The new system being developed by IRTI
The system allows creditors to reduce the
“Fintech could stimulate growth by
and implemented jointly by IRTI and
credit default rate to improve their overall
making transactions quicker, more secure,
E24P uses a novel incentive mechanism
business performance and accelerate
and easier to implement. And we believe
that encourages early repayment and
efforts in areas of financial inclusion.
the social role of Islamic finance could
contributes fees to an insurance pool
unlock new growth opportunities as core
that covers involuntary credit defaults.
ACCELERATING GROWTH
markets implement the UN Sustainable
Such a system would not be feasible
According to a recent S&P report, the
Development Goals, and issuers and
through conventional arrangements but
global Islamic finance industry will
investors become more sensitive to
is facilitated through the use of high-
continue to expand slowly in 2019-
environmental, social and governance
performance blockchain technology. Once
2020 but fintech and blockchain could
(ESG) issues,� said S&P Global Ratings head
completed, the system will be of great
significantly accelerate the growth. The
of Islamic Finance, Mohamed Damak.
value to Islamic banks and other financial
COVID-19 pandemic has also shown the
institutions.
importance of leveraging technology and creating a nimbler industry. With
With this system, Islamic banks, and
the right coordination between different
indeed other financial institutions, can
Islamic finance stakeholders, the report
ensure that credit assessments are performed in a provably transparent and responsible manner while keeping
argues that the industry could create new avenues of sustainable growth that serve the markets.
the data and methodology used appropriately secure and confidential.
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