Dear Islamic banks: An open letter from a concerned Muslim millennial who wants to practice Islamic values

Soukaina Rachidi is a young, educated Arab Muslim who confesses she doesn’t know very much about Islamic banking and Islamic finance, but would like to be more engaged because she cares about being Islamic. In this open letter, she addresses her questions and concerns directly to the Islamic banking industry.

Before I started researching for this article, I had never really thought about Islamic finance, or more specifically Islamic banking, because for me, it was just another option: another place to store my money so I can buy stuff with my debit card. However, perhaps unlike many young Muslims my age, I’m single, I don’t have student loans, car payments, or a mortgage. So, I don’t have to deal with many financial burdens. I also don’t feel the need to open an account in an Islamic bank, because I only use my bank to store money. I don’t use any other services that might put me in an “Islamic grey area”, or at least I don’t think so. But I know this might not always be the case.

My mother always tells me: “There is no such thing as not being able to afford your lifestyle.” I have always tried to live by the wisdom of her words by spending within my means. However, I want to get married one day and have children, so I know that my financial footprint will grow, because doing “the basics” is getting more and more expensive.

That being said, I believe there is a growing cohort of millennials, like me, who are actively trying to avoid debt by making smarter financial decisions, so we can have the freedom to travel and explore our professional options, while also providing for ourselves, and eventually, our families.

With all this in mind, I have a lot more questions than answers:

> What is the Islamic finance industry doing for young Muslims and entrepreneurial millennials who want to do good and prosper? 
> Are influencers in the Islamic finance industry willing, ready and able to engage us as stakeholders?
> How can Islam’s inclusive social and economic teachings be used to empower the fast-growing young Muslim demographic? 

These are not the only questions that need to be answered if the Islamic finance industry hopes to engage Muslim youth and promote inclusive, sustainable and economic growth. Here are four issues that, I believe, need to be addressed so the Islamic finance industry can become a positive driving force for change.

1. Lack of awareness about Islamic finance
As I mentioned earlier, I had never thought about opening an account in an Islamic bank, because to me, a bank, is a bank, is a bank. And at this stage in my life I’m not even looking beyond banking products and services. Growing up, I was never taught about the benefits of Islamic banking, in school or otherwise. Like most people, I just assumed that riba, or interest, was the only difference. So, when I had to choose a bank to open an account in, an Islamic bank wasn’t a priority because I didn’t know how it was different or better than a conventional bank. However, as more young Muslims like me try to align their spending and saving habits with their Islamic values this will have to change.

My questions:

> Does the Islamic finance industry understand me and my fellow young Muslims’ buying and saving habits enough to help us? 
> What are institutions and influencers in the Islamic finance industry doing to educate me and other young Muslims about Islamic finance? Do they believe their efforts are effective? 
> How are Islamic banks marketing services to me and other Muslim millennials? Are they where we are, on social media and social platforms, and do they speak our language enough to engage us?

2. Unclear definition of halal
Unfortunately, there is a lack of credible information out there about Muslim millennials and our views of the Islamic finance industry, which is astounding because we are the fastest-growing consumer demographic in the world. Having said that, the little information that I did find indicated that young Muslims are hesitant to use Islamic banks because they don’t feel they offer competitive services that are actually halal. It’s important to understand that for many young Muslims it’s about having an end-to-end product, or service, that meets the definition of halal in every aspect.

My questions:

> What does halal mean in the context of business? Does it merely imply that the end-product or service is halal? 
> Does the halal label also encompass banks’ Human Resource policies, purchasing practices, environmental practices etc? 
> How can Islamic banks promote transparency and show me and my fellow Muslim millennials that they are a better and halal alternative?

3. Perception: It’s not as ‘safe’ as conventional banking
What I find to be the biggest irony is that it appears that most Muslim countries don’t have well-developed or strong enough regulatory frameworks to support the growth of Islamic finance. This is certainly not an encouraging sign for young Muslimslooking for Shariah-compliant banking solutions. As a consumer, why would I choose a banking institution that is less capable of providing me with the financial services and consumer protection that I need? This is a matter that forces many Muslim millennials to resort to the use of conventional banking institutions, which are perceived as being the “safer option”.

My questions:

> How are the public and private sectors working together to implement policies that promote stronger regulatory frameworks for Islamic banks? 
> How can I, and other young Muslims, be involved in shaping the policies that will regulate the future of Islamic finance? 
> How can Islamic banks make their banking practices and services more relevant to me and other Muslim millennials? 

4. Where are the services for entrepreneurs?
The 2016 BNP Paribas Global Entrepreneur report estimated that the average millennial entrepreneur starts a business at 27 and will launch an average of eight businesses in their lifetime. This is unlike their predecessors, who started their first business at 35 and launched an average of four businesses in their lifetime.

Unfortunately, from what I have seen and read, most Islamic banks are not equipped to meet the needs of the modern boot-strapping entrepreneur. So, if Islamic banks want to become more relevant, they will have to start meeting the needs of young Muslim entrepreneurs.
My questions:

> How can Islamic banks make supporting entrepreneurial endeavors a part of their DNA? Is this even something they’re concerned with?
> How can key stakeholders in government, the Islamic finance industry and start-up ecosystem work together to create financial policies that promote “halal financing and entrepreneurship”?
> How can Islamic banks make themselves the go-to banking institution for Muslim and non-Muslim entrepreneurs? 

How do you feel about the Islamic finance industry? What challenges do you face when engaging its services? What do you think it should be doing differently? Share your opinions with Salaam Gateway’s social media and in the comment section below.

Soukaina “Soukie” Rachidi is the founder and author of the Soukie Speaks blog, which focuses on promoting inclusive social, economic and cultural narratives for young people in the Middle East and North Africa. Born in Rabat, Morocco, she has spent most of her formative years in Al Ain in the United Arab Emirates. Soukaina has also lived in Qatar, USA, and Argentina and speaks English, Arabic and Spanish fluently and French and Korean conversationally. She has a B.A. in International Relations from the University of Delaware. She is currently based in Al Ain, UAE. You can reach Soukaina on her Twitter handle @RevolYoution

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