Oil Downturn Prompts Islamic Finance to Fintechs

A new survey by the Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI) showed that Islamic bankers and insurers are shifting towards profitability and new financial products, perhaps due to the adverse impact of low oil prices in recent years.

CIBAFI says that the Islamic financial industry, which has remained unchanged since 1975, is now undergoing an enormous shift, with banks now forming technology departments and venturing with fintech firms. Around 45% of respondents consisting of 103 financial managers said that they are planning to increase or launch digital branches in coming years, with more than 70% considering fintech and digital transformation to be of extreme importance to strategic decisions.

Source: Reuters