KUALA LUMPUR – Islamic banking or Syariah banking in Malaysia is the next forefront for AI (artificial intelligence) according to information technology and artificial intelligence company Danfishel Software Solution Sdn Bhd.
Its country manager Muhamad Haizal Mohd Akhir (pic) said his company is working to bring the benefits and advantages of AI to Malaysian banks and finance companies, including takaful (Islamic insurance) firms.
“AI is the undoubtedly the future for Islamic banking in Malaysia and the rest of the world,” said Muhamad Haizal.
“We believe there is tremendous potential in augmenting AI into Islamic banking systems and we are keen to assist financial institutions roll out AI in their Islamic banking infrastructure, systems and products,” he said.
The global demand for an ethical form of investing has led to a major boom in Islamic banking and finance, and AI will become an intrinsic component for financial organisations to function in coming years.
Islamic banking, also known as non-interest banking, is a system based on the principles of Islamic or Syariah law and guided by Islamic economics. Islamic banks make a profit through equity participation which requires a borrower to give the bank a share in their profits rather than paying interest.
Since Islamic finance is based on several restrictions and principles that do not exist in conventional banking, special types of financing arrangements were developed to comply with the following principles.
“As such, there is a real need for banks offering Islamic products to be equipped with AI in order to make better decisions and risk assessment, and this includes functions in the front office, the middle office and the back office of the respective banks,” said Muhamad Haizal.
He added that Danfishel’s AI for Islamic banking is built in compliance with the Shariah Advisory Council on Islamic finance of Bank Negara Malaysia (SAC) and covers Mudharabah (profit sharing), Wadiah (safekeeping), Musharakah (joint venture), Murabahah (cost plus finance), Ijar (leasing), Hawala (international fund transfer system), Takaful (Islamic Insurance) and Sukuk (Islamic bonds).
Danfishel claims its AI helps bank and financial institutions reduce workloads, provide advanced data analytics, make better decisions, manage capital, prevent fraud, personalise customer service, provide state of the art customer experience, manage wealth and portfolio efficiently, make accurate predictions on trends and market movements and many others.
Muhamad Haizal said the team at Danfishel comprises industry experts from the international scientific, information technology and mathematics community who lend their expertise collectively to create AI products for the banking and financial industry.
Danfishel’s other AI products for the banking sector includes the ROVER, CASA (Current Account & Savings Account), Loan Management Solutions, Mortgage Solutions, Wealth Management Solutions, Payment Management, Internet & Mobile Banking Solutions, Forex & Trading, Insurance Management Solutions and Digital Banking.
The ROVER acts as crystal ball for banks, offering a 360-degree view to see the past, present and future of its customers and their relationship with the bank.
For further information on the company, log on to www.danfishel.com. – Money Malaysia