Deploying digital Islamic banking solutions in Malaysia

When the five digital banking licenses were announced in Malaysia, two of those licenses were allocated for digital Islamic banking. They are a consortium of AEON Financial Service Co Ltd, AEON Credit Service (M) Bhd, and MoneyLion Inc as well as a consortium led by KAF Investment Bank Sdn Bhd.


To enabled the deployment of digital Islamic banking solutions in Malaysia, Sedania Innovator Bhd’s fintech unit Sedania As Salam Capital (SASC) is deploying a full suite of digital banking solutions to the announced recipients of Malaysia’s digital banking licenses.


The consortium involves AEON Credit Service (M) Berhad. AEON currently uses SEDANIA As Salam’s Integrated Tawarruq Trading Solution for Islamic Financial Institutions.


Additionally, another client (which was not named by the group) is part of a consortium, which secured one of the three conventional digital banking licenses under the Financial Services Act 2013 will also be working with SASC. Through its partnership with SASC, the client currently offers a Shariah-compliant personal financing product to platform users of its super app.


According to Khairul Nisa Ismail, SASC CEO, Sedania is supporting their clients, be it in the conventional or Islamic space, to roll out market-ready solutions within the stipulated time.


“Additionally, we are very keen to explore the possibility of partnering with the other three new digital banking license holders. SEDANIA As Salam possesses the technological capabilities and experience to complement efforts aimed at establishing their respective digital banking infrastructures,” commented Nisa.


She also pointed out that Sedania has been powering more than 80 clients with their patented API-based Digital Commodities Platform that enables seamless Straight Through Processing capabilities for Islamic Consumer Retail Products.


Nisa added that SASC’s unique Digital Akad sets them apart from other peers in the market and the region as it helps Islamic Banking sectors to connect with customers for seamless Akad processes and subsequently, enables faster turnaround times for financing disbursements.


“Our latest agile and composable ecosystem resonates well with Financial Services Institutions (FSIs) that are moving fast towards digital banking readiness. In the last 12 months, SASC has been continuously working closely with our key partners who were contending for the digital banking licenses by better integrating our technological platforms with their respective banking solutions,” Nisa elaborates.


Among the notable tech partners that SASC has partnered with include internationally recognized technology players including CREALOGIX and MAMBU, both of which are already operating seamlessly using digital solutions within these new types of digital banking environments.


Since the awarding of the licenses, the five digital banks, both conventional and Islamic, are now in their testing phases and are expected to release digital banking solutions within the next two years.


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