JULY Everex plans ICO to build Ethereum-powered Shariah 2017 compliant fi nancial capabilities A blockchain start-up has so far raised Everex is on a mission: it wants to enable US$3 million from private investors and will the underbanked (some two billion individuals open its ICO to the public this month in the globally) of the developing world to access hope of raising it to US$15 million to develop aff ordable fi nancial services anywhere in the microfi nancing services palatable to Muslims world. Central to this mission are distributed ledger and non-Muslims alike using Ethereum technology, mobile infrastructures and machine technology and artifi cial intelligence (AI). learning software. – page 2

Merging business and charity: MercyCrowd to deliver greater social impact as business grows

MercyCrowd, a UK-based real estate equity Going global crowdfunding platform, is weighing between With a footprint in the UK and the UAE, the and as its gateway into the fi ntech start-up is looking at setting up shop in page 1 Asian Shariah compliant and ethical investment over the next 12 months, CEO and founder Anouar • Everex plans ICO to build Ethereum- powered Shariah compliant fi nancial space, as part of its international expansion Adham tells IFN Fintech. – page 4 capabilities strategy. • Merging business and charity: MercyCrowd to deliver greater social impact as business grows • Asia welcomes maiden Islamic robo- advisor and looks forward to fi rst Shariah compliant artifi cial neural Asia welcomes maiden Islamic robo-advisor and looks network page 3 forward to fi rst Shariah compliant artifi cial neural network • Malaysia forms international fi ntech partnership A conventional investment manager the Labuan Financial Services Authority instead of page 6 gained fi rst-mover advantage in the Islamic Securities Commission Malaysia (SC), the group is • Islamic non-bank fi nancial fi nance space by launching Asia’s fi rst Shariah nonetheless considering securing the necessary institutions driving business with compliant robo-advisor and has begun work on license from the SC as a means to enter the ringgit data analytics developing an artifi cial neural network trading space. • Islamic bank fi rst to adopt Visa Checkout service algorithm for the Islamic markets. “We are in discussions with our internal board page 7 Farringdon Group has offi cially rolled out its about applying for the SC license before the end of • Dubai backs Shariah compliant payment service initiative Shariah compliant automated digital investment the year – but we cannot guarantee it,” said Stuart • Alizz upgrades digital banking platform, Algebra, and is confi dent of onboarding Yeomans, CEO of Farringdon Group. “Honestly service with overhauled app a local partner to tap the domestic ringgit market speaking, if we can partner up with good quality page 8 before the end of the third quarter. companies here, there will be no need – we will • Samsung pays the UAE a visit, and give them the engine to use.” – page 5 is here to stay Restricted from dealing in local currency page 9 investments as Farringdon is regulated off shore by • Rise of the robots: Al Rajhi turns to RPA to slash fraud risk and enhance effi ciency • CompareAsiaGroup seals US$50 million Series B funding page 10 • IDB to harness the power of Islamic fi ntech innovation with pioneering Fintech Islamic Finance Challenge page 11 SECURITIESITIES • Dubai ups Islamic fi ntech game; includes Shariah banks into accelerator program page 12 • Africa looks to Abu Dhabi to nurture nascent Islamic fi ntech community www.IFNFinTech.com www.IFNFinTech.com REPORTS

Everex plans ICO to build Ethereum-powered Shariah compliant fi nancial capabilities (continued from page 1)

