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Tuesday, January 19, 2021 / 8:32AM /
Bukola Akinyele-Yisau for WebTV / Header Image Credit: WebTV
In a recent interview with the Islamic Markets
platform the Chief Executive Officer of Bank Islam Malaysia Berhad, Mr.
Muazzam Mohamed, believed Islamic banks have a key role to play in
leveraging technology to close the gap in financial inclusion.
Providing insight into the potential role of
technology in Islamic finance, he said technology does not only transform lives
but enables an equal opportunity for all, such as the availability of
smartphones and a lot of content on YouTube to enable learning. Technology, he
notes, has changed the learning structure like never before, similarly for the
banking sector's development.
Digitization he stated was vital to financial
inclusion and ensuring greater equality and opportunities. He said the vision
of the Islamic banking system was to advance the prosperity of society and to
give financial access to the unserved and underserved members of society.
He added that in enabling financial inclusion,
digitization and technology should be used to find and develop innovative ways
to provide affordable financing for all.
"Most Islamic banks still rely on traditional data to
evaluate the creditworthiness of an individual applying for a loan as we are in
the 21st century we need a data point that collects customer
behaviour" he said.
The role of Islamic banks today is not only to serve
as a financial intermediary but to also intermediate the creation of social and
economic benefits.
The CEO noted that Islamic banks or Bank Islam in
Malaysia particularly adopted an approach to strategically offer banking
products, services, and initiatives beyond the traditional banking
culture. According to him, the approach was to deliver social impact and
economic returns beyond providing Shariah-compliant frameworks.
Speaking further he identified the fact that one of
their key initiatives was to promote financial inclusion especially for those
people who are less privileged.
The CEO of Bank Islam Malaysia Berhad said the bank
was able to raise a donation from the public to support high-impact, socio
initiatives in collaboration with the government.
Through the use of savings data, he made a strong case
for Islamic banks to promote financial literacy for their customers to empower
them and provide opportunities for small-scale businesses to access
funding.
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