Digital adaptation needed in financial sector, says Islamic fintech firm

The introduction of WhatsApp Chatbot will enable banks to secure Akad (acknowledgement and confirmation of contract). — Reuters pic
The introduction of WhatsApp Chatbot will enable banks to secure Akad (acknowledgement and confirmation of contract). — Reuters pic

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KUALA LUMPUR, April 9 – Digital adaptation is strongly needed in the financial sector in order to maintain its capability especially during crises, says Sedania As Salam Capital Sdn Bhd.

The wholly-owned subsidiary of Islamic Fintech company Sedania Innovator Bhd said mindful digital transformation is needed as the market braces for disrupted workforces amid the impending global uncertainty.

Its chief executive officer Khairul Nisa Ismail said with digitisation, financial proceeds can be made easier, and for its part the company has launched SMS and Email Akad as features on the As-Sidq Tawarruq Platform.

“With the introduction of WhatsApp Chatbot, our banking partners are now able to secure Akad (acknowledgement and confirmation of contract) and immediately distribute financing to deserving applicants on more familiar turf,” she said.

She added that another issue that surrounds the financial landscape is assistance for Malaysians that might be denied to them via traditional scoring methods, although this issue needs to be treaded neatly without adding to the ballooning global debt problem.

“Recently, Sedania also launched Al Thiqa, granting loan applicants the option of enabling an e-mandate that will auto-deduct the owed fees at a specific time. The choice to enable the e-mandate reduces the applicant’s risk levels, without significantly increasing the financial institution’s default rates,” she said.

Khairul Nisa said that with the collaborative spirit, the company returned to the black in the fourth quarter of last year, which she attributed to the increasing transactions processed on the company’s business-to-business (B2B) credit processing platform As-Sidq.

As-Sidq is an Islamic Financial Tawarruq Trading System that has been adopted by more than 55 financial institutions in the country. The company is the only one in the region that uses digital commodities for financing. — Bernama

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