Faith & finance: The changing face of Islamic banking
This is the Disruption Diaries, Mambu’s research series seeking to understand what people think of the key trends driving the development of financial services. In our third edition, we conducted a global survey of 2,000 members of the younger Muslim community (Gen Z and millennials) to understand what Islamic finance means to them, as well as their expectations of this sector.
As one of the fastest-growing financial industries, Islamic finance continues to grow in size and influence spreading far beyond the Middle East into Muslim-majority countries in Asia and Africa, as well as parts of Europe and beyond. As a sector, total assets have exceeded $2 trillion and is expected to reach $3.8 trillion by 2023.
Greater awareness of Islamic finance, alongside improved legal and regulatory structures in many markets, is supporting the growth of the sector.
The future is ethical
Organisations are increasingly being held to a higher standard, with their business practices under a microscope and regularly amplified over social media. Our research revealed that out of those who do not use Islamic banking, 53% stated that they would like to if it was more accessible.
Ethical banking is a way for consumers to manage their finances while promoting environmentally and socially conscious practices.
Our research shows that ethical motivations are a primary driver for the younger Muslim community. 74% of respondents confirm it is important that the investments their bank makes using their money are ethical.
It’s not ‘All or Nothing’
While some will choose to only use Islamic banks, many are flexible and open to investing in compliant or ethical portfolios within conventional banks.
The results show that only 47% of respondents feel it’s important for their entire bank to be Shariah-compliant, meaning that adding specific Islamic finance offerings as part of an existing portfolio would be well-received.
Let’s do Islamic banking
Mambu’s Shariah-compliant product enables Islamic financial institutions to enhance their offerings and increase brand loyalty by delivering a more personalised level of service - all in the cloud.
As an API-driven SaaS platform, Mambu is uniquely positioned to support your Islamic banking ambitions. If you can dream it, we can help you build it.Contact us