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Bank Islam Signs MoU To Drive Digital Platform
Last update: 02/08/2017

KUALA LUMPUR, Aug†2 ( Bernama) -- Bank Islam Malaysia Bhd signed a memorandum of understanding (MOU) with Cognizant today to embark on innovative digital Islamic banking in its operations.

Bank Islam' s Chief Executive Officer, Khairul Kamaruddin, said digital technology has progressively entered†the financial market†with†growing demand for financial technology (fintech) in Islamic banking system†as well.

"The main goal of this collaboration is†to help the bank manage costs more effectively, enhance customer experience and be more efficient, operation-wise whereby the cost savings would inevitably be passed back to our customers," he told reporters at the signing ceremony here today.

He said the strategic partnership with Cognizant, a leading global business and technology consulting firm, would allow†both parties to explore and assess the possible areas to lay the digital banking platform foundation†across its†network.

"We would leverage on Cognizant's fintech solutions such as peer-to-peer financing, crowd funding, mobile payments, wealth management and remittance platform to develop innovative products and services at a competitive pricing.

"We expect the first product to be out by the second quarter of 2018. This product would†mostly be related to retail banking or small and medium business," said Khairul.

He said Bank Islam's current digital platform, with some 900,000 users, contributed less than five per cent to†its†non-fund based income.†

The bank looked†to expand revenue to 10†per cent targeting about two million users after the launch of the new products, he added.

At present, the bank's†digital platforms included TAP (Transact at Palm) Mobile banking-i Service, a phone banking service using†SMS, e-Donation terminals that enable cashless public donations and investment account platform, he said.

Khairul said Bank Islam was†not†allocating†any capital expenditure for the collaboration†but†opted for a low capital and high return business model.

He said†the bank would decide and finalise on the investment cost or†choose†profit sharing once the product was ready.

Meanwhile, Cognizant†Malaysia Business Leader, Effendi Azmi Hashim, said the group saw tremendous potential in Islamic banking, with Malaysia being the leader in that space and Bank Islam in the forefront.

He said to implement the bank's digitalisation, Cognizant would assess and assist Bank Islam identify areas to create business, operating and technology roadmap.

This would† help the bank engage†with customers and enhance customer†experience by providing personalised banking and transforming into a digitally-led bank of the future, he said.

-- BERNAMA

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Source: Bank Negara Malaysia

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