Islamic Fintech As Enabler of Financial Inclusion
Kuala Lumpur, 3 Nov 2022 – Digital finance and financial inclusion will continue to intertwine to become a means to an end for both. There have been considerable efforts for digital finance in Islamic finance to close the financial inclusion gap, but much remains to be done, said INCEIF University Board Member Ms Siti Kamariah Ahmad Subki.
She was speaking at the 5th International Islamic Fintech Dialogue (IFD) 2022 held on INCEIF University campus. Themed `Digital Finance & Financial Inclusion: Current Practice, Impact and Future Trends’, IFD2022 was attended by over 100 participants from various countries including from Indonesia, Nigeria and Pakistan.
“Islamic fintech as an emerging industry should take advantage of new technologies, changing demographics and consumer behaviour, strong network effects, regulatory changes, and underserved market segments. And be ready to take the challenge of providing better experience in terms of speed, convenience, ease of use, Shariah compliance and other needs of customers in the Islamic digital
“In a not-so-distant future, we can expect that digital finance will be part of the mainstream, or perhaps even becoming the primary mode of delivery for financial services to the entire country. To achieve the ultimate goal of financial inclusion, everyone from policy makers and regulators to technology developers and providers will need to play their role,” Ms Siti Kamariah said in her Opening Address.
IFD is an annual conference that focuses on the convergence of the Islamic finance and fintech industries. Started in 2017, IFD was one the first few international Islamic fintech gatherings and remains a highly anticipated event in the Islamic fintech calendar specifically, and finance generally.
This year’s dialogue was co-organised by INCEIF University with ISRA Research Management Centre and the main sponsor, Bank Kerjasama Rakyat Malaysia Bhd. The event also received support from the Association of Shariah Advisors in Islamic Finance and RAM Rating Services Berhad.
INCEIF University has continued to play its role in the advancement of Islamic digital finance and financial inclusion, especially in relation to financial inclusion.
In July last year, INCEIF was appointed as the Neutral Entity for i-Connect Fintech in Islamic Finance by the Academy of Sciences Malaysia, under the purview of the Ministry of Science, Technology and Innovation or MOSTI. INCEIF is steering the consortium, consisting of 17 Founding Members who represent the industry, academia, government and civil society to catalyse innovations, nurture talent and develop home-grown high-value innovations in Fintech for Islamic finance.
i-Connect is tasked with the role to propel Malaysia to be the global Islamic Fintech innovation hub. By collaborating with MaGIC, ASM, MOSTI and other stakeholders, INCEIF aims to leverage on its collective resources to spur Islamic Fintech innovation in Malaysia and globally. This will enable Malaysia to leverage on new economic opportunities in disruptive innovation and prepare Malaysian industries to enter emerging global markets.
As a thought and knowledge leader in Islamic finance, INCEIF is proud to be part of this national effort. Together, the university looks forward to develop home-grown high-value innovations in fintech for Islamic finance by bridging the gap between R&D and business through knowledge-based innovations.
Another initiative by INCEIF is the I-FIKR platform which offers an eco-system of knowledge sharing and resources related to Islamic economics and financial system. I-FIKR seeks to provide a one-stop digital hub that empowers and connects the Islamic economics and finance ecosystem and creates general awareness and talent development for the industry. The I-FIKR platform is dedicated towards being a central point of reference on Islamic financial literacy.