In the Euro Zone and Japan, partial indicators show that the third quarter GDP growth has strengthened after the contraction of the economic activity in Japan during the second quarter. However, consumption is still weak in both zones and, especially in the Euro Zone, financial conditions have also been deteriorated with potential effects on consumption and investment. In this sense, confidence indicators so much for consumers as for firms are showing less favorable perspectives. Despite the still uncertain effects that the adjustment of global financial markets would have, projections of the world GDP growth have already been reduced (moderately). It is not a surprise that these reviews affect chiefly projected GDP growth of industrial economies. The World Economic Outlook, presented by the IMF today, reduces the forecast for World Economy growth for 2008, by half a percentage point, to 4.8%, with a forecast for the US  BIS Review 120/2007  1  GDP growth of only 1.9%. In the same report, growth projections for the Euro Zone and Japan are also corrected downward for 2008. Corrections for emerging economies are marginal, particularly for China, India and Russia. In spite of adjustments in global financial markets and of reductions in the GDP growth perspectives for advanced economies, the appreciation of stock markets in emerging countries is surprising. Apparently, markets have anticipated that the deceleration of industrial countries will have reduced the effects on these economies and their financial conditions will not deteriorate as much.

With a diverse population and a growing middle class, Malaysia is an ideal test bed for developing and commercialising fintech solutions. The emergence of fintech has opened up new opportunities which can greatly benefit the financial industry. At its core, fintech has led to the creation of various business models that help improve and simplify financial transactions, which 10 or 20 years ago seemed impossible. Here, I would like to highlight three key areas that Islamic finance stand to gain from fintech. Entrepreneurs too stand to gain from fintech. First, fintech provides the technological underpinnings to realise the goal of Islamic finance in creating a risk sharing economy. This will in turn benefit entrepreneurs who will gain wider access to bank-intermediated credit. An example is the Investment Account Platform (IAP). IAP is Malaysia’s first multi-bank online 1/3  BIS central bankers' speeches  platform that combines the credit evaluation expertise of Islamic banks and the power of technology to channel funds from investors to economic ventures. This virtual “multisided” platform facilitates a collection of interesting investment ventures and projects, with transparent risk-return rewards for investors. Second, fintech has opened up new sources of funding to entrepreneurs, in what is increasingly being referred to as the alternative financing space. Crowdfunding and peer-to-peer (P2P) funding platforms have emerged as highly efficient “matchmakers” between entrepreneurs and investors. From the USD10 million raised globally in 2009 through nine major platforms, crowdfunding platforms mobilised over USD767 million in 2016 with backers from over 200 countries.