more than 50 per cent from previous year.”
Meanwhile, he said the e-KYC platform which was introduced in November 2017 was gaining traction.
“As of now, five players have been given approval to roll out their e-KYC platform.
“We are in the midst of assessing another eight e-KYC applications, with the intention of approving these very soon,” he said.
This year, the World Bank, in collaboration with BNM, will commission a survey to understand the financial and remittance behaviour and needs of migrant communities in Sabah.
The study will assist in the development of future policy direction as well as future product offerings that can fulfil the needs of the community.
Based on the interest generated in other countries on Project Greenback 2.0, the Bank will also document the experience of implementing Project Greenback in Malaysia in the survey report.
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