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Writer's pictureJessica Lee

Driving Ethical and Accessible Investment in Islamic Fintech

In the ever-evolving landscape of Islamic Fintech, Malaysia has emerged as a global leader, ranking 1st on the Global Islamic Fintech (GIFT) Index, as reported by the Global Islamic Fintech Report 2022. This success can be attributed to Malaysia's robust regulatory framework, supportive government policies, diverse talent pool, advanced infrastructure, and vibrant capital market. At the forefront of this financial revolution is Bank Islam, committed to embracing change and delivering the best to the nation.



One of the key developments in this thriving Islamic Fintech ecosystem is the introduction of the Islamic Capital Market Products and Services (ICMPS) Guidelines by the Securities Commission Malaysia at the close of 2022. These guidelines underline the potential of Islamic Fintech to enhance financial inclusion, social impact, and sustainability, serving as a pivotal springboard for new ICMPS offerings targeted at both new and sophisticated investors.


The world is witnessing a surge in the adoption of Islamic Fintech solutions, with digital Islamic banking, innovative peer-to-peer Islamic financing platforms, and technology-driven ethical investment tools gaining traction. In Malaysia, Capsphere has been noted as a player that has carved out niches by offering ethical and accessible investment options, highlighting the growing trend of catering to specific demographics, and promoting financial inclusion.



Capsphere has excelled by providing ethical and accessible investment opportunities, meeting the evolving needs of Islamic finance, and contributing to the shift towards sustainable and ethical finance, highlighting the potential of niche markets and financial inclusion.


In the panel discussion of “ INDUSTRY PANEL DISCUSSION - Promoting Financial Inclusion through digital banking and Innovative Tech Solutions”, our CEO and Founder, Yoon Jun Jie, underscored the importance of promoting collaboration between the public and private sectors as a potential catalyst for improving the accessibility and affordability of digital financial services.


Here are some of the other key discussions brought up during Day 1:

  • FinTech Innovations and Sustainable Development: Bridging with Ethical Principles from Islamic Finance

  • Exploring the Linkages between FinTech, Maqasid al-Shariah, and the Sustainable Development Goals (SDGs)

  • Leveraging fintech for Climate and Sustainability: Harnessing Technology-Enabled Data for Evidence-Based Decision Making

  • Islamic FinTech and Financial Empowerment for the Gig Workforce: Bridging the Gap through Innovative Solutions

  • Venture Capital Synergies in the Islamic FinTech Space: Fostering Innovation and Ethical Growth


However, challenges persist in this journey, including navigating the complex regulatory landscape, ensuring Shariah compliance, and safeguarding against cybersecurity threats. Nevertheless, the opportunities for Malaysia to become a global leader in ethical and sustainable finance are substantial.



We also noticed, Bank Islam's commitment to promoting financial literacy and education remains a cornerstone of their objectives, aimed at building informed and responsible consumers. By collaborating with like-minded thought leaders, Bank Islam is determined to navigate this dynamic landscape, embracing innovation in Islamic finance, and playing a pivotal role in building a more sustainable and inclusive future.


For Malaysia to solidify its position as a frontrunner in ethical and sustainable finance there needs to be a more open and inclusive banking system. The ongoing evolution of the sector unmistakably demonstrates that Islamic Fintech is not just reshaping the financial landscape but also propelling financial inclusion, sustainability, and ethical finance within the nation.



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