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The analysis of Investment Account Platform (IAP) to promote investment account product in Malaysia and Indonesia

Aulia, Mahdiah and Hassan, Rusni (2020) The analysis of Investment Account Platform (IAP) to promote investment account product in Malaysia and Indonesia. In: The importance of new technologies and entrepreneurship in business development: in the context of economic diversity in developing countries. Lecture Notes in Networks and Systems . Springer Nature, Switzerland, pp. 1-12. (In Press)

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Abstract

The criticism on the high concentration of debt-based products in Islamic banks have pushed the regulators and Islamic banking industry to develop new products such as investment account product. Investment Account Platform (IAP) as the first bank intermediated financial technology platform was established to encourage Islamic banks to utilize equity-based product i.e. investment account. This paper tries to analyze the current practices of IAP as well as the issues and challenges faced by IAP and the sponsoring banks in Malaysia. Furthermore, the innovation of IAP may give insights for the advancement of investment account product which reflect the true nature of Islamic banking and finance in Indonesia. This study adopts qualitative research which includes interviews with the employees of IAP and the sponsoring bank. This study also gathers in-formation from library research and webinar related to this topic. This study shows that IAP has successful projects listed on the platform; however, it still has not reached its objective to give wider financing opportunities to SMEs. There are some challenges faced by the platform and its sponsoring banks. Nevertheless, the future collaboration with international institution may scale up this plat-form. IAP has distinct value propositions in the system that aims to increase the utilization of Islamic investment accounts in Islamic banks which are unpopular compared to debt-based products. There are some important lessons can be learned for the development of an investment account platform in the future for Indonesia. This study is one of the first researches that give analysis of the performance of IAP and the possible application in Indonesia.

Item Type: Book Chapter
Additional Information: 1525/84792
Uncontrolled Keywords: Investment Account Platform (IAP), financial technology, Islamic banking.
Subjects: H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
H Social Sciences > HG Finance > HG4501 Stocks, investment, speculation
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr Rusni Hassan
Date Deposited: 18 Nov 2020 10:22
Last Modified: 18 Nov 2020 11:12
URI: http://irep.iium.edu.my/id/eprint/84792

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