Opportunities for SMEs: Thrive with Digital Islamic Financing solutions

Opportunities for SMEs: Thrive with Digital Islamic Financing solutions

Islamic financial services, provided to people and enterprises via technology, also known as digital Islamic financing, covers all facets of Islamic finance, such as Islamic investment and Takaful (Islamic insurance). Digital Islamic financing options provide customers with an effective and simple way to manage their finances while following Shariah principles These solutions are now available through Internet platforms or mobile applications. By increasing access to Islamic financial goods and services, especially for underprivileged groups, these solutions also advance financial inclusion.

Malaysia now has a developed Islamic finance ecosystem with active and dependable companies, a wide range of products, and extensive supporting infrastructures. Access to digital Islamic financing solutions can be especially beneficial for Small and Medium-sized Enterprises (SMEs) for several reasons:

The Benefits of Islamic financial services to SMEs

Accessibility and Convenience:

SME access to Islamic financial goods and services is made simpler and faster through digital Islamic financing solutions. SMEs may simply access these services through their smartphones or other devices from anywhere and at any time, eliminating the need to go to a physical location or meet with a financial advisor.



Digital Islamic financing solutions are generally more cost-effective than traditional financing methods, as they reduce the need for intermediaries, paperwork, and physical infrastructure. SMEs can save time and money by using digital platforms to apply for financing, manage their accounts, and make payments.


Enhanced Transparency and Accountability:

The ability to track transactions and keep an eye on accounts in real-time makes digital Islamic financing solutions more transparent and accountable for SMEs. As a result, there is more trust and confidence in the financial system, which is crucial for SMEs to forge lasting bonds with clients, suppliers, and financiers.

Overall, digital Islamic financing solutions provide SMEs with greater flexibility, convenience, and accessibility to financing, which can help them to grow their businesses and contribute to economic development.


What is in the market?

As of April 2022 Bank Negara Malaysia issued 5 digital bank licenses – 3 conventional and 2 Islamic – with the objective of meaningfully address the financial inclusion gap and providing further advancement to the digital and Islamic finance industry,

Around US$2.5 trillion is the estimated market size for Islamic banking and finance worldwide. In 2021–2022, the global Islamic finance industry was predicted to grow by 10-12%, according to S&P Global Ratings’ Islamic Finance Outlook 2022 Edition. The pandemic exacerbated the growth of the digital banking space and quite effectively the Islamic banking space in one fell swoop. 

Apart from digital banks, there are several other digital fintech players which are regulated under the Securities Commission’s (SC) Guidelines on Recognized Market.


Here is a list of Islamic digital fintech players in our Market:

  1. HelloGold

    HelloGold, an award-winning savings software, is designed to help individuals safeguard their wealth through gold savings. With this software, users can easily purchase, store, sell, and redeem actual gold that is certified Shariah-Compliant by Amanie Advisors.
  2. Wahed

    Wahed offers a simplified approach to halal investing, with a significant following of over 300,000 investors globally and support from credible celebrities. The company is regulated and certified by the respected Shariyah Review Bureau.

  3. Raiz

    Raiz is a mobile-first investment platform created in collaboration with Permodalan Nasional Berhad (PNB). It offers users the opportunity to invest small amounts of their spare change, with a minimum of RM0.20. While they do not have a Shariah advisor, Raiz ensures all investment portfolios are involved in Shariah-compliant funds.

  4. Finterra

    Finterra is a FinTech company that uses blockchain technology to transform global finance, the economy, and the environment. Their goal is to create fairness worldwide, which is helping to bring back Islamic social finance. They have received awards for their work.

  5. Funding Societies Malaysia

    Joining this impressive lineup is now Funding Societies. Certified by our Shariah advisor Masryef, we are set to release several Islamic Financing solutions for Malaysian SMEs.

    We have explored the landscape and in our efforts to serve the economic landscape in Malaysia plunged into Islamic financing to close the gap for halal financing solutions.

    Already available in the market is our Islamic Trade Financing-i, Business Term Financing-i and Micro Financing-i which you can click here to read more about