Malaysia’s forward-thinking regulatory policies, tech-savvy consumer base, and nascent startup ecosystem have ushered in a transformative era for its financial landscape, expected to balloon to $53.89 billion this year.

At the heart of this, are some of the most innovative industry underdogs underpinning the largest financial institutions in pushing the envelop on fintech advancements.

audax, a Standard Chartered-backed digital banking tech solutions provider accelerating banking modernisation at scale across Malaysia, is already tapping into the nation’s burgeoning and rapidly maturing Islamic finance market.

audax was recently appointed by Maybank Islamic to lead the digital transformation of its Islamic finance services, marking a notable entrance to the Malaysian Islamic banking sector.

“2025 is a year for strategic growth for audax as we intensify our efforts across key markets in the Asia Pacific and the Gulf Nations,” Indra Salim, Director of Sales and Partnerships at audax, told TNGlobal in an interview.

“Building on the momentum from late last year, we forged several strategic partnerships across the GCC, embedding our technology within the region. Notably, we partnered with the digital innovation arm of Riyad Bank, Jeel, as well as next-generation core banking provider, Tuum, to revolutionise the digital banking landscape in Saudi Arabia, the UAE and the region at large,” he said.

“Earlier this year, we unveiled our partnership with Maybank Islamic to spearhead the digital transformation of its banking services across Southeast Asia. With this region being home to some of the largest Islamic finance markets, our collaboration not only marks the start of our journey in modernising Shariah-compliant financial services but also our commitment to drive Banking-as-a-Service (BaaS) innovation across the region,” he added.

As the APAC and GCC regions continue to stand at the cusp of digital banking innovation, Indra said it is audax’s priority to be at the heart of these emerging markets, delivering the best-in-class capabilities and empowering financial services leaders to stay ahead in an increasingly competitive banking landscape.

Meanwhile, as the sector continues its exponential growth, how will startups like audax play a defining role in the nation’s next chapter as a fintech powerhouse? And how will innovations in Islamic finance set a new precedence of modernisation in financial services?

In the interview, Indra also shared insights on Malaysia’s strategic position in revolutionising Islamic finance.

With deep expertise in the evolving needs of today’s financial institutions, Indra was instrumental in forging audax’s strategic partnership with Maybank Islamic, driving innovation and expanding digital banking capabilities in the Islamic finance sector.

Below are the edited excerpts of the interview:

What are the plans audax has for 2025? Any further market expansion plans? Is there any other market audax is looking at besides Malaysia?

2025 is a year for strategic growth for audax as we intensify our efforts across key markets in the Asia Pacific and the Gulf Nations.

Building on the momentum from late last year, we forged several strategic partnerships across the GCC, embedding our technology within the region. Notably, we partnered with the digital innovation arm of Riyad Bank, Jeel, as well as next-generation core banking provider, Tuum, to revolutionise the digital banking landscape in Saudi Arabia, the UAE and the region at large.

Earlier this year, we unveiled our partnership with Maybank Islamic to spearhead the digital transformation of its banking services across Southeast Asia. With this region being home to some of the largest Islamic finance markets, our collaboration not only marks the start of our journey in modernising Shariah-compliant financial services but also our commitment to drive Banking-as-a-Service (BaaS) innovation across the region.

As the APAC and GCC regions continue to stand at the cusp of digital banking innovation, it is our priority to be at the heart of these emerging markets, delivering the best-in-class capabilities and empowering financial services leaders to stay ahead in an increasingly competitive banking landscape.

Malaysia has a strong foundation in Islamic finance. How is audax contributing to the nation’s transition into a leading Islamic digital finance hub? What opportunities does audax see in Islamic digital finance within Malaysia and Southeast Asia? What is audax’s vision for the future of Islamic digital finance in Malaysia and the wider region?

Malaysia is a critical market for audax to leapfrog into the rapidly expanding Islamic digital finance ecosystem. As a global leader in Islamic finance, Malaysia has once again topped the Islamic Finance Development Indicator (IFDI) ranking in 2024.

Coupled with its rich fintech landscape, the nation has firmly established itself as a frontrunner in this burgeoning sector. With Islamic banking accounting for 43 percent of the country’s total banking assets as of early 2025, and its Islamic fintech market valued at approximately $11.1 billion—projected to exceed $23 billion by 2027—audax is strategically positioned to meet the surging demand for accessible, efficient, and Shariah-compliant financial services.

Through our partnership with Maybank Islamic, we are driving the digital transformation of its banking services across Southeast Asia. This collaboration not only strengthens Malaysia’s leadership in Islamic finance but also allows us to scale Shariah-compliant digital banking solutions across the wider region.

