28 June 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

First Islamic fintech gets UK regulator's approval

10 April 2017  |  6838 views  |  0 Innovation

A London-based start-up claims it is the first shariah-compliant fintech to be given regulatory approval in the UK.

Yielders, an equity-based crowdfunding platform for UK property investment, was given the green light by the Financial Conduct Authority (FCA) in early April.

The move has been interpreted as an attempt by the UK government to bolster London's fintech credentials in the wake of Brexit-tinged uncertainty and to establish the UK as the primary centre for Islamic finance outside of the Middle East.

The UK's efforts to woo fintechs and banks from the Islamic finance market have been further underlined by the Bank of England's recent development of a liquidity tool for shariah-compliant banks.  

Yielders founder and director Irfan Khan told Reuters that, following two years of discussion with the FCA and the Department for International Trade, "there's certainly movement in the UK to try to promote Islamic fintech and for fintech firms in the UK to show the route forward for a lot of the Middle Eastern market".

Yielders also conferred with the UK's Islamic Finance Council in order to prove that its platform and services were in accordance with shariah law. These conditions include a prohibition on charging interest or anything that could be considered gambling and have consequently made many Islamic finance firms uncompetitive in Western markets.

But this may yet usher in a wave of shariah-focused fintechs that seek to mitigate this uncompetitive foundation through the removal of back-office costs.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Brexit-scarred London fintech startups enquire about moving to Berlin

Brexit-scarred London fintech startups enquire about moving to Berlin

18 July 2016  |  11677 views  |  2 comments | 18 tweets | 17 linkedin
Emirates Islamic introduces Twitter banking

Emirates Islamic introduces Twitter banking

25 April 2016  |  7119 views  |  0 comments | 13 tweets | 23 linkedin
London fintech investment in first three quarters surpasses 2014 total

London fintech investment in first three quarters surpasses 2014 total

08 October 2015  |  10494 views  |  0 comments | 31 tweets | 21 linkedin
Start-up support seen as critical to future of London fintech scene

Start-up support seen as critical to future of London fintech scene

11 April 2014  |  7431 views  |  2 comments | 13 tweets | 5 linkedin
Al Hilal Bank credit card with compass points to Mecca

Al Hilal Bank credit card with compass points to Mecca

23 October 2012  |  6307 views  |  2 comments | 6 tweets | 3 linkedin
Lloyds TSB introduces Shariah-compliant money transfer account

Lloyds TSB introduces Shariah-compliant money transfer account

24 January 2008  |  5656 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.www.fisglobal.comvisit vasco.com/news/PSD2-compliant-solutionsdownload the report now

Top topics

Most viewed Most shared
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
9144 views comments | 19 tweets | 37 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
8683 views comments | 10 tweets | 6 linkedin
hands typing furiouslyArtificial Intelligence- Computer to IOT
8499 views 0 | 4 tweets | 2 linkedin
hands typing furiouslyThe EU and blockchain: taking the lead?
7491 views 0 | 8 tweets | 7 linkedin
Asia still top dog for payments innovation but Europe gaining groundAsia still top dog for payments innovation...
7431 views comments | 10 tweets | 9 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job