Fintech and regtech will drive stronger future growth in Islamic Finance
Research* with leading Islamic Finance professionals reveals they expect fintech and regtech to make a major contribution to future growth in their sector with regtech a ‘potential game-changer’ for the industry.
Around 89% of professionals questioned say fintech has already accelerated digitalisation of Islamic Finance products and made them more accessible globally while redefining client experiences.
However, the research holds out the prospect of regtech – which aims to solve regulatory and compliance barriers using robust digital tools to achieve compliance with Shariah requirements through methods such as smart contracts on blockchain – is having a major impact on growth.
Around one in three (34%) questioned believes the impact of regtech on growth will increase dramatically over the next three years while 47% predict it will increase slightly.
The research was conducted by Maybank Islamic Berhad, the Islamic banking arm of Maybank Group, and IslamicMarkets.com, a leading platform that provides access to expert knowledge and financial opportunities, to support their upcoming forum entitled The Global Connect Forum, with the theme of ‘Driving Sustainable Impact Through Islamic Finance.’
Dato’ Mohamed Rafique Merican, Chief Executive Officer of Maybank Islamic Berhad said: “In common with many sectors, technology is transforming Islamic Finance with fintechs already making a major contribution to growth and accessibility. From the findings of this survey, 43% of the professionals working across a wide range of sectors expect the next three years will see the impact of Islamic fintech accelerating the growth of Islamic Finance in the ESG and Sustainable Investment sector.”
Shakeeb Saqlain, CEO of IslamicMarkets added: “The Islamic Finance market is growing strongly and much of that growth in recent years has been driven by fintech. The next three years will see even stronger growth as digitalisation accelerates.”