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The Future of Islamic Economy & Finance within the Framework of the Digital Revolution - Key Elements & Impacts
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The Future of Islamic
Economy & Finance within
the Framework of the
Digital Revolution
- Key Elements & Impacts
DISCLAIMER
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This presentation is entirely the presenter’s personal opinions and views.
All information being referred to, facts used, inferences/assumptions and opinion expressed were publicly available sources and was true at the time it was extracted.
Any statement made by the presenter or material shown deemed offensive by the audience is purely coincidental and never meant to be racist, sexist, disrespectful and/or insensitive towards any individual or organisation.
This presentation is also neither to be relied upon as legal reference, investment advise nor statement of authority.
Please contact the presenter at [email protected] for further details.
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Untuk maklumat lanjut, silalah hubungi saya di [email protected].
3 ISLAMIC ECONOMY VALUATION
S o u r c e : https://haladinar.io/hdn/doc/report2018.pdf
USD 61 Billion
Cosmetics
USD 209 Billion
Media & Entertainment
USD 87 Billion
Pharmaceuticals
USD2.1 Trillion
Lifestyle
USD 2.4 Trillion
Finance
USD 1.3 Trillion
F&B
USD270 Billion
Clothing & Apparel
USD 177 Billion
Travel
USD 6.6 Trillion Global ~ USD88 Trillion
4QUICK ANALYSIS ON IDE
WEAKNESS
OPPORTUNITY
THREAT
STRENGTHTHE CURRENT STATE• Not well-connected• Low financial literacy• Poor due to capitalism
WAY FORWARD• Technology - facilitates
connectedness • Augmentation of existing
institutions (Baitulmal, Zakat, Waqf & Sadaqah) with innovative eco-systems (marketplace, ECF, P2P) and incumbent FIs
• NUMBERS: 1.8 Billion Muslims globally, majority in Asia & MENA
• MINDSET: Unable to collaborate effectively
Innovative approaches to MOBILIZE RESOURCES to the REAL ECONOMY for VALUE CREATION and
FAIR DISTRIBUTION to RELEVANT STAKEHOLDERS
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KEY BUILDING BLOCKSBridging Is lamic Digital Economy with Technology & Innovation
INFRASTRUCTURE• Legal framework
• Talent & knowledge
• Data federation
ECO-SYSTEM• Private Public Partnership: Govt + Private +
Households + Environment
• Collaborative mindset & behavior
Incumbents
Challengers
Flat structure
DIGITALISING • The 5-Key elements
Talent
Funding
Narrative
Tech
Biz model & regulation
START, SCALE & SUSTAIN• Initiating points: Data + Biz Model +
Mindset
• Scaling: Ambition + timing + resources
• Sustaining: Key issues + solutions
Strategy & Tactic
8STRATEGIC FOCUSKey Segments
DIGITAL FRAMEWORK• Collaborative mindset• Integrated federated data• Measurable approach• Eco-system approach
ENHACING HALAL VALUE CHAIN
• Connected eco-system &
multi-sectors
• Digitalized certification
• End-to-end services
• Data-driven to enable hyper-
localization
STRENGTHENING ISLAMIC FINANCE
• Crowdsourcing
o Zakato Waqafo Sadaqaho Baitulmal
• Banks & Takaful
• Capital market
• Social enterprises
EMPOWERING MSMEs & SE• Literacy programs
• 5-pillars E2E eco-system
o Capacityo Brandingo Fundingo Technologyo Business model
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RE-CONDITIONING
• Key aspects to consider -to change, improve, remove, introduce or frame
• Timeline for completion -Mindset, eco-system, regulatory framework
RISKS & OPPORTUNITIES
• Key Risks – systemic, inherent and material –need to be identified and addressed
• Opportunities – areas that has gap/issue that needs tech-driven solution
SPECIFIC APPROACH
• Targeted tactical approach specific for the gaps
• Human-centric solution infused with technology
QUICK WIN
• Immediate deployment of innovative solution to spur support and momentum for next bigger steps
• Scalable for bigger consumer-based, different industry and boundary.
