Malaysia ready to become a global leader in Islamic fintech
28 Dec 2021
The Islamic fintech sector is undergoing rapid digitalisation, matching the speed of the digital transformation of the global finance industry.
According to Dinar Standard’s Global Islamic Fintech Report 2021, the Islamic fintech market is projected to grow to US$128 billion (RM542 billion) by 2025. Last year, the Islamic fintech transaction volume within the Organisation of Islamic Cooperation (OIC) countries was estimated at US$49 billion.
With its impressive growth in the Islamic finance market, Malaysia is ready to capitalise on and serve the global Islamic fintech market. The country ranks first in market maturity and is one of the top five Islamic fintech markets based on transaction volume.
Malaysia Digital Economy Corporation (MDEC), the country’s leading digital economy agency, will be leading a delegation of 20 Malaysian companies to showcase their products and offerings as part of the Digital Economy Week at Expo 2020 Dubai from Jan 9 to 15, 2022. The expo will provide a platform for home-grown industry leaders to display their solutions for the thriving Islamic fintech industry.
“Islamic finance and fintech are seen as a crucial pillar within the 12th Malaysia Plan [12MP]. They will not only drive a progressive, inclusive and sustainable society but also expand the country’s export market,” says Mahadhir Aziz, CEO of MDEC. “Expo 2020 Dubai will set the stage for these Malaysia-based Islamic fintech innovators to reach a global market, in line with MDEC’s vision for Malaysia to be an Islamic fintech hub.”
Some of the key innovators in the field will be present to showcase their solutions at Expo 2020 Dubai. They include microLEAP, an Islamic and conventional peer-to-peer (P2P) microfinancing platform regulated by Securities Commission Malaysia (SC). The platform, which serves as an alternative financing tool, is a Malaysian P2P operator that offers both Islamic and conventional financing.
After launching in April 2020 with its Islamic P2P investments, microLEAP has experienced tremendous growth, raising RM2 million in 71 funding notes, 97% of which are Islamic. The platform has also partnered with MDEC for the agency’s eBerkat campaign.
Another Islamic fintech player set to break onto the global stage is TheNoor, the brainchild of actress and entrepreneur Noor Neelofa Mohd Noor. The app allows users to keep track of prayer times and listen to verses from the Quran. It also functions as a Qiblah finder and as an eWallet. TheNoor recently partnered with Tabung Haji Travel & Services Sdn Bhd to offer shariah-compliant travel and holiday services.
Forward-thinking Islamic crowdfunding platform Global Sadaqah also allows seamless contributions to zakat or waqf campaigns, which are verified and approved by its in-house shariah team. Donations are facilitated through multiple channels, including eWallet providers in Malaysia, Bitcoin and digital gold.
Islamic digital investment management company WAHED Technologies provides access to a shariah-compliant robo-advisory portfolio. The platform currently serves more than 200,000 clients across more than 100 customer countries, all of whom can access a range of stocks and sukuk (Islamic bonds), which the platform will automatically invest in according to the client’s specific risk profile.
By integrating multiple scientific disciplines, including artificial intelligence (AI), machine learning and cognitive science, Global Psytech has brought data analytics solutions to various industries. The award-winning data tech company was incorporated in 2017, and its flagship product, General Financial Insights (GFI), acts as an alternative credit risk assessment system.
These local companies are ready to shine at the Digital Economy Week at Expo 2020 Dubai by bringing their expertise in this thriving financial ecosystem to a global audience.
Source: The Edge Markets