Islamic Finance / Fintech Keeping Pace and Other Big NewsNovember 7, 2017 at 11:21 pm
There’s always a lot going on in the world of Islamic finance. There are lots of new developments that can be tied to the Ijara financing industry in the U.S. In a globalizing world, technology means criss-crossing borders is a regular event. Here are just some of the most recent goings-on.
Recent news alerts about Islamic finance and Fintech bring us the story of Ashar Nazim, the former head of Islamic finance at the big American consulting/accounting firm EY.
Islamic Finance Across The Globe
He recently talked about the importance of IT solutions for helping Islamic finance to spread across the globe. It’s an important concept for American Ijara mortgage solutions and those worldwide. The reason is simple. Mobile Sharia banking and other technologies allow localized Islamic banks to have a more far-reaching effect.
American Fintech Islamic Finance Join Forces
One of the big problems facing American fintech Islamic financing firms is the research and development costs. The resulting lack of scale is one of the issues that needs to be looked at. Put another way, there is a lack of partnerships in the fintech/ijara loans space. Currently, one of the only clear examples working in the United States is R3.
This database technology firm is leading a partnership that includes more than 70 financial institutions. They are currently developing blockchain for finance solutions that will include Islamic financing.
Traditionally, Sharia compliant mortgage loans have been slow to adapt to the digital wave. Adopting fintech solutions allows them to grab a bigger market share in a time where Islamic financing is seeing assets that are slowing down.
British Islamic Bank in Trouble
There is other news that’s important to Ijara loans and Islamic financing that’s relevant to the American landscape. Moody’s Investors Service (Moody’s) has assigned a negative credit rating to one of the first Islamic banks in Great Britain.
This isolated incident is worth keeping an eye on in North America and across the globe for several reasons. First Al Rayan Bank PLC was the first Sharia compliant UK bank in Great Britain. They were established in 2004 and took a large portion of their profits from home loans resting on Sharia principles.
Financial Meltdown in 2008
According to the report, their troubles started around the time of the financial meltdown in 2008. Again, this development is important because it ties into the first point made in this article about fintech.
The Islamic financing sector needs to be able to take advantage of any tool they can use the ride the wave of globalization and ride out market fluctuations.
Just passed by
Finally, it’s always good to end any report about Ijara finance on a positive note. Here in America, the Sharia compliant banking, mortgage loans and financing industry is healthy and strong. The IFN US Forum 2017 was held recently in New York City.
The event was hosted by PriceWaterhouse Coopers. Along with important keynote speakers like Senator Kevin S Parker from the New York State Senate, the form dealt with the need for greater transparency in Islamic financing in America.
Fintech in the Islamic Financing World
The event was held in October and one of the other important topics discussed was fintech in the Islamic financing world. There is no getting around the need for forward thinking Islamic finance institutions to look at this digital model.
Staying ahead of the IoT curve is an important part of American Islamic financing. Although some of the strongest centers for Sharia compliant loans are still in parts of the world other than America, technology can bridge gaps. Innovation in the digital space is clearly the path to partnerships and growth for Islamic finance.