Malaysia-based Bank Islam is teaming up with Mambu and Experian as it prepares to launch its Centre of Digital Experience.

In addition, Bank Islam is inking a Memorandum of Understanding with a local fintech player, Pod, to develop new products.

The Centre of Digital Experience (“CDX”) lays the foundation to set up a 100% digital bank. This is built on a flexible platform allowing fintechs, digital marketplaces and other strategic partners to plug in directly. The bank says that its CDX solution will launch in the second quarter of 2021. 

Bank Islam: digital first approach

The bank’s digital-first approach means that it will apply next gen technology such as cloud-native digital banking and the Electronic Know Your Customer (“eKYC”) to its products and services. This will enable branchless propositions for greater accessibility for today’s tech-savvy customers.

Specifically, the engagement of Mambu allows the bank to configure Shariah-compliant banking products. Meantime, Experian provides the eKYC solution so customers can open a bank account without visiting a bank branch. 

In addition, CDX is developing an alternative credit scoring model in collaboration with Pod. Together, CDX and Pod will explore solutions for customers generally overlooked by financial institutions, such as gig workers. So, it will identify alternative ways to assess credit worthiness of customers beyond traditional means. This enables flexibility and inclusion in the formal banking system for this customer segment.

Bank Islam, Mambu, Experian, Pod: strategic partners

“Bank Islam via CDX has appointed prominent strategic partners, namely MambuExperian and Pod. These partnerships aim to address the existing market gap for the underserved segments. And it further catalyses our contribution to Malaysia’s digital economy,” says Mohd Muazzam Mohamed, Bank Islam CEO.

Pod’s co-founder and chief executive officer, Nadia Ismadi adds: “The underserved segments including gig workers are struggling to save money, have access to financing and consume financial products; even more so after the pandemic. Pod exists because we believe the job market as we know it is changing. Soon, the majority of the workforce will fall under the informal sector. Thus, it is important that we lay the basic building blocks to deep dive into their financial needs.”

CDX greenfield operations on Mambu

Echoed Myles Bertrand, Managing Director of Mambu APAC says: “We are delighted that Bank Islam has chosen to build CDX’s greenfield operations on Mambu. Internet and mobile banking are key to unlocking economic development and financial inclusion.

“We are proud to support Bank Islam in its bold mission to improve access to digital banking services in Malaysia. Bank Islam has challenged itself to be the leading Islamic bank in the region. This implementation is a big step forward. We look forward to collaborating as it embarks on this exciting new phase of its journey.”

Established in 1983 as the nation’s first Islamic bank, Bank Islam operates a network of 144 branches. It offers more than 70 Shariah-based banking products and services for Muslims and non-Muslims.

Bank Islam logo - Bank Islam teams up with Mambu, Experian and Pod