KUALA LUMPUR: Sedania As Salam Capital Sdn Bhd (Sedania As Salam) has entered into a memorandum of understanding with FCA Capital Sdn Bhd to leverage the rising demand for Shariah-compliant financial services in the Islamic financial technology (fintech) ecosystem.

Chairman Datuk Wan Mohd Fadzmi Che Wan Othman Fadzilah said the partnership would further validates the company capabilities and strength in the industry by embracing digital technologies that would boost the shariah and Islamic finance market in Malaysia.

"Shariah fintech services are growing exponentially and I am confident that Sedania As Salam will contribute and play a prominent role in the Islamic fintech scene," he said in a statement today.

The technology provider said under the agreement, FCA would acted as the financial advisor for a consortium that submitted a bid for which is expected to be announced by the first quarter of 2022.

The company said the consortium intends to undertake digital banking operation in the region with emphasis on waqf concept.

It believes that the waqf digital Islamic bank could play a major role in supporting national economic recovery endemic via its inclusive model both in terms of services and ownership of the bank.

Chief executive officer Khairul Nisa Ismail is confident that FCA would play a pioneering role in the development and establishment of a digital waqf banking business model in the region and subsequently unlock the potential of waqf economics.

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

Khairul Nisa noted that the challenging economic condition would provide Sedania As Salam with the strategic avenue to continously strengthen its lead position as one of the Islamic fintech providers in the region.

"The conditions has provided opportunities for shariah-compliant services to thrive as more businesses are seeking for transparent and ethical funding to safeguard their investments," she said.

Sedania As Salam is projecting growth in the demand for digital solutions in Islamic financial services as it has served over 70 financial institutions with more than RM60 billion loans processed to date.

The growing demand is expected to continue, considering the major shift in digital behaviour towards banking habits amid the global pandemic COVID-19.