20 hours Ago By Lauren Towner
October 21 2024 Tuum, the leading next-generation core banking provider, today announced the launch of its foundational Islamic Banking and Finance solutions, marking a significant milestone towards delivering comprehensive, Sharia-compliant financial services. This initiative focuses on the key principles of Islamic banking, laying the groundwork for a full end-to-end platform designed to support the needs of Islamic financial institutions. With this launch, Tuum is creating the necessary infrastructure for Islamic deposits and asset-based lending, two critical components of a broader Islamic banking system.
This Minimum Viable Product (MVP) ensures that financial institutions can offer products that fully comply with Sharia law while preparing for further expansion into a complete Islamic banking suite. “This is an exciting milestone for Tuum as we take our first steps into the world of Islamic banking,” said Miljan Stamenkovic, VP, EMEA at Tuum. “By focusing on the foundational elements of Sharia-compliant financial services, we are empowering financial institutions to meet the growing global demand for inclusive and ethical banking products.
Our platform’s flexibility and scalability will enable banks to innovate while ensuring that their offerings align with Islamic principles.” Building the Foundations for Islamic Deposits At the heart of this launch is the development of a profit-sharing system for Islamic deposits, based on the concept of Mudarabah (profit-sharing). This system allows returns to be generated through legitimate economic activities, with profits shared between banks and depositors according to pre-agreed ratios, rather than through interest-based income.
Key features of the deposit solution include: Laying the Groundwork for Islamic Asset-Based Lending Simultaneously, Tuum is developing the framework for an Islamic asset-based lending solution, which aligns with the prohibition of riba (interest) and requires all lending to be tied to real, tangible assets. The key elements of this system include: Looking Ahead: Expanding Islamic Banking Capabilities While the initial focus is on deposits and asset-based lending, Tuum is committed to evolving its platform to support the full spectrum of Islamic finance. This initiative aligns with the rising global demand for Sharia-compliant banking and will empower financial institutions to offer inclusive, ethical banking products.
As Tuum continues to innovate, the platform’s flexibility and scalability will ensure that it remains at the forefront of Islamic banking, providing financial institutions with the tools they need to meet the evolving demands of the market. Miljan Stamenkovic Mambu Tuum Fintech Crypto News Fintech Funding.
