Being a Muslim, it is our duty to be Shariah Compliant in all our transactions. Especially in Pakistan Islamic banking institutions have seen substantial growth and individuals are prioritizing Islamic finance over conventional interest-based finance. In Pakistan or any other country where Muslims are in majority, they prefer and always opt for Shariah-Compliant Fintech products as it adheres to more transparency in the transactions.
Around 90% of deposits in Islamic banks come from merchants, salaried people, and small and medium enterprises which makes it possible for Fintech start-ups to tap into this market and provide them with Shariah Compliant digital financing products. A combination of Fintech with Shariah Compliance will not only take care of their sensitivity towards Shariah-compliant transactions but also provide easier access with only a click on their mobile phones.
Financial Inclusion
Around 80% of the population is unbanked in Pakistan. By providing these individuals with the ease of Fintech-based financial transactions we not only make them financially inclusive but also any transaction that they make, can be recorded, and documented and hence provide the required transparency for the tax authorities to fulfill their regime.
Revolution in Digital Industry
Fintech startups are on a rise in Pakistan and are adhering to software that does not provide a shariah-compliant platform to the end user. It is the best time for these Fintech companies to adapt to software that provides a Shariah-compliant platform from the very inception thereby not only saving time by not rewriting the software but also capturing the market that is showing a trend for Shariah Compliant fintech products.
Youth Engagement
Around 63 percent population of Pakistan comprises of youth aged between 15 and 33. Tapping these millennials and generation Z – who are already inclined towards technology – at the right time in the right way should be our focus. We should motivate them to do all their transactions in a Shariah Compliant way so that when they generate new avenues of business opportunities, being shariah compliant not only brings barakah in their ventures but in return, they also become conscious individuals about all their business dealings/transactions.
As per the saying of Prophet Muhammad (SAW), “Seeking Lawful Earnings is compulsory for every Muslim.”
Dr. Muhammad Imran Ashraf Usmani
