Islamic Finance 

Islamic banks slow to adopt tech, start-ups drove innovation in 2017: study

Islamic Finance Gateway | 29 October, 2018 Download |  Print

Shariah-compliant banks have been slow to adopt tech and start-ups drove "substantial" innovation in Islamic finance in 2017, according to new report the State of the Global Islamic Economy 2018/19

It highlighted a handful of achievements and innovations driven by Islamic fintech start-ups, including New York-based Wahed Invest raising $7 million from venture capital, Bahrain-based Waqfe launching its first digital banking platform, and Indonesia-based Blossom Finance launching a blockchain solution for small- and medium-sized businesses to raise financing via sukuk. 

The study also said there is still "substantial" white space for the Islamic finance industry to develop, in particular through a closer alignment to the United Nation's Sustainable Development Goals (SDGs) and broadening access to private equity.

The report also identified Islamic trade finance, estimated at only $186 billion in 2016, as an "under-addressed opportunity".

It said the roadmap to realising the Islamic trade finance opportunity requires the involvement of governments of Organisation of Islamic Cooperation (OIC) countries, multinationals and government entities. 

For the full analysis, the State of the Global Islamic Economy 2018/19 report can be downloaded from here.

 

Islamic banks slow to adopt tech, start-ups drove innovation in 2017: study

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