Kuala lumpur: Payments Network Malaysia Sdn Bhd (PayNet) is exploring the development of a federated artificial intelligence (AI) model, tentatively called FinancialGPT, to enhance fraud detection and strengthen security in digital payments.
According to BERNAMA News Agency, PayNet chief of staff Dr Endry Lim Zhen Wen stated that the large transaction model (LTM) would be trained solely on Malaysia’s financial transaction data to bolster resilience against cyber threats. Dr Lim emphasized that the model aims to tackle fraud and scams, ensure broader financial inclusion, and address compliance challenges specific to the Malaysian market while ensuring sensitive data remains within the country. The initiative seeks to integrate global best practices with national sovereignty, making it uniquely tailored to Malaysia’s requirements.
Dr Lim highlighted that PayNet is in the initial stages of this endeavor and is progressively building its capabilities. He noted the importance of rigorous checks for explainability, bias, and fairness to ensure accountability. PayNet is collaborating with leading researchers from prestigious global institutions, including MIT CSAIL and Imperial College London, to address issues such as cyber risk, data privacy, and AI governance. These partnerships aim to align PayNet’s approach with Malaysia’s regulatory framework.
Furthermore, Dr Lim pointed out Malaysia’s ambition to develop as an AI hub, which faces two primary challenges: building talent and fostering public trust. He mentioned the industry’s shortage of skilled AI and data science professionals, particularly those experienced in financial services, as a limitation to deploying secure, innovative, and fair AI solutions at scale. Public trust, he added, relies on transparency and accountability, especially in finance, where customer protection and system resilience are crucial.
Dr Lim stressed that regulation alone is insufficient to address these challenges and that genuine progress requires robust collaboration across government, industry, and academia. He also noted that Malaysia’s involvement in the ASEAN Digital Economy Framework Agreement (DEFA) positions PayNet to play a critical role in transforming cross-border digital payments into a seamless, inclusive, and secure ecosystem. DEFA’s vision for a real-time, multi-currency payment system aims to reduce transaction costs, accelerate settlements, and enhance payment efficiency across the region, which is projected to expand ASEAN’s digital economy to an estimated US$2 trillion by 2030.