Survey: Mobile Banking Top Fintech Adopted by Islamic Banks

Published June 18th, 2020 - 07:30 GMT
Survey: Mobile Banking Top Fintech Adopted by Islamic Banks
Mobile banking/payments received 64% approval rate, followed by Open banking (60%) and Machine Learning (ML) and Big Data (44%). (Shutterstock)

Mobile banking/payments ranked the top adopted technology by Islamic banks according a survey conducted by the General Council for Islamic Banks and Financial Institutions (CIBAFI).

Mobile banking/payments received 64% approval rate, followed by Open banking (60%) and Machine Learning (ML) and Big Data (44%), in the Global Islamic Bankers’ Survey (GIBS) Report with the theme “Beyond Digitalisation: Fintech and Customer Experience”.
 
CIBAFI, the global umbrella of Islamic financial institutions, launched the 5th series of the report online via webinar. Following four successful editions of the annual report, the fifth edition tackles a trending topic for the financial industry. The report reflects the views of more than 100 heads of Islamic banks from 35 countries regarding Fintech adoption and customer experience’s elevation.
 
The online launch of the report was inaugurated by welcoming remarks from Dr Abdelilah Belatik, Secretary General of CIBAFI, followed by a video presentation of the main findings of the GIBS 2020 Report.
 
Dr Belatik said: "Research is a crucial element for Islamic finance industry (IFI) development especially in these times of Covid-19 crisis. What makes CIBAFI GIBS Report unique is that it monitors Islamic bankers’ perspectives towards IFI and provides recommendations that are of high relevance to the industry’s needs. The report measures the optimism level of Islamic bankers; identifies the greatest risks they are facing; their approach on specific aspects of Islamic financing activities; and much more. We hope this survey report will provide a positive impact on the industry.”
 
The survey revealed the main strategic approaches to integrate Fintech solutions by Islamic banks. 61% of Islamic banking officials favour buying services from Fintech companies, followed by in-house development of Fintech applications (53%) then joint partnerships with Fintech ventures (51%). Adopting Fintech solutions brings increased operational efficiency and scale, enhanced customer experience and reduced operating expenses/cost, confirm the Islamic banking heads.
 
In order to improve customer experience, the report revealed the top practices that Islamic banks are currently focusing on; the product diversification was on the top with 87% approval rate, followed by employee training and monitoring (73%) and the use of social media and offering omni-channel banking (71%), the report said.
 
The online launch also witnessed a panel discussion that explored and shared different insights and experiences of the experts in the industry regarding the current practices and challenges faced for the adoption of financial technologies (Fintech) and elevating customer experience. The panellists included Peter Casey, Consultant, CIBAFI; Mohammed Kateeb, Group Chairman & Chief Executive Officer, Path Solutions; Hamid Rashid, Founder, Finterra Group; and Professor Chris WH Chan, Associate Dean (Asia), Ivey Business School.

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