But using Ethereum and AI to address the issue of risks undertaken by microfi nanciers which is why the start- fi nancial inclusion is only a small part of the overall equation, up is now fundraising. Jean-Baptiste Decorzent, Everex Global’s director of inclusive fi nance and strategic partnerships, tells IFN Fintech. “The Previously raising US$3 million from 600 private issues our initiative is addressing are complex, but not investors in seven days, Everex will launch its ICO on the 24th complicated. We do believe this complexity could only be June (capped at US$15 million). Proceeds will be used to addressed by building strong partnerships.” develop AI, a crucial element in optimizing microfi nance as most clients would not have suffi cient fi nancial data or credit Incorporated last year, Everex initially focused on history. remittance services using its Cryptocash, which is not a new digital currency but rather a digitization of any existing “Through AI, individuals would be able to prove their national currency on the Ethereum blockchain. The idea is line of credit through traditional fi nancial institutions and relatively new and Everex was among the fi rst to utilize such AI would also help build the risk profi le of borrowers,” a concept (it was also one of the fi rst to build applications Decorzent explained. on Ethereum): Singapore only recently completed the fi rst phase in tokenizing its currency. To close its ICO in August, development will commence soon after with a view to conducting its fi rst pilot project “About 18 months ago, the blockchain landscape within six months. “Microloans are more complex as was completely diff erent and a year ago, regulations on compared to remittance and realistically speaking, we this hardly existed,” shared Decorzent. “We knew we were should be able to launch the pilot project in February 2018,” walking on eggshells because nobody had done it, but we said Decorzent. needed to, and did it anyways.” Empowering women Designing the technology with migrant workers – who In addition to microfi nance, the company is also are generally unbanked – in mind, it was important to Everex currently working on an initiative to implement blockchain to make the transfer of money cheaper, faster and more for livelihood and cash-based transfer (CBT), more secure. Everex could not convince any regulators to come specifi cally about facilitating women to access seed and on board a year ago, and so, the start-up invested its own capital for their ventures through ‘women entrepreneur money into building the system and in September 2016, impact funds’. These funds will allow women to access ran the fi rst pilot between and Myanmar which seed (grants) and capital (investments) for their ventures proved to be successful, transferring an aggregate amount in emerging and frontier markets, empowering women to of THB850,000 (US$24,975) for hundreds of migrant workers start/develop/re-start their business by facilitating them to from Thailand to Myanmar. By using blockchain, the fi rm access fi nancing – using Cryptocash. was able to slash the service fee by three times to 3% and decrease the transfer time signifi cantly. “The plan is to establish a multi-stakeholders open- source blockchain Ethereum CBT and access to capital For its groundbreaking work, the start-up was platform for multilateral organizations, public and recognized for its innovation at the UN in New York private donor agencies, implementing agencies, fi nancial recently. It has also been invited by the Bank of Bangkok to institutions and targeted population,” Decorzent expounded. participate in a fi ntech program. Shariah compliance Microcredit And of course, as an advocate for fi nancial inclusion, Now, the fi rm is focusing on microcredit. “Microfi nance making all its off erings Shariah compliant is key. The fi rm has institutions worldwide charge an average 35% interest rates sought advice from an Islamic bank on its compliance. on loans and in some cases it can go up to 50% - that to me is robbery. We want to drop that to 10%,” Decorzent said. He “Everex intends to establish and maintain Shariah is, however, cognizant of the high cost incurred and great compliance during operations with Islamic customers.

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Among the methods slated to be used in compliance are Changing future fl at-rate lending smart contracts which align with [the] At the moment, the initiatives are still under the prevention of Riba Qard, growth due to interest outside the umbrella of Everex; however, it is likely that they would be scope of an agreement and Riba Jahiliyyah, debt growth parked under a foundation due to the nature of the work in response to defaulting on payments,” according to the which involves partnership with governments, private start-up. foundations, international organizations and multilateral development agencies such as the UN and the International Securing an offi cial Shariah certifi cation is “most Red Cross. defi nitely” in Everex’s future plan. “We are not specialists in Islamic fi nance which is why we want to engage with “Financial exclusion is a big challenge and nobody can industry experts and seek guidance on which is the best way do it alone. If we fail, we really do hope somebody else will forward.” be successful,” shared Decorzent.

Malaysia forms international fi ntech partnership

On a partnership spree, Australia has now sealed Should both parties honor the terms of agreement set a deal with one of the most ardent supporters of out in June, digital fi nance businesses from the respective Islamic fi ntech, opening the pathway for Malaysian and jurisdictions have the opportunity to build scale and expand Australian entities to be involved in cross-border projects. internationally. This also means that Shariah fi ntech fi rms in Malaysia would have greater access to the fl edgling Australian Just as it has done with its colleagues in and Islamic fi nance market. At the moment, the Australian Muslim Japan recently, the Australian Securities and Investments minority is underserved by local fi nancial institutions, and Commission (ASIC) has now partnered with Securities there have been little developments on the Shariah compliant Commission Malaysia (SC) allowing the two regulators to fi ntech side. This could potentially get the ball rolling. leverage off each other’s fi ntech expertise and knowledge but more importantly, facilitate referrals of innovative businesses seeking to operate in one another’s jurisdiction. The latter also includes exploring potential joint innovation projects relating to the application of new technologies.

“International cooperation on fi ntech is essential,” Gred Medcraft, the chairman of ASIC, emphasized – the gravitas of the message was further underscored by real action by the Australian regulator which, over the last few months, has been strengthening its fi ntech presence in Asia Pacifi c by building bridges with multiple regional neighbors. “This“This agreementagreement will help locallocal businessesbusinesse groww beyondbeyond our boborders,s, andand improve our understandingunderstandi ofof fi ntech in the region.”region.” Calling it an “important milestone” to Malaysia’s digital fi nancena and fi ntech ambitions, SC Chairman Ranjit Ajit Singh nonethelessnone noted: “Even as we continue to enable new forms of innovation in capital markets, we must not lose sight of the need to manage digital risks, by Ranjit Ajit taking a strategic approach to risk management, Greg Medcraft Singh recruiting digital talent and improving IT architectures.”

