Islamic banks urged to go digital for reach

Kuala Lumpur

HONG Leong Islamic Bank's chief executive officer sees small steps in digital banking as the key to leapfrogging rivals with hundreds of branches.

The Malaysian lender, which won an award for digital innovation from Hong Kong-based The Asset magazine, introduced an application that allows mobile devices to be used to pay for noodle lunches or cups of coffee, CEO Raja Teh Maimunah Raja Abdul Aziz said in a July 14 interview. The bank plans to introduce electronic remittance services via handsets for Indonesians working in Malaysia next year.