Autoriti Monetari Brunei Darussalam (AMBD) has developed a roadmap to further aid its transformational efforts on the sultanate’s payments industry.
The “Digital Payment Roadmap for Brunei Darussalam 2019-2025” sets out to address three key strategic areas of balancing regulation and innovation; adoption of open digital payment; and public awareness and education.
The first key area requires the evolvement of existing payment regulations to maintain stability in the financial sector, promote collaboration among market players as well as allow existing financial institutions.
Prospective service provides are to develop innovative financial solutions under this focus.
The second key area involves greater adoption of digital payment solutions to promote market inter-operability and encourage fair market competition.
New innovative technology can lower barriers to adoption and will offer secure and cost-effective payment mechanism for acceptance of digital payments by merchants.
The final key focus involves a collective effort between AMBD and the industry in enhancing public awareness and education geared towards building digital trust and market confidence towards the acceptance of digital payments.
AMBD expects a paradigm shift where there will be more integrated collaboration between the central bank and relevant stakeholders in developing platforms for digital payments that are safe, efficient and resilient.
This will enable the growth of financial technology and the emergence of new financial products and services.
Since its establishment, AMBD has madegreat strides in developing the domestic financial market infrastructure including the introduction of the Real-Time Gross Settlement (RTGS), the Automated Clearing House (ACH) in 2016 and the Central Securities Depository (CSD).
The introduction of Direct Credit Transfer in the ACH system in February last year has also contributed in the reduction of physical cheques usage by over 18 percent this year, compared to 2016. The value of cheques processed in 2018 compared to the previous year is expected to decrease by 27 percent.
With the rise of the Fourth Industrial Revolution, the public has become more tech-savvy and technology has become embedded within society.
The publication of the Roadmap will guide all relevant stakeholders in the payment industry to rise to the challenge of becoming a digital economy and cater to the needs of the next generation.
AMBD will continue to strengthen and manage the industry’s technology risk and cybersecurity matters by providing regulatory guidance to financial institutions and conducting on-site and off-site assessments.
The central bank will also continue to monitor and supervise technology risk and cybersecurity in financial institutions.
The Bruneian | BANDAR SERI BEGAWAN