Fintech driving future of Islamic banking, says industry expert

Digital transformation, AI, and open banking set to reshape Islamic finance landscape

PETALING JAYA, Malaysia (MNTV) — Financial technology (fintech) is playing a crucial role in modernizing Islamic banking as financial institutions increasingly embrace digital transformation to enhance their services and customer experiences.

Othman Abdullah, CEO of Silverlake Axis and head of Islamic banking at the company, emphasized the significant impact fintech innovations will have on the sector.

“Definitely, we will see more digital services emerging and transforming the way Islamic banks operate and interact with customers,” Othman said in an interview with SunBiz.

Several Islamic banks, particularly in Saudi Arabia, have already introduced digital banking capabilities, demonstrating the sector’s commitment to technological advancement.

Othman identified open banking as a key trend, allowing financial institutions to securely share customer data with third-party service providers to improve financial products and services.

“We will see much better user experience, good digital experience, leveraging all the latest technology,” he said, pointing to the growing role of artificial intelligence (AI) and machine learning in Islamic banking.

According to Othman, generative AI is poised to revolutionize various aspects of banking, from personalized financial recommendations to automated customer support.

“We will likely see these advancements implemented very soon, and I believe they will significantly enhance user experiences and efficiency,” he added.

With fintech continuing to reshape the global financial landscape, Islamic banks are expected to accelerate their digital adoption, ensuring they remain competitive and responsive to evolving customer needs.