Following this announcement, the initiative focuses on the key principles of Islamic banking, with the overall aim for a full end-to-end platform designed to support the needs of local financial institutions.
In addition, the launch will allow Tuum to develop the necessary infrastructure for Islamic deposits and asset-based lending, which represent two critical components of a broader Islamic banking system. This Minimum Viable Product (MVP) will also ensure that FIs can offer products that fully comply with Sharia law, as well as preparing for further expansion into a complete Islamic banking suite.
Throughout the process of focusing on the foundational elements of Sharia-compliant financial tools, Tuum aims to provide FIs with the possibility to meet the growing demand for inclusive and ethical banking products. At the same time, its platform flexibility and scalability is set to enable banks to optimise and develop, while also ensuring that their suite of solutions align with Islamic principles.
The launch is based on the development of a profit-sharing system for Islamic deposits, based on the concept of Mudarabah (profit-sharing). This system was designed to allow returns to be generated through legitimate economic activities, with profits that are shared between banks and deposits according to pre-agreed ratios, rather than through interest-based income. Included in the key features of the deposit solution include Sharia Compliance, transparency, and a secure foundation for growth and development.
At the same time, Tuum is also 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, secure, and tangible assets. Included in the key elements of this system are Sharia Compliance, profit and risk sharing, as well as scalable development, which will provide a foundation for future Islamic models, such as Murabaha, Ijara, and Musharakah, required to create a comprehensive Sharia-compliant financing ecosystem.
Tuum is set to remain committed to evolving its platform in order to support the full spectrum of Islamic finance. This initiative also aligns with the rising worldwide demand for Sharia-compliant banking, while also empowering financial institutions to offer inclusive ethnical banking tools. Its platform aims to continue providing financial institutions with the needed tools to meet the evolving demands of the market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
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