Islamic Finance

Global Islamic Fintech Report 2019: Highlights

The Global Islamic Fintech Report 2019, produced by London-based digital finance firm Elipses in collaboration with the UK Islamic Fintech Panel, was released on Tuesday (Dec 10).

The study is based on a survey of 180 companies worldwide spanning five categories: fintechs (50%), ecosystem players such as incubators and accelerators (22%), service providers such as consultancies (16%), financial institutions (8%), and investors (4%), Elipses Co-founder and Principal, Abdul Haseeb Basit told Salaam Gateway.

The biggest group of respondents, at 38%, is based in the UK, followed by 28% in the Middle East, 14% in Other Europe, 12% based in Southeast Asia, 6% were from North America, and 2% from Other Asia.

Here are the highlights from the report:

  1. Top five expected growth sectors for 2020: P2P/Crowdfunding, Challenger banking, Blockchain/Crypto, Robo-advisory/Personal finance management, and Lending.
  2. Founding jurisdictions: Islamic fintechs cited the strength of the local conventional and Islamic finance sectors as very important factors in choosing their founding jurisdiction.
  3. Islamic fintechs identified a lack of access to capital as the biggest barrier to scaling.
  4. 76% of Islamic fintechs are already or are expecting to be Shariah-certified, however 68% felt certification wasn’t necessary to be considered Islamic.
  5. The preferred method of engagement by Islamic economy institutions is partnerships, with more institutions expecting to do so in 2020.
  6. 85% of Islamic fintechs have or are seeking direct or indirect regulated status or expected to be regulated in some form in the near future.
  7. Southeast Asian countries are expected to provide the highest growth potential in 2020 for Islamic fintech.
  8. Partnerships are a key growth strategy for Islamic fintechs with the other Islamic fintechs and Islamic banks being the most sought after partners.
  9. 26% of Islamic fintechs surveyed have at least one female founder with an average female staff base of 24%.

The full report can be downloaded from this link.

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