TACTICAL IMPLEMENTATION
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Strengthening Islamic Finance
1 1
RE-CONDITIONING
RISKS & OPPORTUNITIES
SPECIFIC APPROACH
QUICK WIN
TACTICAL IMPLEMENTATIONISLAMIC FINANCE
Macro
• Eco-system convergence
• Collaborative mindset
• Facilitative –sandbox for experimentations
Micro
• Virtual community• Data-driven
Risks
• Systemic• Cyber security• Data breachOpportunities
• DA + ML + AI • Convergence
Macro
• Addressable market – B40, millennials, Muslims, MSMEs
• Democratize access
Micro
• Innovation based on human-centric design thinking
Immediate
• Marketplace• Data convergence -
ZWSB• Scalability plan
12MILESTONES ROADMAPISLAMIC FINANCE
• Collaborative mindset
• Eco-system (stakeholders - ZWSB, community – MSMEs, consumers)
• Centralized linked data
• Scalable & portable eco-systems
• Flat organization/institutional structure & hybridized processes
• E2E value chain – Capacity, Funding, Branding, Tech, Biz model – for eco-systems
• Cashless, paperless & automated eco-systems
• Interoperability between stakeholders’ capabilities and value-creation activities
• Real-time, multi-relevance solution/service points
2020-2021
2021-2023
2023-2030
INFRA & INSTITUTIONS
CONVERGENCE
NEW NORM
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Enhancing Halal Value Chain
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RE-CONDITIONING
RISKS & OPPORTUNITIES
SPECIFIC APPROACH
QUICK WIN
TACTICAL IMPLEMENTATIONENHANCING HALAL VALUE CHAIN
Macro
• Eco-systems convergence
• Collaborative mindset
Micro
• Virtual community
• Digitalised process
Risks
• Cyber security• Halal literacy Opportunities
• Data analytics & AI
• Decentralize or permissible eco-system
• Self-regulation & maintenance
Macro
• Addressable market –millennials, MSMEs
• Democratize access
• Principle-based digital eco-system
Micro
• Human-centric design thinking
Immediate
• F&B, modest fashion, entertainment, travel, social enterprises, media, pharma & cosmetic
• Scalability plan
15MILESTONESENHANCING HALAL VALUE CHAIN
• Collaborative mindset
• Centralized linked data
• Halal literacy – F&B, shadow finance, fashion, entertainment, travel, media, pharma & cosmetic
• Decentralized Halal E2E eco-system
• Real-data driving self-regulation value-chain
• Lifestyle Halal solutions
• Paperless & automated eco-systems – apply, verify, refer, maintain & GRC
• DA+ML+AI & multi-stakeholders eco-system
• Portable, cross-border application
2020-2021
2021-2022
2022-2030
INFRA & INSTITUTIONS
CONVERGENCE
NEW NORM
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Empowering MSMEs & Social Enterprises
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RE-CONDITIONING
RISKS & OPPORTUNITIES
SPECIFIC APPROACH
QUICK WIN
TACTICAL IMPLEMENTATIONEmpowering MSMEs & Social Enterprises
Macro
• Eco-systems convergence
• Collaborative mindset
Micro
• Virtual community
• Adopting the 5-pillars E2E approach
Risks
• Financial literacy• Halal literacy Opportunities
• Data analytics & AI
• Self-regulation & maintenance
• Augmented& automated business processes
Macro
• Identifying issue statements
• Beyond Muslims market
Micro
• Human-centric design thinking
• Digital adoption
Immediate
• F&B, modest fashion, entertainment, travel, social enterprises, media, pharma & cosmetic
• Scalability plan
18MILESTONESEmpowering MSMEs & Social Enterprises
• Collaborative mindset
• Implementing the 5-pillars E2E eco-system
• Halal literacy – F&B, shadow finance, fashion, entertainment, travel, media, pharma & cosmetic
• Real-time data self-regulation value-chain
• Being part of linked eco-systems – relevant stakeholders
• Paperless & automated business model
• AI-driven self-learning & multi-stakeholders eco-system
2020-2021
2021-2022
2022-2030
INFRA & INSTITUTIONS
CONVERGENCE
NEW NORM
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Digital Framework
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RE-CONDITIONING
RISKS & OPPORTUNITIES
SPECIFIC APPROACH
QUICK WIN
TACTICAL IMPLEMENTATIONDigital Framework
Macro
• Data-sharing by all stakeholders
• Collaborative mindset
Micro
• Virtual community
• Adopting the 5-pillars E2E
Risks
• Financial literacy• Halal literacy • Fintech literacyOpportunities
• Data analytics & AI
• Self-regulation & maintenance
• Augmented & automated processes
Macro
• Identifying issue statements
• Improve or pivot Micro
• Human-centric design thinking
• Digital adoption phases
Immediate
• Awareness, knowledge acquisition & empowerment
• Scalability plan
21MILESTONESDIGITAL FRAMEWORK
• Collaborative mindset
• Implementing the 5-pillars E2E eco-system
• Literacy – Financial, Halal & Fintech
• Real-time data from all stakeholders
• Being part of linked eco-systems – relevant stakeholders
• Paperless & automated business model
• AI-driven self-learning & multi-stakeholders eco-system
2020-2021
2021-2022
2022-2030
INFRA & INSTITUTIONS
CONVERGENCE
NEW NORM
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Managing Outcomes
23Managing Outcomes
INTENDED UNINTENDEDPO
SITI
VENE
GATI
VE
• Transparency• Lowering costs• Value-based, above monetary
EFFECTIVE, EFFICIENT
• Stakeholders need to re-learn, up-skill and continuously acquire knowledge: Risk of Slacking
• Too quick, too fast
RE-SKILL, UP-SKILL
• Technology allows wider & easier access• Compel learning & improved literacy• Access comes with awareness, knowledge
and collaborative mindset
DEMOCRATIZATION, K-BASE
• New risks: cyber related at multi-levels• New value definition and approach:
Intangible vs Tangible• High OpEx and reducing margin
IRRELEVANT
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ENHANCED LIFESTYLE VALUES VIA ISLAMIC DIGITAL ECONOMY
More touch-points of relevant financial
services
Value-add services due to real-time
data analytic and AI capability
Lifestyle solution as reciprocation from
data sharing
Access to other stakeholders beyond
FS eco-system
BASIC FINANCIAL SERVICES
Savings & LoansExpenses + ZSW
InvestmentTakaful
IN-KIND FINANCIAL SERVICESAnalytics
FS comparisonsOptimize FS solutions
LIFESTYLE SERVICES
Fashion TravelEducation F&B
SZWB e-marketplaceHealth, Pharma &
Cosmetic
LINK TO ECO-SYSTEMSAcquiring relevant
knowledgeImproving lifestyle
valueHalal, Tech eco-
systemsCareer,
entrepreneurship
SAMPLE USE CASE
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Q&A
