Fintech platforms supplement Islamic financial capabilities

Canadian fintech association Goldmoney Inc (XAU.TO) has approved a gold-based financial products as sharia-compliant, a latest organisation to mix blockchain record to daub approach from Islamic investors.

The pierce illustrates how fintechs, companies that use innovative record to revamp banking services, are broadening their footprint to embody a core markets for Islamic financial in a Middle East and Southeast Asia.

Goldmoney provides financial products that are fully-backed by indifferent bullion and so tumble in line with superintendence released in Nov by a Bahrain-based Accounting and Auditing Organization for Islamic Financial Institutions.

The organisation began exploring sharia correspondence in Mar of final year, pronounced Alasdair Macleod, a firm’s conduct of research, adding a products will operation from resources government to a remittance market.

“We are already saying flourishing approach from Muslim-majority countries, and take a perspective that being sharia-compliant will extremely lift a form in this critical market.”

Goldmoney says it has some-more than 1.3 million users opposite 150 countries and administers $1.7 billion in customer assets.

Blockchain, a complement that initial emerged to promote digital banking bitcoin, involves a common electronic bill that allows all parties to lane information by a secure network, stealing a need for third-party verification.

Islamic financial follows eremite beliefs such as a anathema on gambling and undisguised speculation, though until now a zone has focused on normal sell banking services.

Fintech, however, could assistance Islamic banks turn some-more fit and scale adult their operations, according to a executive bank of Malaysia, that pronounced final year it was reviewing regulations to residence fintech firms.

Islamic banks in Malaysia reason around a fifth of sum resources and some are already concerned in fintech ventures.

In February, a organisation of 6 Islamic lenders launched an internet-based investment height to offer as a executive marketplace to financial tiny and medium-sized businesses.

Malaysia-based HelloGold has also launched a sharia-compliant online height that uses blockchain. This allows for some-more approach exchange and reduce costs, pronounced arch executive Robin Lee.

While it’s too early to establish fintech firms’ impact on financial stability, intensity regulations could assistance safeguard consumer protection, Lee added.

“Promoting foe is pivotal as fintechs are expected to aim under-served consumers and a unbanked and to expostulate cost to consumers down.”

HelloGold is now rolling out a product in Malaysia with skeleton to enter Indonesia, a Philippines and Thailand after this year, and China by 2019.

(Reporting by Bernardo Vizcaino; Editing by Shri Navaratnam)

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