and widespread penetration of technology - driven applications in nearly every segment of the financial sector is already upon us. fintech innovations are fundamentally altering the way we experience and deliver financial products and services. according to a recent mckinsey report, the number of fintech start - ups globally has now exceeded 2, 000, more than twice the number less than a year ago. such growth is expected to continue as innovators tap into the preferences of millions of technology savvy millennials who are more receptive to new ways of consuming financial services. fintech is challenging the status quo of the financial industry. new business models will emerge. delivery channels will challenge existing norms. transaction costs will be reduced. rather than looking at the fintech revolution as unwelcoming, financial institutions ought to embrace it as an opportunity. in the area of payment services for example, e - payment has revolutionised payment mechanisms through convenient and accessible channels. in islamic finance, a recent initiative in malaysia has been the investment account platform ( iap ) that was launched in february this year. it is an important example of a collaborative strategy by the industry to bring game - changing innovations to the market. the iap is the first islamic bankingintermediated internet - based platform that combines the expertise of islamic banks and efficiency of technology to channel funds from investors to viable economic ventures. it promotes risk - sharing financial transactions by providing the platform for musharakah and mudharabah - based equity financing. the platform has strong prospects to support crossborder investments and increase global connectivity through the participation of banks worldwide. the potential impact of such technological disruptions is significant. an estimated 10 % to 40 % of overall banking revenues could be at risk by 2025 due to fintech innovations outside banking institutions that are able to achieve a significant pricing advantage. in islamic finance, like the investment account platform in malaysia, fintech has immense potential to be the next game changer. it offers opportunities for industry players to radically transform operational models by adopting digitisation strategies that will be able to deliver much greater scale or alternatively, a high degree of specialisation. it also opens up new possibilities for improving efficiencies, reducing wastage and enhancing the customer experience. all of this adds up to stronger market positioning and financial performance. bis central bankers ’ speeches to further explore and leverage or these opportunities, plans are currently underway to organise an inaugural islamic finance symposium on innovation that will provide a platform for the academia and industry

the central bank to develop islamic finance spans over three decades. the invaluable contributions by earlier governors of the central bank laid the foundations for the development of an international islamic financial centre in malaysia, serving both global and domestic demand. their visionary leadership in this journey not only ensured that our fundamentals were strong, they had significantly raised the global profile of islamic finance with malaysia setting an example that would encourage development in other countries. in the early 1980s, governor abdul aziz taha has laid down the foundations for the establishment of the first islamic bank and the issuance of the first government sukuk. the dual financial system that we see in malaysia today is the realisation of the vision framed by governor jaffar hussein way back in 1990. from there on, we continued to advance on many fronts, including the establishment of the shariah advisory council under the leadership of governor ahmad don. significant milestones were achieved with governor zeti at the helm of the central bank. during this period, islamic finance morphed from a niche segment into the financial mainstream, and from a largely domestic - centric focus to one of bis central bankers ’ speeches global relevance. in particular, her immense contributions have enabled us to achieve much more to expand the frontiers of islamic finance as a global community. i wanted to take the opportunity today to acknowledge their tremendous contributions. moving forward, the bank will continue to build upon these foundations in making advancement that will further strengthen islamic finance ’ s growth trajectory. in the same way that past efforts have delivered solid growth in the industry and significantly enhanced islamic finance potential for future growth, our present actions will largely determine the future prospects of islamic finance. as was the case in the past, we will continue to require innovative solutions and collaborative strategies to take islamic finance to the next level of development. positive transformations taking place around us will continue to pave the way for new growth opportunities for the industry. collectively, we need to understand these developments and leverage on them to advance economic and social goals, and manage the attendant risks. today, i would like to touch on three key issues, the rise of fintech and its impact on islamic finance, the growing importance of responsible, inclusive and sustainable finance and the preconditions necessary to sustain a value - based financial system. one of the most significant transformational developments of our era is the technological revolution. more specifically, the fintech revolution was made possible by maturing social, mobile and cloud technologies. the digital revolution