Fintech Innovations to Drive Islamic Banking to Record $4 Trillion, Says Report
Assets in Islamic banking have surged from $1.8 trillion to $2.8 trillion in the last four years, according to the report by Red Mad Robot, a digital partner for major businesses in the fields of fintech, telecom, retail, insurance, e-commerce, medicine, and industry, said.
The report, providing in-depth insights into various aspects of the evolution of Sharia-compliant banking, dwelt at length on how fintech firms are reshaping Islamic finance, new digital solutions and services revolutionising the operations of Islamic banking and the main challenges of Islamic fintech and the digitalisation of Islamic banking.
The report also said countries such as the UK, Russia, Kazakhstan, and Australia are poised to set new standards in Islamic banking.
The report delves into the variation in banking systems across countries, where some are entirely based on Sharia principles, while others incorporate Islamic financial services within conventional banks.
“Digital transformation and fintech in Islamic banking present many opportunities, as Islamic financial institutions seek to differentiate their business while ensuring competitive prices to capture new market space and generate economic demand,” it said.
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The global Islamic fintech market, estimated at around $79 billion in transactions in 2021, is expected to reach $179 billion by 2026, the report said.
The largest fintech markets are in Saudi Arabia, Iran, Turkey, UAE, Malaysia, and Indonesia, with Indonesia leading in the number of Islamic fintechs.
Crowdfunding, investment platforms, robo-advisors, payment services, digital banks, smart contracts, blockchain, cryptocurrencies, information security in the financial sector, and insurtech are promising directions for the digital transformation of Sharia-compliant banking, the report said.
Source: arabianbusiness.com
