August was packed with exciting developments as Islamic Coin is gearing up for its token offering in September while an insurtech in Malaysia debuts its Takaful product marking its entry into the Islamic insurance space.
Regulations
- Oman’s Capital Market Authority sought feedback on a consultation paper for its Virtual Assets Regulatory Framework in a move to regulate virtual asset providers and crypto activities.
- Saudi Central Bank issued insurance technology (insurtech) rules to enable insurtech companies to perform flexibly within an innovative-based regulatory framework.
- Securities Commission Malaysia issued technology risk management guidelines after almost a year since it sought feedback for the guidelines.
- Securities and Exchange Commission of Pakistan removed 120 illegal loan apps on Google and Apple stores.
- Malaysia Digital Economy Corporation signed an MoU with Halal Development Corporation to encourage the development of Halal digital technology.
Islamic finance innovations
- Pakistan’s Bank of Khyber signed an MoU with the Communications and Works Department of the government of Khyber Pakhtunkhwa to provide its corporate and digital platforms for various collections and services.
- National Savings, a department under the Finance Division of Pakistan, signed a partnership with payment system 1LINK to expand its network.
- Azentio Software is working on new Islamic banking use cases on the back of a rising generative artificial intelligence wave.
- Somalia-based ASAL Microfinance partnered with digital finance service provider Musoni to help streamline its operations.
Venture capitals and fundraising
- Venture capital Gobi Partners partnered with HSBC to support, among others, tech start-ups focusing on the Muslim community.
- Saudi education technology start-up YaSchools, which offers Shariah compliant microlending service, raised US$600,000 in seed funding from angel investors.
Alternative finance
- Online payment gateway Telr partnered with financing platform FlapKap to offer Shariah compliant revenue-based financing to Telr’s merchants and SMEs.
- SME digital financier Funding societies signed an MoU with CGC Digital to provide digital credit guarantee for Malaysian micro and small businesses.
- Agri-fintech start-up Dajin launched Shariah compliant financial solutions for Egypt’s poultry industry.
- Fintech microfinance company Loan Financing secured a license from the Saudi Central Bank.
- Orpheus Capital partnered with SOLV Malaysia to offer Shariah compliant SME financing solutions through the latter’s platform.
Blockchain and cryptocurrency
- Islamic Coin plans to conduct a Reg D public token offering in September 2023. It also signed MoUs with four companies in the UAE as a move to accelerate its global adoption.
Crowdfunding
- Apping Technology, the first Shariah compliant company listed on Malaysia-based pitchIN platform, raised 890% of its fundraising target.
P2P financing
- Saudi Central Bank granted Islamic P2P finance platform Themar with a license to provide crowdfunding solutions. Themar also received a Shariah compliance certification from the Shariyah Review Bureau.
TakaTech
- Malaysia’s insurtech start-up Ouch! launched its first Takaful product Pusara Pro.
IFN Fintech Landscape Updated
We added four fintech start-ups in August, bringing the total to 384.
Verticals: Alternative finance saw two new entrants (Dajin Platform and FlapKap), personal finance management saw one new entrant (mthmr) and TakaTech saw one new entrant (WellX).
Countries: Egypt saw two new entrants (Dajin Platform and FlapKap), Saudi Arabia saw one new entrant (mthmr) and the UAE saw one new entrant (WellX).