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Spoke on digitization of Islamic banking as a fuel for global growth at the 11th Kuala Lumpur Islamic Finance Forum on the 12th of November 2014. Appending my slides here.
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ISLAMIC BANKING
the innovation frontier inRaja Teh Maimunah
Chief Executive OfficerHong Leong Islamic Bank
Chief Operating OfficerDigital Innovation & Transactional Banking
Hong Leong Bank
First, a little bit of HISTORY
The MUSLIM empire
was once SYNOMYMOUS
with
INNOVATION
COFFEE
15TH
CENTURY
YEMEN/ETHIOPIA
ALGEBRA
750-850AD
PERSIA/IRAQ
UNIVERSITIES
859AD
MOROCCO
CAMERAS
11TH
CENTURY
CAIRO
NUCLEAR
POWER
1942
ENRICO FERMI
(ITALY)
COMPUTER
1833-71
CHARLES BABBAGE
(ENGLAND)
AUTOMOBILE
1769
NICOLAS-JOSEPH
CUGNOT
(FRANCE)
AIRPLANE
1903
WRIGHT BROTHERS
(USA)
COFFEE
BREWER
1925
GERHARD MARCKS
(GERMANY)
… then we stayed dormant,
and of late, the western world picked up where we left off…
"Islamic finance has proven successful
in poverty alleviation and promoting
sustainable growth in many countries,
including the United States, and it is very
relevant in our country (India) where 20
million people are starving“
V.R. Krishna Iyer
India Supreme Court Judge
With Islamic Finance, we’re back in the innovative front… and the world believes it
“Islam is not only concerned with the
relationship between man and God but it is also
a system of beliefs, justice, equity,
fairness and morality, these being the
values that underpin the entire Islamic way of
life, which is, not surprisingly, the basis for the
creation of Islamic financial products.”
Brian Kettel
Renowned Author
17.6%growth rate
in the last 4
years
total value of Islamic
banking assets
78%contributed by
QISMUT countries
105countries have
Islamic FIs
38millioncustomers
worldwide
1.7trillion
Why should Islamic FIs turn to DIGITAL BANKING
… growing in
customer base -
incurs costs to grow
human capital
… shouldering
additional process
steps before
products are
introduced to
consumers
… lower in cross-
selling despite
having same data
with conventional
ISLAMIC
BANKS
are…
Countries with
Muslim
majority
population
contribute
8%
to the world’s
GDP
32%
of their population
comprise of
under 15-year
olds
Becoming
more affluent in
nascent
lifestyles –
tourism, fashion,
cosmetics etc.
($13.7b spent by
Muslim tourists last year)
Already armed
with the latest
tech
gadgetries as
part of their
daily rituals
MARKET
READIN
ESS
What we’re already doing at Hong Leong Bank
Peer-to-peer Mobile Money Transfer function that allows HLB Connect users to send money to a
phone number, no sharing of account details necessary.
Merchant payment function where customers can pay for their
purchases using their Connect Mobile app.
Connect Mobile app users can generate their own collection code
on their mobile phones to withdraw cash from ATMs without
using their ATM cards
…and the numbers are encouraging!
thank you
terima kasih