Spoke on digitization of Islamic banking as a fuel for global growth at the 11th Kuala Lumpur Islamic Finance Forum on the 12th of November 2014. Appending my slides here.

1. the innovation frontier in
ISLAMIC BANKING
Raja Teh Maimunah
Chief Executive Officer
Hong Leong Islamic Bank
Chief Operating Officer
Digital Innovation & Transactional Banking
Hong Leong Bank

2. First, a little bit of HISTORY

3. The MUSLIM empire
was oncSe YNOMYMOUS
withINNOVATION
COFFEE
15TH CENTURY
YEMEN/ETHIOPIA
ALGEBRA
750-850AD
PERSIA/IRAQ
UNIVERSITIES
859AD
MOROCCO
CAMERAS
11TH CENTURY
CAIRO

4. … then we stayed dormant,
and of late, the western world picked up where we left off…
NUCLEAR
POWER
1942
ENRICO FERMI
(ITALY)
COMPUTER
1833-71
CHARLES BABBAGE
(ENGLAND)
AUTOMOBILE
1769
NICOLAS-JOSEPH
CUGNOT
(FRANCE)
AIRPLANE
1903
WRIGHT BROTHERS
(USA)
COFFEE
BREWER
1925
GERHARD MARCKS
(GERMANY)

5. With Islamic Finance, we’re back in the innovative front
… and the world believes it
"Islamic finance has proven successful
in poverty alleviation and promoting
sustainable growth in many countries,
including the United States, and it is very
relevant in our country (India) where 20
million people are starving“
V.R. Krishna Iyer
India Supreme Court Judge
“Islam is not only concerned with the
relationship between man and God but it is also
a system of beliefs, justice, equity,
fairness and morality, these being the
values that underpin the entire Islamic way of
life, which is, not surprisingly, the basis for the
creation of Islamic financial products.”
Brian Kettel
Renowned Author

6. 17.6%growth rate
in the last 4
years
1.7trillion
total value of Islamic
banking assets
78%contributed by
QISMUT countries
105countries have
Islamic FIs
38millioncustomers
worldwide

7. Why should Islamic FIs turn to DIGITAL BANKING

8. … growing in
customer base -
incurs costs to grow
human capital
… shouldering
additional process
steps before
products are
introduced to
consumers
… lower in cross-selling
despite
having same data
with conventional
ISLAMIC
BANKS
are…

9. Countries with
Muslim
majority
population
contribute
8%
to the world’s
GDP
32%
of their population
comprise of
under 15-year
olds
Becoming
more affluent in
nascent
lifestyles –
tourism, fashion,
cosmetics etc.
($13.7b spent by
Muslim tourists last year)
MARKET
READIN
ESS
Already armed
with the latest
tech
gadgetries as
part of their
daily rituals

10. What we’re already doing at Hong Leong Bank

11. Peer-to-peer Mobile Money
Transfer function that allows HLB
Connect users to send money to a
phone number, no sharing of
account details necessary.
Merchant payment function where
customers can pay for their
purchases using their Connect
Mobile app.
Connect Mobile app users can
generate their own collection code
on their mobile phones to
withdraw cash from ATMs without
using their ATM cards

13. …and the numbers are encouraging!

14. terima kasih
thank you