The fintech phenomenon is not just reshaping finance but also bringing about a social change among the economically disadvantaged of the world. This is particularly true in the world of Islamic finance which seeks to serve some two billion Muslims around the world, a quarter of the world’s population.
HelloGold started in Malaysia, with the inspiration coming from Malaysia’s financial ecosystem. With the average household savings rate at 1.6% of disposable income, one of the greatest challenges the country faces is the income disparity between the rich and the poor. Despite having one of the lowest levels of an unbanked population in the region, Bank Negara Malaysia said that more than 75% of Malaysians find it difficult to raise RM1,000 (US$238.47) in the event of an emergency and have insufficient private investment. As the United Nations Capital Development said, financial inclusion is not solely focused on the percentage of the population with bank accounts, but should also focus on the usage of financial products to save, invest, insure and plan for the future.
The full article is available at Islamic Finance News.
The views expressed in this article are the author’s own and do not necessarily reflect Saray Consultancy’s editorial stance.