Fintech
Fintech
Fintech
AND FINANCE
Financial
Investment software
Foreign
Financing
Exchange
PENETRATION OF FinTech
Digital Platform Financial Saving and Investment Money Transfer Borrowings and
ecosystem Software and Payment financing
Marketplace Financial Equity or rewards Online foreign Borrowing using
platforms solutions crowd funding exchange peer-to-peer
software P2P platforms
Online investment Overseas
advice and investments remittances\
Online budgeting and
financial planning Non-banks to
Online stockbroking transfer money
Users
Users
ADVANTAGES USING FinTech
The principles of LASIC consist of; (i) Low profit margin,
where the company gains profit via mass customers (who
pay the services at lower cost), (ii) asset light (the providers
usually do not have high fixed assets), (iii) scalability (the
business model and technology have ability to be expanded
at lower cost, (iv) innovative (in terms of products and
operations) and (v) ease of compliance (this aspect refers to
less regulation requirement especially during the initial
start-up of the company).
ISLAMIC FINANCIAL INSTITUTIONS
ISLAMIC
FINANCIAL
INSTITUTIONS
BANKING NON-BANKING
FINANCIAL FINANCIAL
INSTITUTIONS INSTITUTIONS
DIFFERENT FUND
TAKAFUL INVESTMENT TABUNG HAJI,
TYPES OF MANAGEMENT
COMPANY COMPANY KWSP, ETC
BANKS COMPANY
TRADIONAL ISLAMIC BANKING INSTITUTIONS
The traditional banking institutions have certain characteristics such as physical branches in
different locations (where they can provide their services), higher human workforce, technology
usage and strict regulations.
Previous technology:
self-inquiry facilities, remote banking (all process getting information through websites),
Automated Teller Machines (ATMs) (involves all processes of money withdrawal at any times),
Cash Deposits Machines (CDMs), electronic banking, management information system for
internal users -to integrate internal information among different department of the banks (such
as ORACLES), smart cards and others (Ghaziri 1998).
Most of these facilities charged some fees to customers. These banking facilities are considered
as a basic technology that the banks usually have.
FinTech?
Why the cost
Need for Ensure there is Need for financing
return/hibah return on cost of and services
capital (after (profit on
deducting all financing and fees
Users /Customers
Banking Institution
Stakeholder ($$)
Banks Shareholders and
liabilities) on services to
cover the capital
and deposits)
WHAT BANK SHOULD DO?
These options are to
(i) remain status quo?
(ii) join venture with FinTech companies or?
(ii) open their own FinTech division or buy over FinTech companies?
MALAYSIAN CASE: ISLAMIC BANKS
Collaboration :
Investment Account Platform
Affin Islamic, Bank Muamalat, Bank Rakyat, Bank Islam, Maybank Islamic and BSN
Own Initiative:
Maybank (2015)
L337
mobile banking, payment, financing, asset management and financial inclusion
RHB (2015)
Startupbootcamp
Digital Wallet
Source: https://iaplatform.com/findInvestment
ISLAMIC BANKS: IAP
Source: https://iaplatform.com/findInvestment
ISLAMIC CAPITAL MARKET
Areas: crowdfunding and P2P online platforms, online and mobile trading platforms, social
trading platforms, high frequency trading program and robo advisors.
The Capital Market Services Act Bill 2015(CMSA Bill) was passed to cater for
the crowd funding activities (Hasan & Zainudin 2015). In addition, the SC has
also launched aFINity@SC, a FinTech community aimed at industry engagement
and more recently launched the P2P financing framework, which is aimed at
addressing the funding needs of small businesses.
IMPACT TO IBF
Outreach
and
inclusion
Customers
Experience Regulatory
Cyber Cyber
Security
security
Q&A