FinTech: Millennials Driving Demand For Shariah (Islamic) Banking – Mambu
Mambu recently conducted a survey of the younger Muslim community and their views of Islamic finance.
A survey by SaaS cloud banking platform Mambu found that over half (53%) of young Muslims said they would choose Islamic banking – if barriers to entry were removed, and it became more accessible.
Mambu surveyed 2,000 millennial and Gen Z consumers globally and released the results in a report titled ‘Faith and finance: The changing face of Islamic banking.’
It appears that consumers are making more sustainable and socially conscious choices in the wake of the pandemic.
Furthermore, younger consumers are demanding both financial change and inclusion.
Elliott Limb, Chief Customer Officer at Mambu, said: “Younger consumers are demanding financial change, and the Islamic finance market is no exception. Our research illustrates how Islamic banking trends mirror the demand we’re seeing for ethical banking practices more broadly.”
“With 1.9 billion Muslims underserved globally, it’s clear that there’s a huge opportunity for both Islamic and conventional banks, alike, to provide compliant solutions for the modern consumer,” he added.
- 76% of young Muslims said the availability of online banking options was a dealbreaker
- 32% claimed they do not have access to banks that adhere to Islamic principles
- 70% said that it’s important they can make an investment without having to see someone in person
- 74% said it’s important they can access their bank’s services via a mobile app
- 80% said it’s important they can access banking services anywhere, at any time
- 78% thought customer service was important
- 74% said it was important the investments their bank makes using their money are ethical
Miljan Stamenkovic, General Manager MENA at Mambu, said that younger generations are set to account for three quarters of all Islamic banking revenue by 2023.
Indeed, total assets in the Islamic finance sector have exceeded $2 trillion in recent years and are expected to reach $3.8 trillion by 2023.
“The industry must listen to the demands of these digital natives, both in the Middle East and beyond, if it wants to stay ahead of the curve.”
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