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Merging business and charity: MercyCrowd to deliver greater social impact as business grows (continued from page 1)

Positioning itself as an ethical platform, it was important to Anouar, who has been an Islamic fi nance professional throughout his career, for MercyCrowd to be aligned with Shariah principles. All investments via the platform are conducted in an interest-free environment through a low-risk approach. And equally signifi cant (if not more), the platform facilitates socially responsible projects.

“From the very beginning, we have always wanted “A percentage of our profi ts goes to charity,” Anouar MercyCrowd to be a truly international platform, and shares. “We partner with local associations where our assets with offi ces in London and Dubai, we are the only Shariah are based, and investors also have an option to donate a compliant platform around that is as international as it can portion of their returns to assisting these charities – which are get,” Anouar believes. “And we expect to be present in Asia dedicated toward addressing the issue of homelessness in over the next year – the question is whether it is Malaysia or their community, in line with the residential property nature Singapore.” of our business.”

Incorporated about a year ago, the young start-up only To better facilitate donations on its platform, the went live in May this year – spending the fi rst few months crowdfunder designed a separate solution, Mercy Donations, building its IT capabilities, forming its team and identifying which focuses exclusively on promoting local and sustainable and sourcing for quality assets. projects. Another Shariah aspect vital to the platform is the democratization of investments. “We wanted to do something unique and not be a mere copycat so we spent a lot of time trying to integrate unique features into our platform – being international is the investors also have an option to underlying theme,” said Anouar. donate a portion of their returns to assisting these charities This element of being global is refl ected across its business: apart from physical offi ce presence, MercyCrowd’s assets are also multinational in fl avor – it currently has assets from the UK and France on its platform. And the platform allows for transactions to be executed in more than one “The minimum ticket to invest via MercyCrowd is GBP50 currency: the UK pound and the euro, with a view of including (US$64.33). To create an international real estate portfolio US dollars in the next few weeks. for just GBP50 is something no other Shariah compliant platforms are able to do yet,” says Anouar, whose Islamic Rigorous regulation fi nance credentials include stints in Shariah banking and asset As expected, the international business model faces management in the Middle East, Asia and Europe. signifi cant regulatory hurdles: for every new market it forays into, MercyCrowd would need to be separately regulated by And while the fi rm has yet to secure an offi cial Shariah that specifi c jurisdiction. stamp for its platform, to Anouar there is “no question” about the Shariah compliance of MercyCrowd, which off ers “This is one of the reason why we began in the UK and debt-free (hence no Riba) low-risk investments in an asset made it a priority to secure a license from the Financial class much favored by Islamic investors, promotes fi nancial Conduct Authority,” Anouar explains. “By being regulated by inclusion and social equity as well as fosters the common the most stringent regulator around, it should ease our entry good. into other countries.” “What’s important to us is that we create social impact Shariah spirit in every community we are in as we continue to grow as a business,” says Anouar.

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Asia welcomes maiden Islamic robo-advisor and looks forward to fi rst Shariah compliant artifi cial neural network (continued from page 1)

