Bank Islam, through its new division, Centre of Digital Experience (CDX), has been actively laying the foundation to set up a fully digital bank by forming partnerships with Mambu, Experian and Pod.
Bank Islam has selected Mambu, a SaaS banking platform and Experian, a global information services company, as well as inked a Memorandum of Understanding (MoU) with a local fintech player, Pod, to develop new product offerings.
The engagement of Mambu allows the bank to configure Shariah-compliant banking products, while Experian will provide an eKYC solution for digital onboarding.
On the product front, CDX is in the midst of developing an alternative credit scoring model in collaboration with Pod. Together, CDX and Pod will explore solutions for customers who are generally overlooked by financial institutions, such as gig workers. This will be done by identifying alternative ways to assess credit worthiness of customers, beyond traditional means, enabling flexibility and inclusion in the formal banking system for this segment.
Bank Islam said that it is charging ahead as a value-based intermediary to create a platform-based solution so more people can have access to Shariah-compliant products which are based on risk-sharing and fairness.
The bank added that it believes that this partnership will serve as a precedent to encourage more fintech collaborations with financial institutions.
The CDX solution is expected to be out in the second quarter of 2021.
Mohd Muazzam Mohamed, Chief Executive Officer of Bank Islam said,
“Bank Islam via CDX has appointed prominent strategic partners, namely Mambu, Experian and Pod. These partnerships aim to address the existing market gap for the underserved segments and further catalyse our contribution to Malaysia’s digital economy.
With Bank Islam’s expertise in risk management and Shariah-related matters, coupled with Pod’s technology and Mambu’s agile SaaS banking platform, the partnership is able to introduce and promote Islamic financial solutions that cater to them.”
Myles Bertrand, Managing Director of Mambu APAC said,
“We are delighted that Bank Islam has chosen to build CDX’s greenfield operations on Mambu.
Internet and mobile banking are key to unlocking economic development and financial inclusion and we are proud to support Bank Islam in its bold mission to improve access to digital banking services in Malaysia. ”
Featured Image Credit: Penang Travel Tips
