15 November 2019, Jakarta, Indonesia - The Islamic Financial Services Board (IFSB) Summit 2019, themed “Islamic Finance for Sustainable Development in the Era of Technological Innovation”, commenced with opening remarks by the Secretary General of the IFSB Dr. Bello Lawal Danbatta and a Keynote Speeches by H.E. Dr. Perry Warjiyo, the Governor of Bank Indonesia and Chairman of IFSB Executive Committee, Dr. Zeti Aziz recipient of Royal Award for Islamic Finance and former Governor Bank Negara Malaysia and a Special Keynote message from the Prime Minister of Malaysia, Honourable Tun Dr. Mahathir bin Mohamad. The one and a half day IFSB Summit 2019 is being held in the Jakarta Convention Center on 13 and 14 November 2019 and is hosted by Bank Indonesia.
In his opening address, the Secretary-General of the IFSB, Dr. Bello Lawal Danbatta, highlighted that the theme of the Summit points to the future of Islamic finance. He also stressed that economic challenges, environmental awareness and technological innovations will change the traditional understanding of how the financial industry should operate. Sustainability is a growing concern among investors, industry players and regulators who have become particularly concerned about environmental impacts of financial activities.
Dr. Bello Lawal Danbatta further outlined that the technological developments have led to the emergence of conceptual innovations and new tools in the Islamic financial services industry. However, these developments need a strong regulatory, supervisory and legal underpinning that can facilitates the mainstreaming of the instruments. The IFSB is well-aware of these trends and will address and harness the emerging issues of the technological innovation.
In his keynote speech, His Excellency Dr. Perry Warjiyo said: “It is heartening to note that Indonesia is hosting the IFSB Summit 2019.” As the Chairman of the Executive Committee of the IFSB, he appreciated the progress made so far by the organisation and expressed his confidence that ongoing reforms will advance the IFSB to the next level.
He outlined five grand strategies to develop Islamic finance in the era of the technological innovations, which are:
1. Supporting the digitalisation of Islamic banking;
2. Interlinking Islamic banking with FinTech;
3. Encouraging start-up innovations for Islamic finance development;
4. Developing the infrastructure for payment systems and the Islamic money market;
5. Strengthening cross-border collaboration and cooperation among the IFSB members.
These strategies will make the Islamic finance industry future-proof in the era of digitalization and foster the inclusive and sustainable economic growth in Islamic countries.
The IFSB Summit 2019 saw two further high-profile keynote addresses. The first one was delivered by Dr. Zeti Aziz, the former Governor of Bank Negara Malaysia. In her address, Dr. Zeti Aziz lauded the rapid technology-led innovations in the financial services industry. They have dramatically changed the way in which financial systems operate across the globe. While the technological innovations may have been disruptive to the current structure of the financial services sector, they have unleashed a tremendous potential for the enhancements of the effectiveness and efficiency of the financial system.
Dr. Zeti Aziz also highlighted that the impact of the rapid technological innovation would be positive for the development of Islamic finance as the cost of transactions are significantly reduced, the outreach is extended, economic participation increased, and greater financial inclusion achieved. However, technological developments require regulations and standards that address potential risks such as the improper use of data, fraud, cybercrime, and money laundering. The IFSB can play an important role as a repository of policy responses to financial innovations as well as a facilitator for the coordination and harmonization of such responses across borders.
The second Keynote Address was delivered by The Honourable Tun Dr. Mahathir bin Mohamad, Prime Minister of Malaysia via video. In his special video message, he expressed his gratification at the positive development of the global Islamic finance industry and its positive impacts on the financial system in general and financial inclusion in particular. H.E. Tun Dr. Mahathir bin Mohamad also said that it is heartening to see how the IFSB has flourished and has become a highly respected international standard setting body for the Islamic financial industry.
The one and half day Summit will continue with sessions on:
- Leveraging Islamic Finance to Enhance Socio-Economic Inclusion and Sustainable Development
- Mainstreaming Islamic Finance through Technology: Building A Robust Regulatory Ecosystem
- Broadening Access and Resilience in Digital Islamic Finance: Opportunities and Challenges
- Emerging Technology and Innovation in Islamic Finance: Opportunities and Risks
- The Way Forward for Islamic Finance
The IFSB Summit 2019 is being attended by key Islamic financial services industry leaders, representatives of regulatory and supervisory authorities and delegates of financial institutions that are members of the IFSB, as well as stakeholders of the local Indonesian financial community.
For more information on the IFSB 14th Summit 2019 and other Pre-Summit events, please register your participation, at the IFSB website, https://ifsbindonesia2019.com/
Copyright Press Releases 2019