Islamic Digital Banking Innovative Solutions

Problem Statements

In line with the announcement of digital bank licenses by Bank Negara Malaysia (BNM), we would like to foster innovation projects within the paradigm of Fintech in Islamic Finance. With the spirit of Malaysia’s Shared Prosperity Vision 2030 to have a decent standard of living for all Malaysians by 2030, one of the key economic growth areas is the Islamic Finance Hub 2.0, which emphasises the inclusivity and equitable growth of the nation. Hence, we are looking forward to potential solutions that are within the following six (6) areas to nurture innovation within the Fintech sector of the Islamic Finance ecosystem.

Relevant & Dynamic OKRs

  • Creating relevant and dynamic Objective Key Results (OKRs), particularly for asset-based contracts and transactions.
  • Thinking about people, planet, and profit-oriented business models.
  • Introducing unique Customer Lifetime Value (CLV) approaches to solve issues for underserved and unserved segments.

Scaling via Alignments

  • Solution that can help Islamic Digital Bank scale up with Shariah principles and align with the Environment, Social, and Governance (ESG) concept.
  • Embark to operationalise the value-based banking and intermediation.
  • Introduce innovation and technology as a service (TaaS) as well as sponsor banking as a service and review the relevancy of the potential solution.

Ecosystem Focus

  • May cover not only just financial services, but also capital market, advisory, and other relevant aspect that could make as large an ecosystem as possible.
  • Not only to have a large ecosystem, but also to build a customer-focused culture by introducing bite-sized, personalized solutions.

Innovative Board & Management

  • Most of the solutions are difficult to accept, which may be due to the board’s lack of receptivity or the senior management’s lack of openness to the solution.
  • The approach to getting buy-in from key decision makers should be thought through for the solution to be acceptable in the market.

Data-driven Risks & Pricing Framework

  • It has to be data-driven, particularly with a focus on the risks and pricing framework, because the potential solution may not work without data.
  • The participant has to understand the data will not only be useful but also be able to comply with the necessary regulations, particularly when looking into deploying RegTech and Governance, Risk, and Compliance (GRC) and Shariah compliance.

Dynamic Narrative

  • Showcase a creative narrative and approach, as well as how it could be relatable to various stakeholders.

Guidance notes for projects applying for i-Connect Fintech in Islamic Finance 2022/2023

  • Original solutions that could be ‘sandboxed’
  • Customer-centric & stakeholder focus technology solutions
  • Shariah-compliance industry infrastructure
  • Smart contract solutions all banking underwriting
  • Data-driven decision-making modules for credit & Value-based Intermediation (VBI)
  • Governance, Risk & Compliance (GRC) for risks and shariah compliance management
  • Sponsor-banking concept for Islamic Digital Banking
  • Portable modular tech-based solutions
  • Alignment between Shariah principles with Environment, Social & Governance (ESG), ethical & universal good values