There is great potential for fintech to play a significant role in the Islamic finance industry and assist in the market's growth and reach over the next decade. In October 2017 , Foot Anstey assisted Liberis, a fintech company, with their entry into the Islamic finance market through their unique offering of a Sharia compliant Business Cash Advance Product tailored towards small and medium sized businesses. Also in 2017, Yielders became the first Shariah compliant fintech firm to be authorised by the FCA allowing their crowdfunding platform to reach a wider range of investors.
Although the UK are currently ranked second in respect of Islamic fintech start-ups, there is still a lot that can be done to maintain and defend our position. The creation of the Islamic Fintech panel in January 2018, with the government as a panel observer, is a promising start. The panel are committed to dealing with various market-related issues such as lack of UK Islamic Bank penetration and an absence of capital. Islamic Banks will need to take immediate steps to realise and utilise the potential of the Islamic fintech industry over the next few years.
Malaysia, the UK and Indonesia are leading the race, ranking first, second and third respectively by number of Islamic fintech startups, says Bloomberg Intelligence.