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The Islamic fintech sector is rapidly digitalizing, keeping pace with the global finance industry’s digital transformation.
The Islamic fintech market is expected to grow to US$128 billion (RM542 billion) by 2025, according to Dinar Standard’s Global Islamic Fintech Report 2021. The volume of Islamic fintech transactions in the Organisation of Islamic Cooperation (OIC) countries was estimated to be US$49 billion last year.
Malaysia is ready to capitalize on and serve the global Islamic fintech market, thanks to its impressive growth in the Islamic finance market. In terms of market maturity, the country is first, and it is one of the top five Islamic fintech markets in terms of transaction volume.
The Malaysia Digital Economy Corporation (MDEC), the country’s leading digital economy agency, will lead a delegation of 20 Malaysian companies to Expo 2020 Dubai from January 9 to 15, 2022, to showcase their products and services as part of the Digital Economy Week. The expo will give local industry leaders a chance to show off 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.”
Game-changing innovators
At Expo 2020 Dubai, some of the industry’s leading innovators will be on hand to demonstrate their solutions. MicroLEAP, a Securities Commission Malaysia-regulated Islamic and conventional peer-to-peer (P2P) microfinancing platform, is one of them (SC). The platform is a Malaysian peer-to-peer (P2P) operator that provides both Islamic and conventional financing.
MicroLEAP has seen tremendous growth since launching its Islamic P2P investments in April 2020, raising RM2 million in 71 funding notes, 97 percent of which are Islamic. MDEC has also partnered with the platform for its eBerkat campaign.
TheNoor, the brainchild of actress and entrepreneur Noor Neelofa Mohd Noor, is another Islamic fintech player poised to break onto the global stage. Users can use the app to keep track of prayer times and listen to Quran verses. It can also be used as a Qiblah finder and an electronic wallet. Tabung Haji Travel & Services Sdn Bhd recently partnered with TheNoor to provide shariah-compliant travel and holiday services.
HelloGold, a collection of award-winning tech companies, will present their extensive offerings in investable gold. It is the world’s first shariah-compliant mobile application, launched in 2015, that revolutionizes the way you buy, save, sell, and redeem physical gold. HelloGold is a user-friendly app that allows users to diversify their investments into gold. It currently has over 200,000 users.
Global Sadaqah, an innovative Islamic crowdfunding platform, also allows for seamless contributions to zakat or waqf campaigns that are verified and approved by its in-house shariah team. Donations can be made through a variety of channels, including Malaysian eWallet providers, Bitcoin, and digital gold.
WAHED Technologies, an Islamic digital investment management firm, offers a shariah-compliant Robo-advisory portfolio. The platform currently has over 200,000 clients in over 100 countries, all of whom have access to a variety of stocks and Sukuk (Islamic bonds), which the platform will invest in automatically based on the client’s risk profile.
Global Psytech has brought data analytics solutions to a variety of industries by integrating multiple scientific disciplines such as artificial intelligence (AI), machine learning, and cognitive science. General Financial Insights (GFI), the award-winning data technology company’s flagship product, acts as an alternative credit risk assessment system.
These local businesses are ready to shine at Expo 2020 Dubai’s Digital Economy Week by sharing their knowledge of the thriving financial ecosystem with a global audience.
