By Gloria Methri
Today
- Al Rayan Bank
- Challenger Bank
- Dubai Islamic Bank
Islamic Banking, or Sharia-compliant banking, is a type of ethical banking in which saving, investing, and acquiring loans are strictly compliant with Islamic principles. Unlike traditional banks, Islamic banks structure their products and services in accordance with Islamic finance standards.
The Islamic Banking sector is experiencing rapid growth, with an annual increase of 15-25%. Globally, there are 526 Sharia-compliant banks and nearly 1,500 Islamic finance institutions. Islamic banking is a viable alternative for those who want to align their finances with their beliefs.
In the UK, Islamic banking services have expanded over time, resulting in some well-established financial institutions.
Let’s look at four such digital banks offering Sharia-compliant services in the country.
Al Rayan Bank is an Islamic bank in the UK that offers commercial property finance and Sharia-compliant savings plans for individuals. The challenger bank offers multiple savings accounts for different requirements. It invests customer deposits in low-risk commodities, such as non-precious metals, Sukuk (Islamic bonds), and property. The bank does not use financial instruments based on speculation and instead invests in real assets. Depending on what type of account an individual requires, some of these savings accounts are fixed-term, and others are instant access or access with notice⁷.
Gatehouse Bank is another Sharia-compliant bank that operates in the UK and offers a range of services, including personal and business finance. Gatehouse’s Easy Access Account requires a minimum deposit of £1 and offers unlimited withdrawals. The Easy Access Account can be opened online. To comply with the Islamic law, Gatehouse does not pay out interest on deposits in the Easy Access Account, or its other savings schemes, instead the bank operates on a variable profit basis.
Nomo Bank is a UK-based digital bank that offers international banking services. It is designed for people with international lifestyles who want to manage their money easily through smart, simple, and secure technology. Nomo is part of the Bank of London and The Middle East plc (BLME) and is backed by Boubyan Bank. The Nomo app combines these elements with the latest banking technology, creating an immersive, international digital banking experience for our clients.
QIB UK offers Sharia-compliant financing and investment products for both Muslim and non-Muslim clients. QIB UK’s current account offers deposits in GBP, while their Instant Access Savings Account is offered in GBP, USD and EUR. QIB (UK) creates partnerships with clients to earn Halal earnings through a range of Sharia-compliant investment and funding techniques, including Murabaha, Mudaraba, Ijarah, Istisnah and Musharaka.
ALSO READ: Global Digital Banking Vendor & Landscape Report Q1 2024