Making it aff ordable relatively expensive, Farringdon does intend to lower it at some About a year in the making, the main idea behind Algebra point. was to provide compelling investment returns at a signifi cantly lower cost to investors. While US-based Wahed Invest, the fi rst “We want to get to a point where a farmer in India can invest Islamic robo-advisor worldwide, keeps costs low by investing in as little as US$10 because we think that’s where the market needs cost-eff ective exchange-traded funds (ETFs), Algebra maintains to be and really needs,” said Young. price competitiveness (total expense ratio of 0.85% as opposed to the average 3-5%) by controlling expenses. India and – the two largest Muslim nations globally – are the two main focus for Algebra at the moment, with “As everything from start to end is done in-house, we have the Middle East on the cards. The fi rm is also aggressively pushing the advantage when it comes to pricing our product,” Yeomans to white-label its platform to Malaysian fi nancial institutions: it is told IFN Fintech. “However, I think the question is not how we currently in talks with four players and is confi dent of onboarding are keeping costs low, but how much other asset managers are at least one by October. actually making from each investment.” The entire back offi ce and operations of Algebra, certifi ed Shariah compliant by Amanie ANN and VMF Advisors, will be managed in Labuan. For Yeomans and Young, Algebra is currently at about 70% of where it should be. The company is currently working on new Investment strategy technologies to enhance the robo-advisor. One of it is a Shariah Martin Young, CEO of Singapore-based Farringdon Asset compliant artifi cial neural network (ANN) to forecast the fi nancial Management, who was greatly involved in the development of markets and design optimum Islamic investing strategies, Algebra, shared: “We actually intended to follow a very similar potentially a world’s fi rst, although it may be a while before this model in the US but we were disappointed in the availability of is rolled out as the company is still in the very early stages of investments in Southeast Asia as compared to the US and Europe. development. This is two-fold: one, the quality of investment available and two, the high charge involved.” Designed to emulate certain signifi cant attributes in the functioning of the human brain, ANN is a trainable algorithm with Depending on the risk profi le of individual investors, Algebra the ability to learn from observing data sets and is used as a tool will draw up an investment portfolio built using equity as well as to predict fi nancial time series and most cost-eff ective or ideal fi xed income instruments such as Sukuk and ETFs to manufacture solutions based on historical information. a risk-weighted portfolio. For the equity portion, a smart beta strategy outperforming the Shariah S&P 500 index at a lower level In addition to that, the group has revealed a new of volatility is employed. At the moment, the investment universe investment asset class it termed as ‘virtual mutual funds’ (VMF), of Algebra stands at 125. the technology of which it claims cuts out numerous layers of fees and allows the investors to directly hold securities while “We have built the Shariah version of this platform and have maintaining liquidity and performance. also incorporated a non-Shariah option. Hence, whatever your investment profi le is, we can mold a portfolio around your “With VMF, we can set an algorithm to build a fund and blend investment principals and appetite for risk,” said Yeomans.omans. it with fi xxed income and Sukuk, allowing us to virtually roll into anyany mmarketa in Asia without worrying about currency,” Young Unlike Wahed, which slashed the required minimumnimum explained.explai “What we’ve observed is that Asian investors are investment from US$7,500 to US$500, Farringdon onon moremore aand more happy to invest in domestic currency and this the other hand increased the minimum investmentnt is where we will go over the next 12-18 months.” needed from US$200 (when it fi rst announced plansns to launch Algebra in November 2016) to US$4,000 Over the next 18 months, Farringdon also for one-time investment or US$325 per month. expects to launch a face-matching algorithm to Martin increase the security robustness of its platform. White label the way to go Young Recognizing that the entry point is

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Islamic non-bank fi nancial institutions driving business with data analytics

A Saudi Islamic leasing company will apply objectives,” explained Zaid Kamhawi, CEO at Qarar, who analytical modeling across its business to enhance its emphasized that this is particularly important at a time decision-making process in the hopes of optimizing cost when many Saudi fi nanciers are moving toward process effi ciency, maximizing revenues and managing risks automation and operational effi ciency. eff ectively as earnings take a dive. Al Yusr’s adoption of a data-driven approach comes on Al Yusr Leasing & Financing has engaged Dubai-based the back of weaker earning capabilities: in 2016, the Shariah Qarar to overhaul its existing customer credit evaluation non-bank fi nancial institution experienced a painful drop of process into an effi cient best practice risk decision-making over 60% in net income from SAR222.79 million (US$59.37 process, driven by an advisory and data analytics program. million) in 2015 to SAR74.88 million (US$19.96 million) 12 Using data, Qarar will implement analytical modeling and months later. recommend actions across multiple customer management decisiondecisio areas, particularly proactive The fi nance company said it hopes the new initiative customercusto cross and up-sell areas as would enable it to develop its growth plans and align its wellwel as enhanced data-driven recovery decision-making policies in a “progressive and sustainable” strategies.stra manner.

“We will be working together The leasing fi rm joins another Islamic fi nance provider, throughthro a ‘Risk Program Partner Bidaya Home Finance, in integrating a more systematic ApApproach’ to ensure that an effi cient and analytical approach to business. Bidaya, backed by the origination process is successfully Islamic Corporation for the Development of the Private implemented and that Al Yusr Sector and the Public Investment Fund among others, earlier Zaid Kamhawi achieves maximum effi ciency in May partnered with Qarar for its best practice credit risk and fulfi ls its credit management advisory and analytical services.

