back Back

4 Islamic banks offering digital banking services in the UK

By Gloria Methri

May 06, 2024

  • Al Rayan Bank
  • Challenger Bank
  • Dubai Islamic Bank
Share

Islamic Banking, Sharia-compliant Banking, Digital Banking, UKIslamic 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 notice.

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

Previous Article

May 06, 2024

Astra Tech’s PayBy launches Palm Pay, to enhance payments in UAE

Read More
Next Article

May 06, 2024

Kaspi.kz joins forces with Alipay+ to facilitate QR payments across China

Read More








IBSi Daily News Analysis

Cybersecurity, financial services

May 17, 2024

Al Rayan Bank

Most of KSA organizations uses AI in their cybersecurity strategies, study shows

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

May 17, 2024

Niyogin acquires ‘Superscan’ from Orbo.ai to propel AI-led neo-banking

Read More

May 17, 2024

FinTech Focus: Catch latest developments of the week

Read More

May 17, 2024

Mastercard, Standard Chartered, Mox & Libeara to support tokenised assets

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q1 2024
Global Digital Banking Vendor & Landscape Report Q1 2024
Know More
Wealth Management & Private Banking Systems Report Q1 2024
Wealth Management & Private Banking Systems Report Q1 2024
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q1 2024
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023