For many Muslims, their religious practice means they can’t use conventional finance products and must instead use Sharia-compliant alternatives. Demand for these products is increasing across the globe, but legacy providers have failed to keep up. At the same time, advances in technology have made it cheaper and easier to create Sharia-compliant products. That’s creating a huge opportunity for fintech.
A new report from BI Intelligence highlights some of the key concepts in Islamic finance, explains Sharia-compliant financial instruments in use, and explores how and why these options are struggling to meet demand. It explains the drivers behind increasing demand for newer products, as well as wider trends enabling the fintech opportunity. Finally, it presents case studies that illustrate the ways fintech is already being used to service the global Islamic finance industry, and outlines the hurdles fintechs face in making the most of the opportunity.
Here are some of the key takeaways from the report:
- Sharia-compliant financial products are approved by Islamic scholars and meet certain requirements like not offering interest or involving any risk. But the legacy Islamic finance industry hasn’t kept up…