Sedania Innovator Bhd’s wholly-owned subsidiary Sedania As Salam Capital Sdn Bhd (SASC), has signed a memorandum of understanding (MoU) with a Turkish fintech company, Innova Yonetim Danismanlik Ve Bilisim Teknolojileri Ltd. Sti to develop a holistic Tawarruq-based portfolio within Turkish Islamic banking sectors.
Innova is a fintech company headquartered in Istanbul which specialises in digital transformation of companies in Turkey including supporting the country’s vision to transform İstanbul into an integrated financial hub in the Middle East.
In a statement today the company said the first rollout will focus on traditional commodities whilst covering digital commodities on the second phase.
“The tawarruq concept of financing and credit processing will be fully executed via a digital platform established by SASC,” the company noted.
It added SACC will thrive as key valuable fintech players in the region driven by growth prospects in Turkish Islamic banking assets that has recorded at 54% that surpassed the growth of conventional banks of 36% in 2020.
By 2025, industry experts have predicted that the Islamic banking segment will grow by 25%.
“We have completed many successful implementations of digital transformation and adoption with leading financial institutions and companies.
“The partnership with Innova represents a unique opportunity to grab significant market share by providing an innovative suite of Shariah compliant financial solutions in the region, and globally,” said SASC CEO, Khairul Nisa Ismail.
SASC has served over 70 financial institutions with more than RM60 billion loans processed to-date, projecting growth in the demand for digital solutions in Islamic financial services.
The new Innova Tawarruq platform is estimated to trade USD50 billion worth of commodities in 2022.