#Bank #Islam plans to #grow mobile #banking space

Bank Islam Malaysia Bhd is aiming to grow its mobile banking customer base from currently 900,000 users to two million by the year 2019. This is part of the bank’s strategic collaboration with US-based global business and technology consulting company Cognizant to develop fintech products within the network of Bank Islam’s. The banks digital banking segment accounts for less than 5% of its non-fund based income and the bank plans to increase this figure to 10%.
Bank Islam chief executive officer Khairul Kamarudin said the bank expected to roll out at least one fintech product related to retail banking by the second quarter of 2018. The bank planned to develop fintech products targeted at the retail banking and small and medium enterprise segments. “Together with Cognizant, we shall identify suitable fintech products that allow better customer engagement, to be submitted to Bank Negara’s regulatory sandbox,” he said.
Despite Bank Islam’s digitalisation efforts which included introducing a new digital division in its corporate structure, the bank would be maintaining its traditional banking to cater to the population. The bank will be able to accelerate small and medium enterprise banking by providing business solutions for operational and expansion needs. The bank will also be able to rapidly tap into the rural, underbanked segments and boost financial inclusion by overcoming cost and physical barriers. “We will need make investments when the fintech product is rolled out or go on a profit sharing basis with Cognizant.”
Meanwhile, Cognizant Malaysia business leader Effendi Azmi Hashim said that the company was interested in the Islamic banking space in the country. “We see Malaysia being a leader in this space, and see Bank Islam at the forefront,” said Effendi.