KUALA LUMPUR: Bank Islam is targeting to get two million users, comprising its existing and new customers, to use its first digital banking product which is expected to be launched in the second quarter of next year.
This follows its strategic collaboration with a global business and technology consulting firm, Cognizant.
The collaboration is aimed at assessing the best suitable digital product to simplify and improve customers' banking experience as well as reduce its operational costs.
Bank Islam chief executive officer Khairul Kamarudin said it will be the bank’s first step into using financial technology (fintech).
"As digital technology progressively enters the financial market, we see growing demand for fintech within the Islamic banking as well.
"For our first digital product, we plan to increase the customer base from the current 900,000 to two million. This will include new customers," he said.
Khairul said the collaboration will also enable the bank to create a product that will expand its target segment to small and medium enterprises and tap the rural and underbanked segments.
"By partnering with Cognizant to build a digital bank, digitalisation will help the bank to accelerate SME banking by provising business solutions for their operational and financial needs," he said.
"It will also enable the bank to rapidly tap the rural, underbanked segments and boost financial inclusion by overcoming cost and physical barriers," he added.
Bank Islam largely serves the mass market for savings and checking accounts, mortgages, personal loans and debit/credit cards.