Barjoyai Bardai of Universiti Tun Abdul Razak said mobile banks were vital to fill the gaps and ensure rural communities have access to banking services.

“This will help boost financial inclusivity among those in rural areas, as they do not have to travel far to deposit, send money or set up accounts,” he told FMT.

Barjoyai said the government’s focus to encourage digital banking could be seen in the various budget initiatives for 2022, such as boosting internet connectivity in the country.

Academy of Sciences Malaysia fellow Madeline Berma agreed, saying it was good that the government was pushing for more mobile banks and focus should also be on developing digital infrastructure.

She said mobile banks were still quite physical and it would take time for Malaysia to transition fully to digital banking.

“The world is moving towards digital banking but this will take time, especially in east Malaysia as it is a massive (area),” she told FMT.

In tabling the 2022 Budget at the end of October, finance minister Tengku Zafrul Aziz said the additional 20 mobile banks were expected to begin operating next year.

The mobile bank initiative was mooted in June with a government allocation of RM18 million for local banks to provide 30 mobile banks nationwide under the Pemulih aid package.