AI poised to reshape Islamic finance with cost and efficiency gains: Mal Bank (www.cnbc.com)

Mal Bank, an emerging Islamic finance institution, is set to leverage AI technology to revolutionize banking practices, enhancing cost-effectiveness and operational efficiency. Abdallah Abu-Sheikh, the bank's Founder and CEO, announced plans to launch by 2026, aiming to capture a substantial market serving approximately 20 billion people. With Islamic finance historically proving more profitable than traditional banking over the past decade, Mal Bank anticipates reaching break-even status sooner than expected. The incorporation of AI in Islamic finance could significantly streamline processes such as compliance, risk assessment, and customer service, allowing for more personalized banking experiences while reducing operational costs. This strategic move not only positions Mal Bank to compete effectively in a rapidly evolving tech landscape but also highlights the growing significance of AI and machine learning in addressing the unique needs of Islamic finance—a sector often hampered by regulatory complexities and conservative practices.