The world of fintech has seen great progress in recent weeks with several organizations making it a point to launch new products. The majority of developments in the sector were geared towards bringing more consumers into the industry with the sole aim of increasing mass adoption.
The industry recently received another boost when it acquired Wahed Incorporated from the United States Niyah Limited, a digital banking application that caters to the Muslim community. The association of Saudi Aramco by Wahed also makes it one of the major players in the Asian fintech market.
Wahed officials claimed the acquisition will pave the way for more offerings that would allow financial services that comply with Islamic law to grow and prosper. Nahah’s services became popular in the UK for its user-friendly features that worked in tandem with the Sharia Law. At present, the financial terms of the deal were being kept under wraps with the numbers being negotiated only between Niyah and Wahed.
Wahed added that the main purpose of the deal was to provide its customer base with interest-free financial products such as debit cards and digital bank accounts. The latest move comes after a $ 25 million investment into Wahed by Saudi Aramco Entrepreneurship Ventures. After the announcement, Wahed’s chief executive Junaid Wahedna said:
“All the money you keep with us will be invested at your discretion. There is no reason why we should not extend the scope of our reach to everyone. ”
Wahed’s 100,000 strong customer base was excited to add new features to the platform. What makes Wahed stand out is his adherence to the Muslim Shariah Law which prohibits charging interest on the consumer base. According to reports within the company, Wahed will allow customers to keep a certain amount of money on their own. This has been done so that the cash deposits are not used for borrowing but rather to earn interest. The company added that once current developments take hold, there are plans to diversify into other communities as well.