Malaysia’s Islamic fintech sector has been having a ‘good pandemic’
KUALA LUMPUR - The COVID-19 pandemic has given a shot in the arm to the digitalisation of Islamic finance in Malaysia, jolting this sluggish sector to finally move forward more quickly through collaborations between institutions and financial technology specialists.
Though the country boasts of being a hub for Islamic finance, its institutions have been slow to adopt fintech in the way that conventional finance has raced forward in the last decade. Banks in particular have been wary about delivering more digital services to their customers, but the pandemic has given them a fresh opportunity that some institutions have embraced.
“It could be true that the pandemic has forced institutions to act quickly over the last year by forming partnerships with fintechs, rather than just relying on their own developers, which they have typically done,” said Dr. Moutaz Abojeib, a researcher at the International Shariah Research Academy for Islamic Finance (ISRA) in Kuala Lumpur.
Free, in under 30 seconds
Join thousands of professionals reading Salaam Gateway — the Global Islamic Economy Gateway.
Already a member? Sign in
- 5 free articles every month
- Weekly Islamic-economy newsletter
- Save articles to read later
