Sedania unit inks deal to bid for digital Islamic bank licence

Sedania unit inks deal to bid for digital Islamic bank licence
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KUALA LUMPUR (Oct 14): Sedania Innovator Bhd unit Sedania As Salam Capital Sdn Bhd (SASC) has inked a memorandum of understanding with FCA Capital Sdn Bhd in its bid for a digital Islamic bank licence from Bank Negara Malaysia (BNM).

In a statement on Thursday, Sedania said FCA acted as the financial advisor for a consortium that submitted a bid for approval of a digital Islamic bank licence from BNM.

It said the decision for the digital Islamic bank licence is expected to be announced by the first quarter of 2022.

Sedania said subject to approval from the relevant authorities, the consortium intends to undertake digital banking operations in the region with emphasis on waqf concept.

It said 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 firm said this growing demand is expected to continue, considering the major shift in digital behaviour towards banking habits amid the global Covid-19 pandemic.

SASC CEO Khairul Nisa Ismail said the challenging economic conditions provide opportunities for shariah-compliant services to thrive as more businesses are seeking transparent and ethical funding to safeguard their investments.

“This provides SASC with the strategic avenue to continuously strengthen its lead position as one of the Islamic fintech providers in the region,” she said.

Meanwhile, SASC chairman Datuk Wan Mohd Fadzmi Che Wan Othman Fadzilah said the partnership with FCA further validated its capabilities and strength in the industry via embracing digital technologies that will help boost the Shariah and Islamic finance market in Malaysia.

“Shariah fintech services are growing exponentially and I'm confident that SASC will contribute and play a prominent role in the Islamic fintech scene,” he said.

Khairul Nisa said the firm was at a strategic intersection to drive financial inclusion, especially for Malaysia’s underserved and unserved population through Islamic fintech.

“The combination of waqf management with digital banking will revitalise the practice of waqf and unlock the potential of the industry especially since ESG credentials received stronger focus and becoming more integrated in the business models,” she said.

At 9.51am, Sedania shed 0.5 sen to 63.5 sen, valuing it at RM220.47 million.