The Islamic finance market in Southeast Asia, particularly in the 2 most populous Muslim countries, Malaysia and Indonesia, represents a significant growth opportunity. With increasing demand for Shariah-compliant financial products and a rising digital-savvy population, there is immense potential to bridge the gap between traditional Islamic banking and modern, tech-driven solutions.

audax sees opportunities in enabling banks and financial institutions to launch digital Islamic products at scale, from digital savings accounts to embedded financing and wealth management solutions. Leveraging our proven track record in Indonesia, audax is actively powering these twin engines of Islamic finance, aiming to accelerate financial inclusion and innovation across the region.

Our vision is to become the leading ecosystem enabler for the digital banking industry at large, with Islamic finance as a key pillar, particularly in this part of the world. By empowering financial institutions to deliver seamless, Shariah-compliant digital experiences while reducing operational costs and improving accessibility, we are helping Malaysia solidify its position as a global hub for Islamic digital finance.

At the same time, we are driving broader digital banking innovation across Southeast Asia, supporting the region’s participation in the rapidly growing $7.53 trillion global Islamic finance market.

Ultimately, audax is committed to delivering transformative solutions that drive financial inclusion and innovation, addressing the unique cultural and regulatory characteristics of key Islamic finance markets, and creating more inclusive financial services for the broader ASEAN community.

What are the trends you see in Islamic digital finance in Malaysia, and how is audax capitalizing on these trends?

Malaysia’s Islamic digital finance landscape is evolving rapidly, driven by several key trends:

● Leadership in Islamic Finance: Malaysia aims for parity between Islamic and conventional banking assets by 2030. With its thriving fintech ecosystem, the rise of new digital Islamic banks such as KAF Bank, and strong regulatory frameworks with government-backed funding, the country is well-positioned to lead the way in digital Islamic finance. audax supports this goal through partnerships like Maybank Islamic, delivering scalable, innovative digital banking solutions to maintain Malaysia’s leadership in global Islamic finance.

● Regulatory Support: The government’s 100 million ringgit allocation for innovation in Islamic finance, along with Bank Negara Malaysia’s Licensing Framework for Digital Banks and Labuan’s i-BOX sandbox, provide strong backing for Islamic fintech. audax is capitalising on these by offering scalable, Shariah-compliant digital banking solutions that align with these regulations.

● AI-Driven Innovation: AI is reshaping industries globally, and Islamic finance is no exception. Malaysia’s National AI Roadmap 2021-2025, along with Budget 2025’s RM10 million allocation to the National Artificial Intelligence Office, positions AI as a cornerstone of the nation’s digital transformation. audax can leverage AI to automate Shariah compliance, improve operational efficiency, and enhance risk assessment—crucial for the integrity of Islamic finance, which prohibits interest-based transactions and speculative activities.

What are the challenges and how to address them?

Islamic digital finance in Malaysia and the broader region faces several key challenges that must be addressed in order to realise its full potential.
A major hurdle is ensuring that digital finance solutions align with Islamic principles, such as the prohibition of interest (riba) and speculative transactions (gharar).

While interest in Shariah-compliant products is growing, inconsistent standards across markets create uncertainty. Balancing innovation with Shariah compliance is critical to fostering growth in the digital space.

Despite Malaysia’s strong regulatory framework, navigating the complexities of Islamic financial regulations (e.g., the Islamic Financial Services Act 2013) and broader banking laws can be difficult.

Digital banks, particularly new entrants, must also meet regulatory requirements for digital banking licenses while ensuring adherence to Islamic finance principles, adding operational complexity.

While Southeast Asia’s digital infrastructure is improving, gaps remain in rural and underserved areas.

Ensuring robust, secure, and scalable infrastructure for digital finance is vital to providing seamless services and reaching all segments of the population. There is also a knowledge gap surrounding Islamic digital finance products, especially in more traditional communities. Educating consumers about the availability and benefits of Shariah-compliant digital products is essential to accelerate adoption and ensure widespread access.

How are digital solutions enabling cross-border collaborations between broader Southeast Asian Islamic finance markets, with Malaysia as a central hub?

Digital solutions are transforming cross-border collaborations within Southeast Asia’s Islamic finance markets by dismantling traditional barriers and enabling seamless integration.

The ASEAN Digital Economy Framework Agreement (DEFA) fosters a conducive environment for Islamic financial institutions to expand across the region.

Cloud technology stands out as a pivotal force, offering scalable, secure infrastructure that empowers banks and fintech firms to rapidly deploy digital solutions, even in Southeast Asia’s fragmented regulatory landscape.

With the global Islamic banking software market projected to grow at a CAGR of 9.3 percent through 2030, these digital platforms are becoming indispensable for modernising and scaling Islamic finance throughout the region.

Within this broader shift, Malaysia is emerging as the key hub for cross-border Islamic digital finance, capitalising on its well-established Islamic banking sector, robust regulatory frameworks, and digital-first initiatives.

By integrating scalable cloud-based infrastructure and AI-powered automation, financial institutions can enhance operational efficiency, accelerate market expansion, and promote financial inclusion across Southeast Asia. The Maybank Islamic-audax-AWS partnership exemplifies this trend, extending financial inclusion to previously underbanked populations across ASEAN.

 

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