MALAYSIA is gearing up to be the global leader in Islamic FinTech, with these companies paving the way forward.
According to Dinar Standard's Global Islamic FinTech Report 2021, the Islamic FinTechmarket is projected to grow to US$128 billion (RM536 billion) by 2025.
In 2020, the Islamic FinTech transaction volume within OIC (Organisation of Islamic Cooperation) countries is estimated at US$49 billion. The halal economy is currently worth US$3.1 trillion and is projected to be worth US$5 trillion by 2030. At the heart of this explosive growth is Malaysia, which ranks first in terms of market maturity and is among the top five Islamic FinTech markets based on transaction volume.
Still, as the country seeks to be the world leader in Islamic FinTech, it needs to look at bridging Islamic Finance gaps globally. From 9 to 15 Jan 9 to 15, 2022, Malaysia Digital Economy Corporation (MDEC), Malaysia's lead digital economy agency, will be leading a delegation of 20 Malaysian companies to Expo 2020 Dubai as part of the Malaysia Digital Economy week.
MDEC said these include companies from Malaysia's thriving Islamic fintech industry.
"Islamic Finance and FinTech are seen as a crucial pillar within the Twelfth Malaysia Plan (12MP) not just in driving a progressive, inclusive, and sustainable society, but towards expanding the country's export market. Expo 2020 Dubai will serve as an important platform for these local Islamic fintech innovators to reach a global market in line with MDEC's vision for Malaysia to be an Islamic fintech hub," said MDEC CEO Mahadhir Aziz.
Here are the Malaysian Islamic FinTech players set to break into the global stage:
microLEAP
microLEAP is an Islamic and Conventional Peer-to-Peer (P2P) microfinancing platform regulated by the Securities Commission of Malaysia (SC). The platform serves as an alternative financing tool that allows issuers to obtain financing from investors without having to go through a financial institution. They are the first Malaysian P2P operator that offers both Islamic and Conventional financing on the same platform. microLEAP experienced tremendous growth in a short period of time. After going live with their Islamic P2P investments in April 2020, their funded notes grew by over 1,000 per cent in a space of four to five months. As of April 2021, the platform has successfully help fund over RM2 million across 71 funding notes – 97 per cent of which are Islamic.
TheNoor
Created and launched by actress and successful entrepreneur Noor Neelofa Mohd Noor, TheNoor (meaning 'Light' in Arabic) is described as the 'Ultimate Muslim Lifestyle App'. The app allows users to keep track of prayer times and listen to verses from the Quran. On top of features such as a Qiblah finder with real-time detection, the app also functions as an eWallet. Since its release in 2020, TheNoor has already garnered five million users. More features are en route, include more languages for its voice over translations of the Quran. More recently, it partnered with Tabung Haji Travel & Services Sdn Bhd to offer Syariah-compliant travel and holiday services. The collaboration connects businesses to the global halal tourism industry, offering umrah and haj packages through the app.
Global Sadaqah
Global Sadaqah is an award-winning zakat and waqf management platform working together with stakeholders from religious bodies and foundations to banks, corporates, and the public to increase the "efficiency, sustainability, and impact of social finance." The Islamic crowdfunding platform is open to the public and corporate clients to contribute to zakat or waqf campaigns, which are verified and approved by their in-house Shariah team.
Wahed Technologies
Wahed Technologies is an Islamic digital investment management company which provides Malaysians access to Shariah-compliant robo-advisory portfolio that is transparent and impartial. They are backed by leading investors and advisors bringing ethical and halal financial management to communities globally. The platform currently serves more than 200,000 clients across more than 100 customer countries.