Islamic bank fi rst to adopt Visa Checkout service

The largest Shariah bank in Qatar successfully unnecessary) line of security and personal detail questions. streamlined its cashless payment processes, signifi cantly From 44 fi elds, QIB has managed to slash the number reducing transaction time while simultaneously boosting of required fi elds to be completed by customers when its security features. performing an online payment, by over 95% to a mere two. This is done by, among others, eliminating the need for Qatar Islamic Bank (QIB) is now implementing Visa specifi c card details – these are replaced by a unique user ID Checkout – a new payment option for online purchases and password. and transactions available to its cardholders – in a bid to strengthen its hold on e-commerce-savvy customers. Never been done before in Qatar,ar, QIB is the fi rst to have adopted this “Online shopping has been growing signifi cantly in the solution which utilizes a set of proprietyriety last years, and we are aware that customer experience has and advancement management toolsols become central to e-commerce and the shift of consumption to prevent fraud – an example of thee to mobile made us think about a new and improved payment tools is 3D Secure Technology, part experience,” explained D Anand, the general manager of QIB’s of a service providing a password- personal banking group. protected authentication system to confi rm the cardholder’s The new payment service overcomes a major issue identity every time the card is D Anand faced by online shoppers: the seemingly unending (and used online.

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Dubai backs Shariah compliant payment service initiative

A global provider of digital payment services is East and North Africa region in general – and the Gulf region, entering the UAE market with services agreeable to Shariah- in particular,” Samer Soliman, the executive vice-president of conscious customers. products and innovation at Network International, said. “Our goal is not only to consolidate the culture of digital money but Quisk Middle East has won the support of the Smart Dubai to facilitate payments and all other payment services as well.” Government Establishment (SDG) in developing a suite of smart payment solutions allowing individuals to manage, save and Quisk accounts can be adapted to connect to any source of make payments using phone numbers and secured PINs rather funds – other bank accounts, credit cards or digital wallets – and than card or bank account numbers. The service, also open to can securely complete payments without requiring the use of those with no bank accounts in the UAE, allows for a range of a smartphone application, data connection, mobile minutes transactions including retail purchases, government services or a charge. The initiative is backed by the Dubai government and bill payments as well as ATM withdrawals, e-commerce as part of its ambition of transforming itself into a smart city transfers and remittances. where residents are able to conduct daily tasks as seamlessly as possible with the help of technology and digital solutions. To be implemented at all of Network International’s points of sasale across the Emirates later in the “Launching the trial version of this new generation of smart year,year, IFN Fintech has learned that the service payment solutions allows us to add another dimension to the isis in cocompliancem with Shariah laws and is smart payment experience, and brings us even closer to our restrictedrestricte for some merchants such as goal of making Dubai the happiest city in the world,” explained datingdating services outlets and those involved Wesam Lootah, CEO of SDG. “One of the key features setting this in gambling.g platform apart from other similar products is its unprecedented fl exibility: users are free to use any device to avail the service. “The new payment system This path-breaking development opens the door for an entirely Samer Soliman will help millions of fi nancial new concept of smart banking transactions.” account holders in the Middle

Alizz upgrades digital banking service with overhauled app

An Omani Islamic bank is hoping to capture the technologically advanced banking solutions, our wide younger population by redesigning its internet banking range of cutting-edge digital banking solutions enable our platform and mobile banking application. customers to benefi t from more convenient and secure self-service channels, 24 hours a day, seven days a week,” Alizz Islamic Bank, one of the two fully-fl edged Shariah commented Sadiq Al Lawati, the head of digital and card banks in Oman, has unveiled a new mobile banking app and business at Alizz Islamic. online banking interface, enhancing both the design and functionality. The bank has incorporated a QR Code login system and expanded The bank has incorporated a QR Code login system and expanded the range of transactions its mobile app the range of transactions its mobile can execute, including fund transfers and utilityy app can execute bill payments. The bilingual app (Arabic and English) is also 3D touch-enabled and off ers in-app notifi cations for new transactions and The enhanced digital channels are but one of the payment reminders – said to be the fi rst mobile various initiatives by the bank to improve its reach by banking platform to do so in the Sultanate. upgrading its digital systems as well as IT hardware, including interactive teller machines – which utilize video- “With an increasingly young based technology to conduct real-time transactions – population in Oman who prefer more Sadiq Al Lawati introduced last year.

