Bank Negara Malaysia launched the Value Based Intermediation initiative in 2017. In the same year, JP Morgan Private Banking released a wealth report highlighting that about USD60trillion is changing hands from the first generation (who separated business from charity) to the second generation whose ethos is totally different. For this group, just making money is not interesting. They’d like to make money and do good!

In this concise online course, we will examine the strategies and impact structures adopted by international banks to tap into this new wealth dynamic. From Ocean Engagement Fund to the World Bank Rhino Bonds, key factors were in play at financial institutions, not least investor engagement, collaboration with outcome payers, leadership and passion.

In the second part we look into the increasingly active Islamic social finance segment. In 2019, in search of alternative funding, UNHCR tapped into the power of Zakat to fund their program. In the same year, Islamic Relief launched their Qurbani+ program to uplift widows and orphans by bringing them into the livestock value chain. In Malaysia, the Smart Sawah Berskala Besar Asnaf (SBBA) by LZNK showcases how leadership plus a more effective use of Zakat assets are potent recipes for success.

• Key learning outcomes:
  • Review the factors that are driving the development of social finance.
  • Analyse strategies adopted by international banks in structuring impact and social finance deals.
  • Examine Islamic social finance structures that provide long term impact.
  • Discuss opportunities and challenges for the development of Islamic social finance.