KUALA LUMPUR, March 10 — The Islamic finance industry can play a more significant role in the global digital economy by experimenting and employing new technology solutions, said Bank Islam Malaysia Bhd chief executive officer (CEO) Mohd Muazzam Mohamed.

Noting that the current Covid-19 pandemic had accelerated digital shifts, he urged industry players to play a significant role in and take charge of the digital economy.  

"We need to be agile in responding to the digital shifts. All of us should always keep in mind that we should not get caught failing to recognise new disruptive trends and technology, unwilling to pivot due to complacency or even not trying to spot the emerging opportunities,” he said during a session on "Global Update on Islamic Digital Banking and Islamic Fintech” at the 16th Kuala Lumpur Islamic Finance Forum (KLIFF) held virtually today.

Mohd Muazzam said Bank Islam, being the first Islamic bank in the country, had taken charge to establish the Centre of Digital Experience (CDX) and was now working to lay a foundation to set up a sub-brand digital banking window to help harness the growing digital economy. 

He said the CDX would be able to innovate and push new boundaries.

"Our digital bank window will then feed, not replicate, what Bank Islam is doing. it will provide a platform-based solutions so that more people can have Shariah-compliant products,” he added.

Mohd Muazzam said the bank would provide an ecosystem to empower the underserved such as the gig workers, independent contractors, and solopreneurs.

Shariah-compliant mobile application HelloGold’s CEO and co-founder Robin Lee said the move to digitalise the Islamic finance industry would benefit the end-users and financial technology players like the company.

"We want to look for a segment in the landscape that we believe that we can fundamentally change and compete in successfully, where we see inefficiency or an ability to create access and therefore get customers to generate profits,” he added.

Lee said the company’s motivation in Islamic finance or traditional sectors was to exploit the opportunities it saw and create products and services, which in turn provided a challenge to traditional providers to react to.

"They should react because they also see the opportunity to get (into) the space, which would lower their cost and improve their margins,” he added. — Bernama