The stakeholders and other ecosystem participants of the Islamic Fintech sector have outlined key priority areas that they believe will help with reinforcing and promoting financial inclusion in Malaysia.
The REDmoney Group, an Islamic Finance News publisher, and the Malaysia Digital Economy Corporation (MDEC) have recommended that industry participants should establish an Islamic Fintech taskforce. They’ve also suggested that there should be projects that focus on supporting digital and Islamic financial literacy initiatives.
REDMoney and MDEC further noted that Fintech industry players should form “smart” partnerships while also supporting initiatives that will help traditional Islamic institutions with their digital transformation strategies.
“Instrumental to the success of these initiatives are the collaborations between industry participants – startups, financial institutions, religious bodies, as well as the government and regulators.”
The key priority areas for Islamic financial technology development were reportedly prepared after receiving feedback from decision-makers and other Fintech ecosystem leaders who attended the Islamic Fintech Dialogue 2020: Driving Financial Inclusion through Islamic Fintech event (held virtually in May 2020).
REDMoney and MDEC noted:
“The key findings from the dialogue session are in line with the government’s Shared Prosperity Vision 2030, an initiative that aims to leverage on the country’s Islamic finance global leadership and digital economy aspiration to create sustainable growth while ensuring fair and equitable market access for all Malaysians.”
Surina Shukri, CEO at MDEC, remarked:
“While much larger businesses and corporates can navigate and pivot quickly to digitalise, most small businesses are still struggling to survive. In fact, financial inclusion is now one of the primary factors that will sustain and drive forward the economy. The end-goal is to ensure that the micro, small and medium enterprises (MSMEs) will be empowered via Islamic fintech and financial inclusion.”