Fintech is a crowded space. But a new subgenre is emerging to attract the world’s 1.8bn Muslims with a Shariah-compliant alternative.
Young Muslims want in on Europe’s fintech scene. Their pitch is that Muslims, who make up 20% of the world’s population, have been underserved not only by traditional banks, but also by modern fintechs.
Shariah law forbids Muslims from earning or paying interest, engaging in “unequal transactions” or supporting “unethical” investments. Most European financial institutions therefore do not cater for halal (permissible) trading, savings, insurance or mortgages, and brick-and-mortar Islamic banks like UK-based Al Rayan have been slow to catch up.