Introducing Islamic FinTech 3 May 2017 Oil supported by ... - RFI Summit

1 .Introducing Islamic FinTech 3 May 2017

2 .Oil supported by OPEC resolve Monthly crude oil prices (USD/barrel) The US shale response likely to be critical for determining the ceiling for prices Source : US Energy Information Administration

3 .GCC economies adapting to new fiscal realities GCC Real GDP g rowth (%) Non-oil growth has slowed down sharply but fiscal re-engineering is making headway Source : Institute of International Finance

4 .Productivity is a challenge for the GCC Composition of growth in the GCC countries Ensuring economic sustainability will require a new approach as factor accumulation slows Source : International Monetary Fund

5 .Achieving sustainable economic diversification Bahrain: Sector shares in real GDP terms (2010:100) Source : Information & e-Government Authority

6 .Fintech a cross-cutting , disruptive sector P2P lending crowdfunding REIT platforms PSPs, mobile payments, payment processing Bitcoin, blockchain technology, wallets Big data, credit scoring, research Robo -advisers RegTech Wallets, payments Asset ownership, cyberthreates Social trading, market platforms Automated processes, customized alerts Risk pricing, wearables, telematics Finding the Next Frontier Fintech is a rapidly-growing, disruptive sector that is changing the landscape of financial services… United States , Europe and Asia Pacific constitute the largest investment destinations in the fintech industry **Fintech applications in finance 1,362 companies $44 million in funding per company 54 c ountries $80 billion total funding Source: Finocracy

7 .Much catching-up to do Source : ThomsonReuters FinTech VC investments around the world 2010-2015

8 .In line with Islamic aspirations Mission, values and goals of fintech firms Democratization Disaggregation Market opportunity to the masses Financial inclusion reaching underserved and unbanked Leveraging data and technologies Better and quicker access to information Reduced transaction costs More efficient business models Strengthens any system’s ability Decreased maintenance costs Technology-based consensus-based models (e.g. Blockchain) Disintermediation Direct relationships with the customer Bypasses the need for incumbent financial institutions Lower fees to customer and enhanced revenues to fintech firm Level playing field Information transparency Reduced moral hazard and conflict of interest Decentralization De-Biasing Source: Max Kanaskar

9 .Large unbanked Muslim population An untapped opportunity for Islamic Finance Source: Taking Islamic Banking to the Cloud, Temenos 72% of people in Muslim-majority countries are unbanked 100+ million Indonesia 100 million Pakistan 40+ million Egyp t 20 million Morocco 35+ million Turkey 10 million Malaysia 20 million Nigeria Estimate of unbanked Muslims in the world

10 .Islamic Fintech The time is now Source: Finocracy Today 66% of world population will be internet-enabled 80% will be from Muslim markets 3 billion new consumers 2020

11 .A young population poised for a digital transformation Growing mobile and smartphone penetration rates Median Age 23 30 Muslim Population Non-Muslim Population Source: Finocracy , Thomson Reuters, DinarStandard , GSMA Muslims contribute $107 billion to the $1.9 billion global digital economy Muslim digital economy to grow 160% 2015 2020 38% mobile penetration 39% s martphone adoption 61% mobile penetration 65% s martphone adoption

12 .What can IFIs do? The opportunity is to become more Islamic EQUITY INVESTMENT Venture Capital Private Equity RISK SHARING New economic activities Innovation INCLUSION AND EQUALITY Ensuring access Encourage economic participation

13 .Thank you