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With 600 Local Bank Branches Facing Closure, Lenders Must Quickly Adapt To The Changes



Just like most financial institutions, the licensed credit community will have to adapt to the times and embrace new technologies and practices. With the threat of closure looming, GoHalal Financing Program (GHP) might be the perfect solution.



It started around 2000BC of the ancient world. Back then, merchants made grain loans to farmers and traders who were carrying goods between cities. Now, it is an integral part of the global economy. However, despite being one of the oldest industries in the world, lenders will once again need to adapt to the times.


According to the strategy consultancy firm Roland Berger, over 11,000 retail bank branches across Southeast Asia are expected to close by 2030. This includes around 567 closures in Malaysia as lenders increasingly move away from branch-based services.


This news is not unexpected as the number of new bank branches in Malaysia has been steadily declining throughout the years. From 2015 to 2020, only 167 new branches opened compared to 252 from 2010 to 2015. Over the years, financial institutions have stepped up efforts to upskill and reskill staff as they prepare for a more digital future.


Credit Community Need To Follow Suite and Adapt


As with most other industries, the credit community will have to adapt to the times and embrace new technologies and practices. Routine teller services such as applying for loans, cashing cheques, depositing money, and processing withdrawals are increasingly being used by only a sub-segment comprising older and less technologically savvy customers.


The role of financial institutions branches will continue to evolve over the next decade towards handling a more focused set of advisory activities and high-value-added products. This includes bancassurance, investment, or real estate financing. Another option is to offer more Shariah-compliant products.


The Rise of Shariah-Compliant Financing


Islamic finance is a booming industry. Over the past decade, it has grown at an exponentially high annual rate of between 10-12 per cent. Shariah-compliant financial assets may include banking, capital markets, money markets, and insurance. In fact, its total value in 2015 was estimated to be around USD2 trillion.


The industry, of course, has Malaysia to thank for this surge. The country first introduced Islamic banking in 1983. Since then, multiple policies and initiatives have been brought forth to strengthen the entire Islamic finance ecosystem.


Among the benefits of Islamic financing include the following:

  • Follows Syariah Principles -- Completely free from unethical elements and immoral practices (interest, gambling, etc).

  • Economic Development -- Islamic banking will only invest in promising business ventures, resulting in high ROI.

  • Stability in Investment -- Islamic Finance analyses and rules out companies with risky financial practices via thorough audits.

  • Loss and risks are shared -- Net profits and losses are shared among shareholders.


In this modern era, consumers see major benefits to the ethical practices and processes of the organization. This automatically increases trust. Adopting the ethical practices of Islamic finance will help the credit community overcome the “money lender” stereotype.


GHP Might Be The Perfect Solution For The Local Credit Community


GoHalal Financing Program (GHP) is a set of necessary procedures and required tools needed by the licensed credit community (KPKT license holders) to ensure full Shariah compliance of their financing product offering.


A product from SEDANIA As-Salam Capital Sdn Bhd (SASC), GHP has the following features:

  • Digitalisation -- Automated processing (acquire leads, online applications & credit checks) via an established digitalized platform, available 24/7.

  • Shariah-Compliant Funding -- Increase your brand and company trust by offering credible Shariah-compliant products.

  • Direct Debit e-Mandate -- Reduce the risk of non-performing loans and easily keep track of your recurring loan payments with automated collection via direct debit.

  • Takaful Protection -- Disbursed monies are protected with Takaful coverage.

  • Digital Marketing -- Promote your products digitally with cost-effective digital marketing plans.


SASC has successfully deployed end-to-end Islamic based financial platform/automation & integration to various Islamic Financial Institution segments. Don’t be left behind! Get in touch with us today, for a full presentation of the program.




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