IslamicFinance.de

Indonesia has seen a rapid growth of sharia fintech. In fact, the country’s Sharia Fintech Association already has 28 members, although it was established only in February. The interest is understandable given the size of the market for Islamic fintech. According to a 2017 Sharia Fintech Business Study published by Telkom Indonesia, the market size for sharia lending is worth up to Rp 7.3 trillion ($525 million). However, venture capital firms still seem hesitant about pouring capital into the sector. Mandiri Capital Indonesia investment head Aldi Adrian Hartanto believes that sharia fintech startups would need a more convincing business model and market approach in order to attract investment. Focusing on sharia market alone is not seen as a strong differentiator amid tight competition in the country. Malaysia, however, seems to see it differently. The country has made various efforts to provide funding for Muslim-focused tech. Thus, Malaysia was ranked first for Islamic fintech by Bloomberg Intelligence, followed by the UK and UAE.