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Blue ocean: The changing landscape of Islamic finance

Blog postby Miljan Stamenkovic
1 min read

Digitisation is helping banks throughout the GCC reach new customers and provide them with products that are aligned with their ethical codes. These digital challengers have a unique opportunity to operate like modern, platform-based tech companies.

Why is this important? Digital banks have a competitive advantage. Their IT is typically organised around agile platforms, run by lean tech teams. Components are managed individually and can be swapped in and out. When put together, they form the backbone of a company’s technology capability. This is why digital banks can get their products and services to market 10x faster than traditional banks that still run on legacy infrastructure.

Launching digital banking platforms offers islamic financial institutions the chance to transform – there are no boundaries in looking at how to rethink a business model and employ cloud-based solutions and API-driven architectures to create an open banking ecosystem to grow business. Banks in the Middle East can enjoy agility and speed if they can unburden themselves from legacy technology.

Banks throughout the Middle East, including in Bahrain, UAE, Qatar, and Saudi Arabia, have been working on their respective digital transformation strategies. This next generation of financial services is critical to driving customer growth among younger consumers, who will contribute ~75% of banking revenue in the Middle East (Alvarez & Marsal, 2019).

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Sharia-compliant banks are stepping up digital investments to serve this key demographic. Islamic banks should tap into, and address, the demands of this tech-savvy customer base for greater transparency, highly-personalised products and seamless experiences.

To learn more about the potential that digital banking offers throughout the Middle East, download our ebook 'The changing landscape of Islamic finance'.

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Miljan Stamenkovic

Miljan Stamenkovic is General Manager of MENA for Mambu. He has a rich history in helping financial services providers implement digital solutions for their business and their customers. With 15 years of experience in banking, financial services, and insurance technology, he brings an in-depth perspective in the areas of digital banking, customer experience, and omni-channel delivery.

Miljan Stamenkovic