There is escaping the sheer fact that Islamic finance and Fintech, on their own, are two growing segments in global finance you can never risk skimping on. And this doesn’t come as a surprise considering Islamic finance serves a core population of 1.8 billion Muslims world-wide and a broader audience of ethical finance consumers.
Things are not any different with Fintech, considering modern tech and automation have been a vital part of global financial services in the last century. Actually, there is no slowing down if the benefits Fintech brings to global financial services are anything to go with.
Having said that, today we will help you determine how you can leverage Islamic Fintech to improve financial inclusion. Let’s get started!
Helps Boost Reach and Impact of Islamic Financial Services
Before going any further, you should know that Islamic financial institutions worldwide are now building digital-only banking and capital markets to cater to the digital-demographic. This comes in handy considering it helps boost service delivery among the masses.
That’s not all, since they now focus on customer base targeting through artificial intelligence and big analytics. Not to mention it helps facilitate cross-border trade and financing through P2P lending and trade financing.
Support Global Sustainable Development Goals (SDGs)
Islamic fintech can tap into the Islamic social financing pool to fund wider global social funding needs. These opportunities, however, also open up new risks that require careful mitigation. Among them is increased debt-fueled consumerism from more convention borrowing facilities and the emergence of new methods of scams a fraud.
You should also concentrate on the acquisition of products and services that aren’t necessary by customers due to a lack of consumer knowledge by AI models. Keep in mind mitigating these risks require ensuring adherence and compliance to Shari’s knowledge, values and vision. This includes newer products and services are aligned with the principles of Shari’a.
In help drive these changes, investors should target large Muslim markets with their Islamic fintech services as well as acquiring developing Islamic fintech solutions to boost operations.
Lina Mark is the Partner and Editor-In-Chief at Keulj.us. She loves technology and is always hooked on new technology in the market. You will often find her browsing the web for interesting content (mostly sci-fi and tech). She is addicted to movies (mainly action) and loves to read interesting books every once in a while.
