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Digitisation is helping Islamic banks reach these populations and provide them with products that are aligned with their ethical codes.

Fintech is one of the main three accelerators for the finance industry in achieving fast growth and in providing easier and more efficient transactions while enhancing the process operations and governance.

What’s driving the adoption of fintech in Islamic banking?

The younger generations will contribute to ~75% of banking revenue in the Middle East (Alvarez & Marsal, 2019), and Sharia-compliant banks are stepping up digital investments to reach this demographic.

In the next five years the demand will increase to 60% for people aged 25 to 50.


Islamic banks should tap into, and address, the demands of this tech-savvy customer base for greater transparency, highly-personalised products and seamless experiences.

To succeed and grow, a modern technology stack must lie at the heart of financial service companies. Banks face technical debts when technology solutions have become non-functional and outdated technology.

Unresolved technical debt can lead to excessive costs and compromised business agility, so Islamic banking needs to upgrade their technology, adopt agile ways of working and modernise their legacy systems.

How does composable banking address these challenges?

Composable banking creates opportunities for Islamic banks to achieve multiple strategic objectives such as financial inclusion, best-in-class user experience, and ability to grow and scale rapidly.

It is a unique approach that separates different banking functions so they can be combined and recombined in different ways to deliver new services and customer experiences.

It’s one of the best ways to address demands while ensuring maximum reach to Muslim customers. It also increases agility, flexibility and streamlines processes, while reducing costs and boosting revenue.