##funding in the rise of virtual reality ( vr ), which was largely ignored by traditional funders after its disappointing performance in the 1990s. oculus rift or the vr technology as we know would never have happened without crowdfunding. such success stories can be an inspiration for our smes. with smes in malaysia facing difficulty in obtaining capital and mezzanine financing, crowdfunding and p2p platforms can be further explored to meet such funding needs. third, the matching of funds enabled by fintech also has great application within the social financing space. in particular, we see the potential of digitising the collection and utilisation of zakat, waqaf and sadaqah as holding great promise. the efficiency and transparency enabled by technology not only provides greater convenience to customers, but more importantly, builds public trust and confidence in the system. in turn, this will see wider participation and greater contributions towards social impact initiatives such as those to improve education, widen access to healthcare and extend humanitarian relief. we are already seeing encouraging developments in this space. for example, skolafund raised over rm200, 000 in 2016 to fund 25 students from less - privileged families studying in universities and colleges in malaysia. meanwhile, launchgood, has raised usd9 million in over 20 countries and funded 1, 300 social impact projects, ranging from disaster relief and humanitarian aid, to water and housing infrastructure in developing countries. in malaysia, our islamic financial institutions are in a good position to benefit from the growth multipliers that fintech offers. what is required is for the industry to invest in technology and talent to accelerate the adoption of technology. key to making this a success is for the industry leaders and practitioners to transform their fears into familiarity ; to embrace the digital transformation to re - engineer the entire organisation. in reimagining their businesses and viewing disruptive technologies not as a threat, but as an enabler, industry players can make the necessary operational, structural and cultural shifts. the tone has to be set from the top. the innovation agenda must be a boardroom priority, and islamic financial institutions must be willing to allocate capital and resources to make this work. a further imperative to this is to inculcate and infuse a culture of innovation permeating throughout the organisation. the islamic finance industry should adopt the motto of “ dare to ideate ” – to become founders and leaders of big ideas ; to be able to synthesise the needs of customers ;

be construed as implying that the responsibility for good conduct rests with the public authorities. for another, rules may create opportunities or incentives for legal or regulatory arbitrage. when banks work to find creative ways around rules, it can have an insidious effect on culture. as i see it, an organization ’ s culture gets into trouble when it equates “ what is right ” with what is legally permissible, and when “ what is wrong ” becomes viewed as what is legally impermissible. a proliferation of rules — followed by the gaming of these rules — can be ultimately self - defeating. the end result may not only be a loss of trust, but also over time a more burdensome regulatory regime than would otherwise be the case. so, while regulation and supervision are necessary to ensure a resilient and robust financial system, i very much doubt that they are sufficient. they need to be supplemented by bank management that pays close attention to incentives, conduct, and culture. as i have previously said, incentives drive conduct, which establishes the social norms that help define a firm ’ s culture. 11 the first step is for firms to evaluate the incentives that they have in place with respect to personnel evaluation, compensation, and promotion and to make sure they are consistent with the type of behaviors they want to encourage. for example, how are compliance violations treated in compensation and promotion decisions? are incentives in place to encourage people to speak up early, when problems are smaller and more manageable? when employees do speak up, how are they subsequently treated? my colleagues and i at the new york fed have commented previously on the essential role of good culture in a bank ’ s reputation, financial condition and performance, and in customer confidence and trust. 12 as we have argued, “ cultural capital ” — through its ability to limit misconduct risk — can be an important bulwark to a firm ’ s financial capital. 13 culture is often viewed as a “ soft ” topic, but i would disagree. the financial penalties associated with misconduct are anything but soft — with bank fines since the crisis estimated at more than $ 320 billion as of year - end 2016. 14 the hit to a bank ’ s reputation from misconduct can also be quantified through, for example, the associated impact on its share price or funding costs. culture should be about concrete incentives and behaviors that help achieve specific goals, implying that it should not be viewed as a “ soft ” issue. i have argued on several