MIFC epicentre is here again to update you on exciting news in Islamic finance, highlighting on the rising trend of financial technology (fintech). Over the years, more people are adapting to fintech, looking at the fast growing number of transactions using e-payments. With the continued rise in technology innovation and demand, Islamic finance industry also joins the fintech wave. For example, several initiatives related to Islamic finance and fintech such as integrating social finance into Islamic financial services through technology have been introduced into the market, to enhance competitiveness and increase productivity of the sector. The MIFC Team has produced an infographic on Islamic fintech for your reference to better understand the concept and latest initiatives of the industry.
In a recent speech by Governor of Bank Negara Malaysia at the MyFintech Week 2019, fintech is seen holding enormous potential to enhance competition, increase productivity, address unfulfilled consumer demand and fundamentally change the way institutions provide financial services.
S&P Global Ratings believes the global Islamic finance industry will continue to expand slowly in 2019-2020. However, inclusive standardization, financial technology (fintech), and opportunities related to the industry's social role could help accelerate growth in the next few years.
Malaysian Islamic financial institutions are seen to be actively looking to embrace digitalisation to support growth as Islamic finance has reached a tipping point and is set to see more digital product launches in the next six months.
Younger customers are expected to play a crucial role in the growth of Islamic finance and expand its customer base in the future with an expanding young Muslim population, which is expected to reach 3 billion in 2060, up from 1.8 billion in 2017.
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