As the global economy continues to evolve in the second decade of the 21st century, world events are providing an opportunity to evaluate the underlying value proposition of the Islamic finance industry and the trends that are reshaping what banks are offering customers. During the past five years, Islamic finance has undergone a rebirth. Now, the industry is experiencing a redefinition of what banks are offering customers in various markets.
Regulators and other government and independent agencies are calling for greater reporting transparency, higher quality regulatory practices, and greater engagement with the lower half of the economic pyramid. Islamic finance is slowly maturing at different rates in various countries and even within countries; its adoption by customer segments is mixed. Hence, Islamic finance is an industry on the move. Even though there are more providers of sharia-compliant services than ever before, it appears that the underlying value proposition is not keeping pace with the industry’s transformation.
