know - your - customer ( kyc ) requirements, distributed ledger has the potential to address de - risking. robo - advisers could potentially be adapted to increase financial literacy and support customers in less accessible locations. the adoption of open application interfaces ( api ) facilitates a sharing environment whereby improvements build on existing innovations could shorten the time to market for more offerings. these are just a hint of many more examples that can be examined. what is needed is a rethinking of today ’ s most promising financial innovations for applications and new gains in financial inclusion. or to put it another way, we need to look at not just innovative financial inclusion, but inclusive financial innovation! identifying and working on our blind spots : driving efficiency gains to promote sustainable financial inclusion the reduction of poverty and greater social empowerment through financial inclusion has been one of most enduring achievements of our era. building on this momentum, our ambitions to pursue deeper financial inclusion over the next decade must be rooted in a deep understanding of the unique circumstances faced by the 2 billion people who remain excluded from the formal financial sector. this involves increasing the arsenal of financial inclusion tools that can overcome both the geographical and cultural barriers to deliver meaningful financial services to this segment. ultimately, the provision of financial services to the underserved and unbanked must be economically viable for providers. in this aspect, the smart usage of technology can be a game changer in lowering the cost of financial intermediation. bis central bankers ’ speeches this in turn will unlock opportunities to progress from the single, narrowly - focused products which are typically offered by traditional financial institutions today, to a broader range of relevant products and services tailored for the underserved segments. the ability to clearly demonstrate and consistently track efficiency gains over time can attract more providers into this space, while driving continuous efficiency improvements in delivering financial services to the underserved. great strides have been made in developing better measures of financial inclusion. we have moved beyond measuring access, to including measures of the usage and quality of financial inclusion services. we need to go further to include measurement on how efficiently we are increasing financial inclusion. such measures do not exist widely, if at all, and have yet to be systematically propagated. this blind spot ignores one of the most important aspects of innovative strategies for financial inclusion, which is the potential to drive down the costs of delivering financial inclusion initiatives. a framework for evaluating financial inclusion efficiency can provide powerful incentives to harness technology in the most optimal way. this should drive lower

pandemic has yet to peak in some countries, others including malaysia are heading towards periods of recovery while continuously managing the risk of virus resurgence. as this phase commences, islamic finance has significant potential and role to play. three attributes, at least, come to mind on how islamic finance can respond and contribute meaningfully towards sustainable and inclusive growth : first, islamic finance must be value - driven and impact - focused to deliver maqasid shariah ( the objectives of shariah ). the intrinsic values of islamic principles are aligned with a vision of economic growth that is balanced, sustainable and inclusive. shariah advocates for balance between wealth creation and wealth circulation. this in turn promotes fairness and ihsan in promoting the attainment of benefits as well as preventing harm. this crisis has indeed created a wealth of opportunities for islamic finance. shariah contracts can deploy a diverse range of capital that is risk - absorbent, patient and philanthropic in nature using instruments such as risk sharing, waqf and sadaqah to support inclusive finance. the flexible nature of such capital encourages allocation of resources towards entrepreneurial ventures and social impact projects that can improve and rebuild well - being of society. it can also to some extent help smoothen structural adjustments in the economy. globally, we have seen a silver lining in the response to the pandemic. in malaysia, the nation has rallied closer together to become more socially conscious not just in aspects of public health and welfare, but also in supporting the local economy. the islamic financial institutions in malaysia, in particular, have risen to the call to generate more positive impact through the “ value - based intermediation ” ( vbi ) agenda. participating islamic financial institutions have endeavoured to refine their products and services offerings in response to the need of their customers. eight islamic banking institutions ( half the total number of islamic banks in malaysia ) are offering microfinancing facility, utilising the micro enterprise facility established by the bank to increase access to finance for microenterprises with viable business. in terms of financial protection, more than 50, 000 participants have benefitted from various microtakaful products that provide affordable or free protection for the hard core poor and individuals with special needs. islamic financial institutions also continue to steward efforts towards building a greener financial system. in august 2020, the vbi community of practitioners in collaboration with the bank issued three sectoral guides on energy efficiency, renewable energy and palm oil for public consultation