#Innovations in Islamic Banking and Finance

The next phase of growth in Islamic banking will be driven by differentiation driven by innovation. There has been a remarkable 11% growth in global Islamic banking assets over the last 5 years. The opening up of a regulated Islamic banking market has allowed for banks to serve an untapped segment. Islamic banking drove innovation through a new set products and services that were Shari’ah compliant. In the future, developing a distinctive customer segment such as age groups or focus groups will be critical. A part of the customer base is quite indifferent to the Shari’ah angle, but more sensitive to the overall experience and the value proposition offered. While customer segmentation, product positioning and partnerships are all helpful, the piece that can make a significant impact is the technology-driven innovation, that is the right omni-channel experience for the customer.