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Samsung pays the UAE a visit, and is here to stay The UAE was the fi rst in the Middle East to embrace A key driver behind the UAE’s swift evolution is the steely Samsung Pay solutions as it chases its dreams of determination by the government to promote electronic becoming a cashless society by 2020, and banks are payments in support of a wider national agenda (Vision taking it one step further. 2021). The government was the fi rst of its Arab neighbors to introduce an electronic payment system such as e-Dirham, a RAKBANK, which off ers Shariah solutions through tool to facilitate the collection of revenues of governmental RAKislamic, was one of the six banks in the UAE to introduce and non-governmental service fees in a safe and secure contactless and cashless payment solutions through Samsung manner. Over AED2.5 billion (US$680.51 million)-worth of Pay back in April; but the bank beat its peers by being the fi rst federal government revenue was collected through e-Dirham not only in the UAE but in the entire Middle Eastern region to in the second quarter of 2017, up by over 25% year-on-year. integrate the South Korean technology for its ATMs. The number of transactions conducted over the system also increased from 9.97 million at the end of June 2016 to 10.84 Implemented in partnership with Samsung Gulf million 12 months later. Electronics, the digital solution allows RAKBANK’s customers to make cardless cash withdrawals from its ATMs using certain The UAE Banks Federation is also in the fi nal stages Samsung smartphones. of forming Emirates Digital Wallet – jointly owned by 16 shareholding banks including the nation’s biggest Islamic banks such as Dubai Islamic Bank, Abu Dhabi Islamic Bank, However, with a Readiness score of Sharjah Islamic Bank and Al Hilal Bank – and is on track to 69, the UAE has eliminated many of introduce a society-wide cash transformation to digital. the typical macroeconomic barriers According to Mastercard, 74% of consumer payments are of creating a cashless society still made on a cash basis, placing the UAE as a country just starting its cashless journey. “Currently, RAKBANK is taking a phased-out approach and shall begin by targeting ATMs that have strong footfall “However, with a Readiness score of 69, the UAE has in locations such as Dragon Mart 2, Wafi Mall and City Center eliminated many of the typical macroeconomic barriers of Me’aisem. Soon, customers will be able to use Samsung Pay creating a cashless society,” noted Mastercard. solutions on most of the bank’s ATM network,” said Peter England, the bank’s CEO.

Back in April, RAKBANK along with Mashreq, Emirates NBD, National Bank of Abu Dhabi, Abu Dhabi Commercial Bank and Standard Chartered (all of which cater to the Muslim market as well), were the fi rst banks in the region to adopt Samsung Pay – based on Near Field Communication and Magnetic Secure Transmission technologies, the highly secure service integrates fi ngerprint authentication, card tokenization and Samsung’s defense-grade mobile security platform, Samsung KNOX. The technology, however, is only applicable to Mastercard holders.

Samsung choosing the UAE as its fi rst Middle Eastern market to roll out its digital payment solution does not come as a surprise – the Emirates after all boasts the highest level of smartphone penetration in the world at 80.6%, according to Newzoo. Mastercard also identifi ed the UAE as among those most rapidly transforming away from being a predominantly cash-based society.

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Rise of the robots: Al Rajhi turns to RPA to slash fraud risk and enhance effi ciency

The world’s largest Islamic bank intends to optimize while simultaneously increasing accuracy and minimizing business effi ciency by replacing manual labor with errors in transactions. Leaving everyday repetitive tasks to its Robotic Process Automation (RPA), a move which has robotic technology, the Islamic bank also managed to redirect so far reduced the bank’s vulnerability to potential card its human resources to more value-added and customer- fraud cases by 70%. centric services.

In less than nine months since it fi rst began automating The bank is currently working on doubling the usage its banking operations, Al Rajhi Bank has increased the of RPA before the end of December, COO Waleed Al Mogbel nunumberm of automated operations by confi rmed. oover 600% to over 60 segments iincluding retail credit card, Al Rajhi over the last year has aggressively pushed its customer care and banking. The fi ntech agenda: it was the fi rst in the Kingdom to integrate Saudi bank now processes in RPA in September 2016, and in May 2017, became the fi rst excess of 15,000 transactions Saudi bank to conduct a cross-border money transfer using daily under RPA, increasing Ripple blockchain technology; it is now looking to scale productivity and effi ciency by up the utilization of distributed ledger technology across Waleed Al Mogbel dramatically reducing the diff erent business lines, with a special focus on remittance processing time and response (See IFN Fintech June Issue). time to customers’ requests CompareAsiaGroup seals US$50 million Series B funding

A group of international investors, led by the World fi nance products and specifi c Islamic fi nancial concepts such Bank Group’s International Finance Corporation (IFC), has as Takaful and the prohibition of Gharar and Riba,” explained poured US$50 million in Series B funding into an online Reijman. “Some of our most popular articles on the blog are personal fi nance marketplace which will channel the explanations on how Islamic credit cards and Islamic personal investment toward enhancing Islamic fi nancial literacy, loans work.” Only one in three Malaysians is considered among others. fi nancially literate, according to a World Bank and S&P study.

