Shaping Islamic Finance: 4 APAC FinTechs to Watch

By Gloria Mathias

The global demand for Sharia-compliant financial solutions is expanding. Islamic finance is projected to reach over $3.69 trillion by 2024, according to the 2020 Islamic Finance Development Report jointly released by Refinitiv and the Islamic Corporation. This growth reflects a shift towards ethical and socially responsible investing, appealing not only to Muslim investors but also to those seeking sustainable and inclusive financial practices.

In the APAC region, with its significant Muslim population across countries like Indonesia, Malaysia, and Pakistan, Sharia-compliant investing is gaining traction. The rise of Sharia-compliant FinTech is about catering to the growing Islamic finance market and promoting financial inclusion. Many individuals in predominantly Muslim countries remain unbanked or underserved due to a lack of trust in traditional financial institutions. By offering accessible, ethical investment platforms, FinTechs are bridging this gap and enabling broader participation in financial markets.

This trend aligns with the broader goals of economic growth and digital transformation for the APAC region. As FinTech companies innovate to meet the unique needs of Sharia-compliant investors, they are also boosting investor confidence, promoting sustainable practices, and contributing to the region’s financial ecosystem.

4 FinTech platforms supporting Sharia-compliant financing in APAC: 

• ALAMI 

ALAMI is the first Sharia challenger bank based in Indonesia. It launched in 2019 as a Sharia-compliant peer-to-peer lending platform that connects Sharia-compliant lenders with SMEs needing halal financing. It screens businesses to ensure compliance with Islamic finance principles and offers a transparent platform for ethical financing.

• PayHalal

PayHalal is an Islamic payment gateway and merchant acquirer designed for halal transactions. It ensures that businesses and customers engaging in eCommerce adhere to Islamic guidelines. By certifying businesses and ensuring Sharia compliance for payment systems, it provides a secure, trusted platform for halal eCommerce.

• Kapital Boost

KapitalBoost is a Sharia-compliant crowdfunding platform that helps SMEs raise funds through ethical financing structures like profit-sharing. The platform enables Muslim investors to support businesses while adhering to Islamic finance principles. Operating in Singapore and Indonesia, KapitalBoost fosters SME growth in the APAC region by offering ethical financing solutions.

• Sedania As Salam Capital

Sedania As Salam Capital Sdn Bhd (SASC), a wholly-owned subsidiary of Sedania Innovator Berhad, is a technology provider that empowers financial institutions with Islamic FinTech solutions. It specialises in Sharia-compliant digital financing solutions, particularly As-Salam Financing, which uses a Tawarruq-based platform for Islamic banks and financial institutions. By offering digital platforms that streamline Islamic financial transactions, they help banks deliver faster, more efficient services while adhering to Sharia principles.