BNM’s Open Finance Is Coming. And You’ll Finally Control Who Sees Your Financial Data

Imagine telling your bank to send your transaction history directly to a loan provider securely, instantly, without scanning documents or emailing PDFs. That’s the future Bank Negara Malaysia (BNM) is building, and it’s closer than most Malaysians realise.

Open Finance Malaysia (OFM) is a consent-based framework that lets you decide which approved financial service providers can access your financial data and when. Think of it as a secure switchboard between your accounts with you holding the keys.

What is Open Finance Malaysia?

Open Finance is a system where your financial data can be shared between institutions, but only with your explicit permission. BNM’s Exposure Draft, released on 18 November 2025, defines Open Finance as a framework that enables permissioned sharing of customer information between a data provider and a data consumer in a secure, open, accessible, interoperable, and timely manner. In plain terms: your bank becomes a data provider, and an approved third party, say, a robo-advisor or lender, becomes the data consumer. Nothing moves without your say-so.

When is Open Finance launching in Malaysia?

A pilot is already in motion. Technical development is being led by PayNet with support from seven banks and the Employees Provident Fund (EPF), with implementation targeted as early as mid-2026. According to BNM Assistant Governor Suhaimi Ali, Open Finance is a key priority under Malaysia’s Financial Sector Blueprint 2022-2026, with the goal of giving customers the right to exercise control over their personal data in a trusted, secure and structured environment.

What can you actually do with Open Finance?

Initial use cases include personal financial management, where individuals can consolidate information from multiple accounts and get a clearer view of their finances, as well as API-based document submission, which could simplify account opening by allowing documents to be sent securely through digital channels.

For small business owners, the benefits go even further, lenders may be able to assess businesses using alternative data such as cash flow and transaction records, potentially unlocking credit for those previously underserved by traditional scoring methods.

This is particularly significant for gig workers and freelancers who struggle to qualify for personal loans or home financing due to a lack of formal payslips.

Is your financial data safe under Open Finance?

Yes, and the protections are significant. PayNet’s role will be limited to facilitating encrypted and secure data-sharing infrastructure. PayNet will not have the ability to view, read or store consumers’ financial information. All data-sharing activities remain subject to the Personal Data Protection Act (PDPA) and other relevant laws.

Critically, consumers retain the unrestricted right to revoke consent at any time, and upon revocation, the data consumer must immediately cease any access to customer information and securely delete all data without undue delay. Consent records must also be retained by financial institutions for a minimum of seven years in an auditable format.

This is a meaningful step up from the current reality, where sharing financial data often means emailing bank statements as PDFs, a practice that is neither secure nor traceable.

What should Malaysians do now?

Nothing yet, but understanding what’s coming matters. The framework is being developed to ensure that trust, readiness, and security are built across all levels of the financial ecosystem before broad rollout.

In the meantime, it’s worth getting your financial house in order. Ensure your credit score is healthy, your emergency fund is in place, and that you understand your existing banking products. When Open Finance arrives, those with clean, well-documented financial histories will benefit most, they’ll be first in line for better loan rates, personalised products, and faster approvals.