In order to foster client confidence in the brand, Wahed, which has received GBP 75 million in capital from family offices and angel investors, is opening a 140-square-meter branch at 89 Baker Street in London.
Along with the launch of the new branch, Wahed's new gold-backed debit card will enable users to make transactions using funds stored in an exchange-traded gold commodity (ETC).
Many Muslims in the UK choose to hold their money in cash rather than open regular bank accounts, which causes financial inequality because inflation reduces the long-term worth of cash.
Wahedna originally began as a Muslim-focused online banking service. To minimise exposure to loans or interest, known in the Islamic tradition as Riba, this explicitly implies avoiding money held in the conventional banking system.
Investments in businesses that profit from loan, gambling, alcohol, and cigarettes are prohibited by Wahed. Wahed accounts do not promise exorbitant returns on dangerous crypto assets or provide interest on deposits. Instead, the value of user deposits closely mirrors the value of gold, whose price varies according to supply and demand.
The main cause of the widespread financial exclusion that occurs among different Muslim communities around the world is the absence of Shariah-compliant products. As Muslims are barred from using any financial services that involve the payment and receipt of interest (Riba), this refers to financial products and services that adhere to the fundamentals of Islamic law (Shariah).
With a total of 27 firms, the UK now has the most Islamic fintechs. Malaysia comes in second with 19 companies, and the United Arab Emirates (UAE) comes in third with at least 15 companies.
A Mambu study found that 74% of young Muslims want banks to make make investments that support their religious convictions and 75% want them to make investments that 'do good in the world'. In more detail, 62% of respondents opposed their banks funding to tobacco industries, while 69% preferred that their banks refrain from lending to gambling establishments.
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