Now, with the help of technology, Islamic finance is playing a greater role in expanding outreach of financial services and increasing financial inclusion. Digitally-enabled financial services are resulting in greater access, quality and usage of financial services. Islamic banking and takaful customers are able to equally benefit from online and mobile banking services, and enjoy seamless business transactions through digital platforms for supply chain finance. Digitisation of Islamic products and instruments has even contributed in specific initiatives of enhancing financial inclusion, such as the online application of takaful products that offer affordable and easy to understand protection plans with a convenient claims process. The Islamic banking industry’s recent launch of the myWakaf portal is another such initiative to enable easier and more effective wakaf contributions by individuals to selected projects such as education, healthcare, investment and economic empowerment. In our leadership aspiration in Islamic finance, key areas that were and are emphasised are in governance and ethics. Strong corporate governance and leadership are crucial to uphold Shariah values and raise the impact of Islamic finance to the economy and society. A robust Shariah governance framework within Islamic financial institutions is a must to ensure that Shariah values are internalised and upheld in business practices. The Islamic Financial Services Act 2013 accords due recognition to the importance of governance structure within Islamic financial institutions. In practice, Shariah compliance is supported in Malaysia under a two-tier governance structure that operates at the industry and institutional levels.

The banks’ progress and effectiveness of VBI-related initiatives would be captured through the VBI Scorecard. The underpinning thrusts of VBI are also gaining relevance in the takaful industry as takaful operators are taking initial steps in exploring value-based protection for their customers. Given the universal nature of VBI, I believe that its adoption by financial groups which comprise the conventional financial institutions, as well as issuers and investors would be a natural evolution in the financial ecosystem. Expectations on the next generation of Islamic financial institutions The next generation of Islamic financial institutions would thus be driven by values and not just profit. With a moral outlook for the ultimate good, strengthened by self-discipline, greater accountability and integrity, Islamic financial institutions will have stronger consideration of the impact of decisions made. There should be greater drive to continuously improve their offerings and treatments towards customers and employees, which include fair and transparent disclosure in order to increase the positive impact of their activities. Development of banking practices based on VBI concepts are also anticipated to encourage the creation of new business opportunities and provide the foundation for better returns for Islamic banks over the long term. An example is assessment of financing application by Islamic banks based on value-creation instead of mere credit scoring which would benefit business propositions from new sectors such as SMEs. Another example is refocusing, strengthening and repositioning of personal financing 3/4  BIS central bankers' speeches  by Islamic banks to best meet the needs and circumstances of customers.