For years the banking industry in the UK was dominated by a handful of big banks. But that’s changed within the past six years, as new spinoff challenger banks have muscled into the arena; lying somewhere in between traditional banks and fintechs, technology-oriented challengers are sure to drive the industry into unchartered territory.
It is hardly a secret that the IT infrastructures in many of Britain’s banks today are in poor health. Recent comments by Andrew Bailey, chief executive of the Prudential Regulation Authority recently took the discussion one step further, exposing the complex nature of current core banking systems and revealing that it may in fact be a false economy for banks to keep avoiding investment in new IT systems.
While business activities in line with the provisions and principles of Sharia have been a feature in the Arab world for over a millennium, recent years have seen the emergence of modern Islamic finance that has established itself as an important component of regional economies. As new geographies continue to open up, industry forecasts suggest that modern Islamic finance will continue to enjoy a solid and vertical growth fuelled by greater acceptance and surging demand for ethical financial products.
Islamic banking is gaining momentum in traditional as well as non-traditional markets and the industry is likely to maintain the current trajectory in the foreseeable future. In many regions, Islamic banking has evolved from being an emerging ethical niche market into being part of the mainstream financial services landscape.