KUALA LUMPUR, July 8 (Xinhua) -- The future of the financial sector will continue to be anchored in trust and its ability to broaden opportunities for society even as it continues to benefit from advancements in technology, the head of Malaysia's central bank said on Wednesday.
This will not be an impediment to innovation, as regulators will engage with industry to provide clearer regulatory expectations, supporting responsible experimentation and investing in shared infrastructure that enables innovation at scale, Bank Negara Malaysia governor Abdul Rasheed Ghaffour said in his opening address at the Asian Institute of Chartered Bankers Nexus 2026 Conference.
"Innovation without trust is not progress. Today, artificial intelligence (AI) is reshaping financial services. It is helping institutions detect fraud, assess credit and insurance risks, strengthen compliance, manage risks more effectively, and serve customers better...after all, finance is built on trust. Trust that savings will be safeguarded. Trust that capital will be allocated efficiently. And trust that the institutions, governance and rules underpinning the system remain credible and resilient," he said.
Abdul Rasheed said that as AI becomes more deeply embedded in financial services, the role of professional judgement becomes even more important, and while machines may generate insights and support decisions, accountability must remain with those entrusted to govern and lead. "Responsibility cannot be delegated to an algorithm," he said.
Abdul Rasheed added that the development of the financial sector will be grounded in industry realities while addressing real challenges and remaining aligned with the evolving needs of the economy. ■
