Zeti Akhtar Aziz: Sustaining Islamic banking and finance growth through effective dissemination of information Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the official launching of the Islamic Banking and Takaful Expo: “Sustaining Islamic banking and finance growth through effective dissemination of information”, Kuala Lumpur, 8 October 2004. *  *  *  “The domestic Islamic financial system has reached an unprecedented expansion, successfully operating in parallel with the conventional financial system. The further development of Islamic finance requires for it to be endowed with the right pre-requisites to perform as an effective, efficient, resilient form of financial intermediation that supports wealth creation and sustainable economic growth. At the heart of this effort is the necessity to meet the financial requirements of consumers and businesses. While significant progress has been achieved in the development of the overall Islamic financial infrastructure, financial institutions and products that has been reinforced by the strengthening of the regulatory, Shariah and legal dimensions, there has also to be the effective dissemination of information to promote greater nationwide awareness on Islamic finance, to create a more well-informed society on the virtues and benefits of the financial services being provided. Providing information and knowledge is thus integral in our endeavor to steer the development of the Islamic financial system in Malaysia.” Tuan-tuan dan puan-puan, Saya bersyukur dapat bersama para hadirin semua di Majlis Pelancaran Ekspo Perbankan Islam dan Takaful 2004, anjuran Persatuan Institusi Perbankan Islam Malaysia (AIBIM).

In making financial decisions, consumers require various information and details about the processes and documentation involved, the relevant fees and charges to be incurred and the risks and benefits of each type of financial product or service. This will allow consumers to be aware of the opportunities available, actively manage their financial position while at the same time, safeguard their financial future. The avenues to seek redress must also be easily accessible and available. Of importance is the need for all parties involved in the Islamic financial transactions to understand and appreciate the unique characteristics and features of Islamic banking and finance. Clear understanding on the conduct of the Islamic financial transactions would lead to the appropriate execution of Islamic financial contracts that truly reflect the Shariah tenet. Active consumerism will also prompt the desired efficiency in the Islamic financial industry. For the Islamic financial institutions, understanding the dynamics of customer segmentation, building customer relationships and addressing the requirements and preferences of specific segments are vital not only for strengthening the existing customer relationships but also to secure new businesses. This would  BIS Review 56/2004  1  contribute towards the expansion and sustainability of the market share of the Islamic financial activities. Fundamental to achieving greater customer-centricity is to ensure that the processes, and workforce orientations, are aligned towards meeting customers’ expectations and delivering superior services. This needs to be effectively communicated, shared and understood by all levels of the workforce, in particular, those at the front office.