“Islamic fi nance is a key pillar in our content strategy Backed by Investment Partners, the and source of growth,” Mark Reijman, the co-founder and group won the buy-in of the likes of Alibaba Entrepreneurs managing director of CompareHero.my, the Malaysian outfi t Fund, SBI Group and H&Q Utrust as well as existing investors of CompareAsiaGroup, tells IFN Fintech. such as Nova Founders Capital, ACE & Company and Route 66 Ventures. Also signifi cantly, this round of funding was Present in eight countries, CompareAsiaGroup is an led by the World Bank’s IFC which is investing in technology online personal fi nance marketplace providing consumers it believes is key in reaching the unbanked and with personal fi nance management tools and price undeunderbanked. comparisons of diff erent fi nancial products. The platform’s proposition is built on increasing the “CompareHero.my leverages technology fi nancial literacy of the growing internet population ttoo increase pricing transparency for fi nancial through free fi nancial advice with the aim of pproducts and improve fi nancial literacy. Our facilitating informed decision-making when it comess ssupport for innovative fi ntech companies to managing one’s fi nances. lilike CompareHero.my encourages disruptive ttechnologiese and new business models that “We defi nitely recognize the need to boost ccreater markets for other private sector players to fi nancial literacy in Malaysia in general, but engage,” said Vivek Pathak, the IFC’s regional also the understanding of Islamic personal Mark Reijman director for East Asia and the Pacifi c.

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IDB to harness the power of Islamic fi ntech innovation with pioneering Fintech Islamic Finance Challenge

Launching its fi rst Fintech Islamic Finance Challenge this month, the IDB Group is seeking start-ups and entrepreneurs with game-changing ideas in the hope of creating a fi ntech ecosystem within the global Islamic fi nance industry.

The Islamic multilateral fi nancier is providing opportunities to fi ve projects it thinks are able to translate an innovative idea into real-life settings delivering real and tangible impact in society. These fi ve fi nalists will be granted a sum of money as well as provided with a year-long mentorship program with a mentor Open to all interested parties based in any of the group’s from Spanish university IE Business School and an intensive four- 57-member countries, the IDB is taking a slightly diff erent day fi ntech bootcamp at IE in Madrid. approach toward Shariah fi ntech, opening the doors to fresh green start-ups with only ideas to show. It will then provide these companies with the guidance, expertise and support they need. These fi ve fi nalists will be “Accommodation and transport for fi nalists and teachers granted a sum of money as well (one representative for [each] project), facilitators’ fees, experts’ as provided with a year-long fees, team-building events, breakfast and lunch are included,” the mentorship program IDB noted.

The Fintech Islamic Finance Challenge is among the latest “We are here to listen to creative and innovative minds initiatives by the supranational to promote technologically- looking for solutions to improve the access to Islamic fi nancial based fi nancial solutions that contribute to a socially responsible services through technology and to those who are determined development through an ethical and Shariah compliant manner; to contribute to a socially responsible development according to its private arm a few months ago revealed plans to set up an Islamic fi nance principles,” said the IDB. incubator for Shariah-friendly fi ntech start-ups (See IFN Fintech May Issue).

Other REDmoney publications

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Dubai ups Islamic fi ntech game; includes Shariah banks into accelerator program

“We“We are continuously investing in ourour world-classw ecosystem at DIFC and that includes an infrastructure thattha is compliant and in line with bestbe practice for Islamic fi nance institutions,”in commented Arif Amiri,A CEO of DIFC Authority, whow called the partnership an “important”“im and “progressive” step for fi ntech for the Islamic economy and for FinTech Hive.

