Sunday, April 21, 2024
Editor's PickBank Muamalat Malaysia shifts to cloud-based model

Bank Muamalat Malaysia shifts to cloud-based model

Bank Muamalat Malaysia, one of 16 fully-fledged Islamic banks in the country, has signed a collaboration with Google Cloud that is expected to speed up the bank’s transformation into a digital Islamic bank.

Under the collaboration, Google Cloud will be extending its capabilities in digital infrastructure, data analytics, security and generative artificial intelligence (AI) to develop Bank Muamalat’s digital banking services.

The bank is making a strategic shift to a cloud-based operating model, which involves migrating its applications and databases to Google Cloud, and integrating them with solutions from software and banking infrastructure company Mambu (which is also a Google Cloud industry solutions partner) and banking technology provider Backbase.

Bank Muamalat had adopted Mambu’s digital core banking platform and Backbase’s engagement banking platform to power its Islamic financing and deposit offerings.

These new initiatives, which have been approved by Bank Negara Malaysia, are expected to help increase the share of Islamic bank financing in Malaysia, which currently stands at 41% of total bank financing, read a statement.

The bank’s move toward digital banking is also expected to expand its reach to other segments of the Malaysian market, particularly the underserved.

“It’s our mission to bring digital banking’s full range of benefits to Malaysia’s Islamic banking market,” Khairul Kamarudin, the president and CEO of Bank Muamalat, said.

“By having our digital core systems and front-end running on Google Cloud, we anticipate streamlined IT operations and enhanced responsiveness, laying the foundation for innovation with enterprise-grade generative AI and ultimately delivering superior banking experiences.”

Malaysia’s digital banking landscape saw the entry of two Islamic neobanks licensed by the central bank, which has set a deadline of the end of March 2024 for their operational readiness. One of them — AEON Bank — already has a phased rollout scheduled for the first half of this year.

Digital banking services are expected to serve a big chunk of the Malaysian adult population; according to Moody’s Investors Service, over half of the population does not have full access to the banking system.


Please enter your comment!
Please enter your name here