14th IFSB Summit 2019 - Islamic Finance for Sustainable Development in the Era of Technological Innovations
The IFSB is pleased to announce that the 14th IFSB Summit will be held from 12 to 14 November 2019 in Jakarta, Indonesia. Bank Indonesia will be the host for this year's Summit, now a biennial event for the IFSB.
Islamic Finance for Sustainable Development in the Era of Technological Innovations.
The Islamic Financial Services Industry (IFSI) is currently worth about USD2.19 trillion, and operates in more than 60 countries. In 12 of these countries, the Islamic banking sector has attained systemic significance. The IFSI continues to explore new horizons, embrace emerging challenges and adapt to latest innovations.
The industry has untapped potential as an alternative financial platform to provide financial intermediation that is all-inclusive, to drive acquisition of sustainable livelihood capital, and one that is linked to the real economy.
In attaining the desired potential of the IFSI, intellectual discourse on both the "mechanics" and "spirit" of Islamic finance are equally important. The extent and proposed strategies / initiatives that emphasise operational efficiency and profitability are pertinent. In parallel, it is crucial for the industry to ensure it is anchored on values in its entire ramifications to all stakeholders with due cognition to the Sharī'ah principles that underlie Islamic finance.
In the face of significant financing gaps to achieve the global objectives of sustainable development, Islamic finance's untapped potential as a substantial source of financing has a crucial role to play. More than ever, there is an increased rationale to leverage on the potential of Islamic finance to provide an additional platform through which resources can be mobilised to promote shared prosperity, reduce poverty, and enhance socio-economic inclusivity anchored on the principles of the Sharī'ah.
Recent data from the Financial Inclusion Index (FINDEX) indicate that lack of financial inclusion remains a relatively significant issue in countries with significant presence of Islamic finance. On a global level, the financial inclusion agenda has attracted the interest of various international organisations, central banks, international standard setters and market players in the financial ecosystem. This is pertinent when viewed from the perspective of global sustainable development objectives.
Notwithstanding its remarkable growth, Islamic finance in the Muslim world provides a great opportunity to ensure inclusive financial development by bringing to the fore, the true value (fairness) and inherent principles (Maqasid Al-Sharī'ah) of Islamic finance. This may require mainstreaming Islamic finance globally through among other means, the use of technology to broaden access to various Islamic finance platforms. In some jurisdictions with a significant Islamic presence, there is much potential and ongoing efforts to tap into the synergy between Islamic finance and technological advancements through for instance, regulatory sandboxes, among others.
The relative plausibility of impossible is gradually diminishing since the inception of the fourth industrial revolution. The wave of technological innovation has hit the shores of financial services and has greatly driven the financial landscape to a new frontier. The biggest imprinted landscape i.e. Internet of Things (IoT) has given rise to the digital economy which has redefined technological innovation within the financial industry, manifest in Fintech, InsureTech, SupTech, Regtech and many others.
In addition, technological innovation has brought forward completely new propositions encompassing not only new and improved services, but also serves a more inclusive market segment at a faster pace to maintain relevance with a more dynamic financial services ecosystem. Therefore, the need to accelerate financial inclusion through mainstreaming Islamic finance has driven the IFSI to leave no stone unturned in riding high on this redefined wave. It is envisaged this would have meaningful impact on the real economy.
The IFSB Summit seeks to explore the essence in connecting the triad: inclusiveness, technological innovation and sustainability, as a significant medium through which the global sustainable development objectives can be achieved and to steer the global financial ecosystem towards a new frontier of mainstreaming Islamic finance services.
The Summit is an important platform that brings together esteemed delegates to explore current developments and the future outlook of the IFSI in charting the new frontier of Islamic finance and to address key challenges in order to be ahead of the curve in this digital era.