Muslims Need Digital Services To Fully Embrace Islamic Finance

In theory, it’s never been a better time to be part of the Islamic finance movement. From Dubai to Dakar, from Kuala Lumpur to Karachi, the sector is booming. Over $4 trillion in assets, an expanding footprint in over 80 countries, and a growing appetite from ethical investors worldwide.

But if you zoom in—look beyond the industry reports and headline numbers—you’ll find something far more fragile, and far more telling. Ask a young Muslim in Toronto how easy it is to get a halal mortgage. Ask a small-business owner in Nairobi how long it takes to access a Shariah-compliant loan. Ask a mother in Jakarta if she can calculate and pay her zakat online with clarity and confidence.

More often than not, you’ll hear the same story: the desire is there, the intent is there, the faith is strong. But the tools? Not so much.

Islamic finance may be grounded in divine principles, but when it comes to digital delivery, it’s stumbling in a world that’s moving at lightning speed.

Related: Is the Islamic Financial Services Industry Ready to Embrace Digital Employees?

The Paradox at the Heart of the Industry

This is the central paradox: Islamic finance, with all its ethical safeguards and emphasis on justice, is supposed to be a more accessible, inclusive alternative to conventional finance. But in practice, it’s often more difficult to access—especially when it comes to digital channels.

The young Muslim professional who wants to invest her savings in halal stocks? She’s met with outdated websites, confusing disclosures, and unclear screening methodologies.

The tech-savvy Muslim entrepreneur who needs an interest-free loan to scale his startup? He’s told to come into the branch—with a stack of documents, two referees, and a two-week wait for a decision.

The retiree trying to pay his zakat-al-fitr digitally? He finds apps that don’t account for nisab, or worse, don’t explain where his money is going.

And these are the committed ones—the people actively seeking out halal financial options. Imagine the drop-off rate for those who are simply curious or new to the space.

This isn’t just an inconvenience. It’s a major reputational risk for an industry that prides itself on moral clarity and accessibility. If Islamic finance is seen as more complicated, more bureaucratic, or simply less responsive to modern life, people will opt out. Not because they want to abandon their values—but because they feel abandoned by the system.

Why Digital Access Is About More Than Convenience

Let’s be clear: this isn’t about keeping up with tech trends. It’s about faithful inclusion in an increasingly digitized financial system.

For millions of Muslims around the world, being able to bank, invest, save, and give zakat in a Shariah-compliant way is not a lifestyle choice—it’s a religious obligation. It touches the heart of their identity, their worship, and their relationship with God. If we, as an industry, can’t meet them with usable, trustworthy tools, we’re not just missing a market—we’re failing a mission.

This is especially important because of who today’s Muslim consumer is. Globally, over 60% of Muslims are under the age of 35. This generation isn’t waiting in bank lines. They’re paying bills on their phones. They’re investing in stocks from their beds. They’re organizing charitable giving over WhatsApp.

And yet, Islamic banks and institutions are still designing experiences for a world of forms, branches, and gatekeepers. The disconnect is glaring.

What’s Actually Working—and Where

It’s not all bleak. Some players are showing what’s possible when digital meets devotion.

In the investment space, platforms like Wahed Invest have opened the doors to halal wealth management for young Muslims across the U.S., UK, and beyond. With clean interfaces, Shariah certification, and global portfolios, they’ve proven that digital halal investing is not only viable—it’s desirable.

Apps like Zoya and Islamicly are stepping in to make halal stock screening understandable and mobile-friendly. With real-time filters and transparency about what makes a stock compliant or not, they’re bridging a crucial educational gap for a generation that wants to build wealth without compromising on ethics.

In Southeast Asia, Bank Islam Malaysia and Maybank Islamic are experimenting with mobile-first banking for everyday customers. Their platforms offer digital onboarding, bill payment, and even micro-savings features, all built on Islamic principles.

And in the philanthropy space, fintech platforms like Finterra are exploring how blockchain can be used to bring trust and transparency to waqf management and zakat disbursement—an idea that, if scaled, could revolutionize Islamic charitable giving.

These efforts are promising. But they’re still isolated, and often geographically limited. Most Muslims around the world still can’t access high-quality Islamic financial services from their phones. And when they try, they encounter clunky apps, broken links, or services that fail to explain how exactly they comply with Shariah.

Why the Gap Still Exists

So why hasn’t the industry kept up?

Part of the challenge is technical. Shariah compliance isn’t plug-and-play. It requires rigorous screening, scholar oversight, and context-specific interpretation. A product that’s halal in Malaysia might not pass muster in Saudi Arabia or Turkey. That’s a real challenge when you’re trying to scale digital products across regions.

But the bigger problem, frankly, is strategic. Many Islamic financial institutions still see digital transformation as a side project—not as the core of what they offer. Innovation labs are created, apps are launched, but the foundational shift in thinking—about customer experience, speed, transparency, and accountability—is often missing.

And there’s a shortage of cross-disciplinary talent. Developers who understand fiqh. Shariah scholars who grasp UX design. Product teams that can translate fatwas into functional APIs. Without these people in the room together, you end up with either slick-looking apps with no real compliance—or compliant products nobody wants to use.

The Missed Opportunity—and the Road Ahead

What’s frustrating is that the opportunity is huge. Not just in terms of profit, but in terms of impact.

Imagine a world where zakat is automatically calculated and disbursed to verified recipients, with complete traceability.
Imagine Muslim youth in non-Muslim-majority countries opening halal investment accounts in minutes—no paperwork, no confusion.
Imagine an AI-powered assistant trained on Shariah principles that guides users through ethical financial planning in their native language.
Imagine women, refugees, rural populations—those often excluded from traditional finance—accessing halal microfinance directly from their phones.

This is not fantasy. This is all possible. But only if the Islamic finance industry stops reacting and starts leading.

That means bold investment in user-first platforms. It means authentic partnerships between scholars and technologists. It means standardized compliance frameworks that can be built into code. And most importantly, it means listening—really listening—to what Muslims actually need from their financial lives.

Because if we don’t, someone else will. Already, conventional banks are building ethical products and targeting Muslim customers with better digital tools than many Islamic institutions offer. If the only difference between a halal and a conventional product is a logo and a promise, the industry risks losing its edge—and its credibility.

This Is About More Than Banking

At its core, this is not a conversation about apps or AI. It’s a conversation about dignity.

About whether a Muslim should have to compromise their values just to participate in the global economy. About whether faith can truly guide finance in the 21st century. About whether Islamic finance can fulfill its founding promise—not just to offer an alternative, but to set a new standard.

It’s time to stop asking whether Muslims need digital Islamic finance. They do. The real question is: Are we willing to build it—fully, ethically, beautifully?

The tools are here. The demand is loud. The responsibility is ours.

And the time is now.