Baiza Bain had the opportunity to attend the recent World Islamic Economic Forum.
“It was a surreal experience as I had the opportunity to interact with a number of international delegates on areas that are outside my realm of Islamic finance. The various conversations I had certainly allowed me to have a different perspective on my area of practice. It made me realise that there are many ways in which Islamic finance could evolve to keep up with the rapidly changing times.
So, in what way has Islamic finance tried to keep up with the times? I remember having a conversation with an old friend who highlighted a unique initiative that is currently being worked on. This initiative was actually announced under Budget 2015. Called the Investment Account Platform (IAP), its aim is to diversify the roles that are currently being played by the Islamic financial institutions by way of adding on the responsibility of being an investment intermediary.
Traditionally, Islamic financial institutions, like their conventional counterparts, have played the role of credit intermediary — assessing the application of those seeking finance, ensuring that their credit meets the required standards and disbursing the funds. The financing is made from a pool of deposits that have been collected by these Islamic financial institutions."