After downturn, Islamic finance eyes profits, fintech: survey
By Bernardo Vizcaino
Islamic banks and insurers are focusing on profitability and new financial products as the industry shifts away from years of containing the adverse impact of low oil prices, an industry body said on Wednesday.
The findings from surveys by the Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI) show a strong focus on fintech and digital transformation with more than 70 percent of the 103 managers surveyed viewing these as highly or extremely important in strategic decisions.
Islamic banks are launching technology departments and forming joint ventures with fintech firms, with nearly 45 percent of respondents planning to increase or launch digital branches in coming years.
“The Islamic financial industry, which has seen little change since 1975, is suddenly undergoing enormous shifts that can be challenging for Islamic finance institutions to mitigate,” CIBAFI said.
Photo courtesy of TheUjulala.