Commodity trading platform Sedania As Salam Capital is transforming itself into an Islamic fintech company and high on its agenda are product expansion and capturing new market segments.
Sedania As Salam Capital has broadened its remit: from focusing solely on facilitating the trading of commodities for Islamic financial institutions, it has now ventured into middleware.
Partnering with the Singaporean arm of Swiss company Crealogix, Sedania As Salam Capital will be implementing Crealogix’s banking software which digitalizes financial products and services. This expansion is part of the firm’s strategic change from being a commodity trading platform to a fully-fledged Islamic fintech company.
The decision to develop various fintech solutions is motivated by the immense opportunities offered by the nascent fintech sector in Malaysia, CEO Mohammad Ridzuan Abdul Aziz told IFN Fintech. The company is working simultaneously to enhance its existing offering while introducing new products through its internal capabilities as well as through partnerships with other providers.
“We are looking at new commodities to scale-up our Tawarruq offering not only in Malaysia but abroad,” Ridzuan said, adding that the geographical expansion is possible as the supplier of the new commodity has a global footprint. “From offering about RM200 million (US$51 million) in financing, with the new commodity we would be able to offer up to RM1 billion (US$255 million) in financing and also reach a larger segment of the market beyond personal financing.”
Its As-Sidq trading platform currently utilizes airtime as an asset and is used by over 41 Islamic financial institutions in Malaysia including banks, cooperatives and factoring houses.
“At the same time, we are looking at automating other Islamic finance contracts including those that focus on deposit products and we are looking at moving into the B2B2C (business to business to consumer) space from just B2B (business to business),” Ridzuan shared. “We are branching into other segments but they are still closely related to our existing business model – we are leveraging on what we have and enhancing our offering to the customer.”