A technology perspective
Modern Islamic finance effectively began in the 1960s but it only came of age in the last 20 years when banks started to offer sophisticated Islamic products and finance arrangements.
Today Islamic finance technology solutions have matured and there is a concerted effort across the industry to standardize Sharia-compliant products. We will look into the various challenges a financial institution might face when considering opening a fully-fledged Islamic bank or just a window operation, i.e. a conventional bank offering Islamic products.
But let’s first start with some background information on Islamic finance for the readers who might not yet be familiar with the concept.
Understanding Islamic finance
Islamic banking is governed by the Islamic law known as Sharia that was formed some 1,400 years ago. It aims to provide banking services while staying within the Sharia boundaries. The law has been specifically formulated to eliminate malpractice and exploitation while encouraging healthy trade and commerce. While Sharia is a complete set of laws that are to be followed by every Muslim, only a restricted portion pertaining to banking transactions applies to Islamic finance.
Inside magazine issue 6, October 2014
Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.
Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).