Bank Islam customers may soon look forward to Shariah-compliant products and services from a fully digital bank, following an announcement stating that the financial institution is now setting up the foundation for this initiative. The new digital bank will be built on a flexible platform that allows fintechs, digital marketplaces, and other strategic partners to plug in directly.

According to a statement by Bank Islam, this effort will be carried out through the bank’s new division, Centre of Digital Experience (CDX). It will also see the bank teaming up with three entities, namely Mambu, Experian, and Pod.

Specifically, Bank Islam’s engagement of Mambu – a software-as-a-service banking platform – will allow the bank to configure Shariah-compliant banking products. Meanwhile, leading global information services company Experian will deliver an electronic-Know-Your-Customer (eKYC) solution for customers’ digital onboarding of the products.

Finally, local fintech player, Pod, will assist Bank Islam in the development of new product offerings. In particular, CDX will work with Pod to explore banking solutions for customers who are commonly left out by financial institutions, such as gig workers.

The chief executive officer of Bank Islam, Mohd Muazzam Mohamed said that these partnerships aim to address the needs of the underserved segments. “The bank is confident that we can provide greater accessibility to the market by capitalising on digital technologies. At the same time, this effort will further spur the digital transformation of the financial sector, especially in the Islamic banking industry,” he added.

The co-founder and chief executive officer of Pod, Nadia Ismadi, also chimed in to say that the underserved segments, including gig workers, are struggling to save money and gain access to financial products – especially after the pandemic. “Thus, it is important that we lay the basic building blocks to deep dive into their financial needs in order to service these segments,” she said.

Meanwhile, the managing director of Mambu APAC, Myles Bertrand said that the company is delighted to work with Bank Islam on this initiative. He also emphasised that internet and mobile banking are key to unlocking economic development and financial inclusion.

Bank Islam said that the CDX solution is expected to be ready during the second quarter of 2021.

(Sources: Bank Islam, Bernama)

• TAGS:
• Bank Islam
• Bank Islam Centre Of Digital Experience (CDX)
• Digital Banks
• Experian
• Islamic Digital Banking
• Mambu
• Mohd Muazzam Mohamed
• Myles Bertrand
• Nadia Ismadi
• Pod