Wahed Inc, an Islamic Fintech backed by Saudi Aramco, to Purchase UK-based Digital Banking Startup

US-based Wahed Inc, an Islamic-finance Fintech agency that’s backed by Saudi Aramco, is reportedly planning to amass Niyah Ltd, a UK firm that operates a digital banking platform for the Muslim group.

Wahed’s administration famous that they’re hoping the acquisition will permit them to supply a wider vary of services. Wahed intends to turn out to be a one-stop-shop for Islamic or Shariah law-compliant digital monetary providers.

The monetary phrases of the transaction haven’t been shared publicly.

Based in 2017, Wahed operates a digital funding administration platform within the US. The platform ensures that its asset portfolio doesn’t embrace investments in companies that aren’t permitted in Islam (firearms, playing, alcohol, and a number of other different actions).

The deal ought to permit Wahed to supply extra interest-free monetary merchandise, like digital financial institution accounts and debit playing cards in the UK and in different jurisdictions.

This announcement arrives as many extra tech-focused corporations attempt to benefit from the rising demand for monetary merchandise meant for the Muslim group. Notably, Saudi Aramco Entrepreneurship Ventures has invested $25 million into Wahed’s operations.

Islamic or Shariah regulation prohibits firms or companies from charging curiosity. So as to make digital banking Shariah-compliant, Wahed will let purchasers maintain minimal quantities of their funds in money in order that deposits can’t be used for lending. The corporate says it should make investments the remaining quantity.

Firm CEO Junaid Wahedna, mentioned that “all the cash you retain with us can be invested in line with your choice.”

Waheed, which has over 100,000 prospects, goals to concentrate on addressing the rising demand for moral monetary merchandise from a wider consumer base (which can embrace sure non-Muslim communities as effectively).

Wahedna mentioned that there’s “no purpose why we should always not broaden out the scope of our attain to everybody.”

Wahedna additionally talked about:

“Our imaginative and prescient of making a parallel monetary ecosystem that helps minimise wealth inequality is one step nearer as purchasers will now be capable to permit their financial savings to work for them with out partaking within the conventional cash lending infrastructure. It’s an ideal match for us and for our prospects.” 

He additional famous:

“Outdoors the Islamic world the UK has a protracted standing popularity as a number one fintech hub and a significant centre for Islamic finance. Buying Niyah and launching our first banking providers right here allows us to leverage the alternatives that Britain’s distinctive monetary hub brings, and to faucet into a large and underserved buyer base that’s receptive to our service providing.”

Ali Abdulkadir, CEO of Niyah, remarked:

“Wahed has a superb observe document for delivering providers to an underserved market, and with the help of Railsbank, it may well proceed to develop its banking providing past the UK.”