{"id":1253,"date":"2017-12-28T01:04:55","date_gmt":"2017-12-28T01:04:55","guid":{"rendered":"https:\/\/blog.ethis.co\/?p=1253"},"modified":"2022-11-15T08:30:51","modified_gmt":"2022-11-15T08:30:51","slug":"islamic-fintech-and-islamic-banks","status":"publish","type":"post","link":"https:\/\/ethis.co\/blog\/islamic-fintech-and-islamic-banks\/","title":{"rendered":"Islamic Fintech \u2013 A Threat for Islamic Banks or an Opportunity?"},"content":{"rendered":"

Islamic Fintech is still in its early phase; nonetheless, its potential disruptions to traditional Islamic banking and finance (IBF) should not be underestimated.<\/span><\/p>\n

According to the assistant governor of Malaysia, Mr Marzunisham Omar, \u201cThe growth of Fintech provides \u201cinnovative opportunities\u201d within the entire financial sector<\/a> and thus Islamic Fintech cannot be ignored by the IBF industry, particularly in Malaysia\u201d.<\/span> Fintech has been growing speedily with a global investment reported to be at USD19 billion in 2015, compared to only USD1.8 billion in 2010.<\/span><\/p>\n

The main types of services offered by Fintech are peer-to-peer (P2P) lending, crowdfunding, money transfer, mobile payments and trading platforms. In addition, there are also Fintech services for other sub-segments such as wealth management, insurance, etc.<\/span><\/p>\n

In the Islamic finance arena, there are a few prominent Islamic Fintech companies among others include Singapore-based KapitalBoost<\/a>, Malaysia-based Ethis Kapital Sdn. Bhd. which operates NusaKapital.com<\/a> and US-based Wahed Invest LLC<\/a> in the segments of P2P lending and crowdfunding.<\/span><\/p>\n

\"Services
Source: Author’s Own<\/figcaption><\/figure>\n

Opportunities<\/b><\/p>\n

Fintech creates various opportunities. For instance, through Fintech, financial transactions will become more automated, user-friendly and more convenient, leading to a higher customer experience. <\/span><\/p>\n


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