Following this announcement, Tuum’s modular core will provide institutions with the possibility to launch and scale Islamic banking products with agility and security. As part of its commitment to delivering improved services, Tuum partnered with DDCAP Group, a facilitator of asset-backed, Sharia-compliant transactions.
In addition, the collaboration aims to optimise Tuum’s capabilities by enabling automated Tawarruq execution, streamlining trade execution, asset registry, and settlement tracking while ensuring full Sharia compliance as well.
According to the official press release, the Islamic finance sector is currently projected to reach USD 5.9 trillion by 2026, driven by the overall increasing demand for ethical, interest-free financial services across both established and emerging markets. However, the legacy technology limitations, coupled with a lack of scalable digital solutions, have hindered Islamic banks’ ability to modernise, develop, and meet evolving customer expectations.
Tuum’s Islamic Banking services were designed to support both fully Islamic banks and Islamic banking windows, allowing financial institutions to benefit from a cloud-native, flexible, and scalable platform that ensures improved compliance with Sharia principles.
The expanded offering includes dedicated Islamic Accounts & Deposits, including Mudarabah, Wakalah, Wadiah, and Qard Hassan, as well as an improved Islamic Lending module featuring Tawarruq-based consumer finance. At the same time, financial institutions will benefit from real-time Islamic profit calculation and distribution (developed to ensure precise and transparent profit-sharing, aligned with Sharia principles), a standalone profit-sharing module (integrates with any core banking system in order to enable automated Mudarabah and Wakalah-based profit distribution), automated Sharia compliance, Tawarruq-based financing, and a unified lending framework (which embeds Islamic financing within Tuum’s existing loan and finance module, allowing FIs to manage both conventional and Islamic financing in a single system).
In addition, Tuum’s entry into the Islamic Banking space also aligns with its broader expansion into the MENA region, where the overall demand for digital-first, Sharia-compliant banking services is on the rise.
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