Arif Amiri Dubai is one of the few jurisdictions globally to have explicitly vocalized its Islamic fi ntech hub aspirations – Malaysia, Bahrain and Abu Dhabi being the others; Bahrain last month formed its fi ntech regulatory sandbox and specifi cally outlined Shariah compliant fi ntech as an area of focus. UAE Islamic banks will have a hand in mentoring up- and-coming Shariah fi ntech start-ups and shape Dubai’s Islamic fi ntech agenda as the Emirates’s Shariah economy We are continuously investing in incubator sets itself to work closely with Dubai’s fi ntech our world-class ecosystem at DIFC accelerator program. and that includes an infrastructure that is compliant and in line with Reaffi rming its commitment to Islamic fi nance under its 2024 Strategy and in line with its digital fi nance ambitions, best practice for Islamic fi nance Dubai International Financial Center (DIFC) has formalized an institutions MoU with the Dubai Islamic Economy Development Center (DIEDC) through which the global fi nancial hub makes it a priority to also nurture innovative Shariah compliant fi nancial technology. Worth approximately US$2 trillion and projected to almost double to US$3.5 trillion by 2021 (according to DIEDC), the Under the agreement, Islamic fi nance IslamicIslami fi nance industry holds immense potential. institutions such as Emirates Islamic, Dubai Islamicmic Bank and Abu Dhabi Islamic Bank will join DIFC’ss But as Abdulla Mohammed Al Awar, CEO FinTech Hive as mentors to innovators in the fi eldd of DIEDC, put it: “Within the maturing Islamic of Islamic fi ntech. economy landscape, several segments still need to be tapped. These include mobile banking Finalists will also gain an insight into and payment systems, as well as SME fi nancing. the Islamic fi nance industry through a We are confi dent the FinTech Hive at DIFC dedicated event hosted for them during will go a long way toward developing these which these technopreneurs will be high-potential segments, and are committed exposed to the impact of technology on to supporting the accelerator program to this sector as part of Dubai and the wider guarantee its success.” region’s broader economic development. Abdulla Al Awar

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Africa looks to Abu Dhabi to nurture nascent Islamic fi ntech community

An African social impact fi rm has signed an MoU with effi ciently address the needs of the industry and support Abu Dhabi Global Markets (ADGM) to foster growth for economic growth and development in the region,” said Richard fi ntech start-ups across the Middle East and Africa, with an Teng, CEO of ADGM’s Financial Services Regulatory Authority. important focus on companies off ering Shariah compliant “This new partnership will open up new avenues and create solutions. opportunities for fi ntech fi rms in the Middle East and Africa looking to expand into each other’s markets.” By partnering with the Abu Dhabi international fi nancial center, TechPreneur Africa has created a bridge between the One of the reasons TechPreneur Africa is building this two regions for fi ntech companies to access one another’s connection with one of the world’s most advanced Islamic market. Under the agreement, African innovators would be fi nancial markets is to also leverage on the Emirates’s expertise able to apply to ADGM’s regulatory laboratory to test the and openness to Shariah compliant products to facilitate the viability of their fi ntech solutions as well as pivot off ADGM to growth of Islamic fi ntech start-ups. IFN Fintech understands access other GCC markets and international that the Lagos-based organization has received signifi cant jurisdictions for capital and regulatory interest from technopreneurs to tap the Shariah compliant recognition.recognition Conversely, ADGM’s GCC fi nancial market. and globglobala fi ntech companies would also ggainain the assistance of TechPreneur AfricaAfrica to deploy their products in the Lagos-based organization has Africa.Africa. received signifi cant interest from “We hope that through technopreneurs to tap the Shariah closer collaboration with compliant fi nancial market like-minded fi ntech hubs, we are able to leverage the Richard strengths and expertise Africa is an emerging Islamic fi nance market with Teng of our markets to more promising growth potential, and the ability to test Islamic fi ntech innovations in a regulatory-light environment with established Islamic fi nance infrastructure would facilitate the development and implementation of such solutions in the African market. This partnership will also open doors for Editor Vineeta Tan [email protected] Middle Eastern fi ntech providers to foray into the African Senior Copy Editor Kenny Ng [email protected] region. Business Development Ece Temel (UK) [email protected] Manager For many, the Islamic fi nance Business Development Matt Gabriel [email protected] Manager (Malaysia) proposition is crucial in Africa’s driveive Deputy Publisher & Geraldine Chan toward a 30% fi nancial growth by [email protected] Director (UAE) 2020, a goal TechPreneur Africa Senior Graphic Designer Eumir Shazwan [email protected] CEO Bolaji Finnih is committed Group Managing Editor Lauren McAughtry [email protected] to supporting. A technopreneur Managing Director Andrew Tebbutt [email protected] himself, it comes as no surprise thatat Managing Director & Andrew Morgan [email protected] developing the African fi ntech Publisher ecosystem is a major agenda Published By: for the social impact fi rm to MALAYSIA - Suite 22-06, 22nd Floor, Menara Tan & Tan, 207, Jalan Tun Razak, 50400 democratize access to fi nancial Kuala Lumpur, Malaysia DUBAI - 3rd Floor, X2 Tower, Jumeirah Lake Towers (JLT), Jumeirah Bay, PO Box 126732, services. Bolaji Dubai, UAE LONDON - Level 1, Devonshire House, 1 Mayfair Place, London W1J 8AJ, United Finnih Kingdom

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