Banks Need to Ramp up Efforts To Win Over Digitally Savvy Muslim Customers
by Fintech News Malaysia August 24, 2021Banking and financial services platform Mambu released its research series named the Disruption Diaries which seeks to understand what people think of the key trends driving the development of financial services.
In Mambu‘s third edition, the firm conducted a global survey of 2,000 members of the younger Muslim community mainly the Gen Z and millennials to understand what Islamic finance means to them, as well as their expectations of this sector.
As one of the fastest-growing financial industries, Islamic finance continues to grow in size and influence spreading far beyond the Middle East into Muslim-majority countries in Asia and Africa, as well as parts of Europe and beyond.
As a sector, total assets have exceeded US$2 trillion and are expected to reach US$3.8 trillion by 2023.
Greater awareness of Islamic finance, alongside improved legal and regulatory structures in many markets, is supporting the growth of the sector.
A closer look at Malaysia
Malaysian Islamic banks, and conventional banks offering Shariah-compliant products, have a tremendous opportunity to capture the hearts and wallets of young, digitally savvy Muslim customers via innovative digital products and services, but competition will be fierce so organisations will need to act swiftly.
Survey results
Ethical banking is a way for consumers to manage their finances while promoting environmentally and socially conscious practices.
Mambu’s research shows that ethical motivations are a primary driver for the younger Muslim community. 74% of respondents confirm it is important that the investments their bank makes using their money are ethical.
As an API-driven Software-as-a-Service (SaaS) platform, Mambu is uniquely positioned to support your organisation’s Islamic banking ambitions. The full report is available here.
Featured image credit: Photo by Chester Ho on Unsplash
