Page 169 - Special Topic Session (STS) - Volume 1

STS 422 Zarina A.R
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accounts and life insurance/takaful policies . There appears to be no
significant difference in ethnicity and gender for those that are in the financial
system. Product holding is lowest amongst those in the rural areas and
household income less than RM3,000 per month. The vast majority of the
account owners owns the deposit account where 9 in 10 of the Malaysians will
have at least a saving account. Owning an account is an important first step to
financial inclusion. According the the Global Findex Database 2017, in order to
fully benefit having an account, people need to be able to use it in a safe and
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convenient ways .
In 2018, the user base for both mobile and internet banking have grown
since 2015. The usage of internet banking has increased at a much faster pace
compared to mobile banking. Digital usage is also seen more obvious in the
market centres and amongst those in the T20 segment, with a monthly income
level of above RM7,000 per month. The usage of the newly added digital
services, i.e. payment card and mobile payment is high even though they were
only recently introduced to the market. Similar to mobile and internet banking,
the user base of these newly added services are more commonly used by the
male segment as well as those in the younger age bracket i.e. between the age
of 20-44 years old. The common reasons mentioned by those using digital
banking services are for the usage of digital services is for the purpose of
money transfer and bill payment.
The proportion of the unbanked is 8%, maintained since 2015. These
segment do not hold any financial products and services. The unbanked
segment is highest amongst those between the age of 15-19 years old. The
reason for not having a bank account when they were below 17 years old was
because of not having the need for it and also that they do not have any
money to put in the account.
In addition to young age segment, one’s income level also contributes to
the unbanked situation. It is observed that Malaysians with no income as well
as those with monthly household income of less than RM3,000 i.e. B40, are
also among the unbanked. Likewise, Malaysians residing in rural areas
specifically Malaysians in the northern region, and in East Malaysia.

1 Deposit Account products measured here comprise of all forms of deposit products namely saving
account, current account, fixed deposit account. Financing Account products is comprised of all forms of
financing such as secured, unsecured loans, mortgage, car etc., includes credit cards.
2 The Global Findex Database 2017, Measuring Financial Inclusion and the Fintech Revolution.

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