US-based Islamic fintech company Wahed has agreed to acquire UK-based fintech firm Niyah to launch an Islamic challenger bank in the UK.
The financial details of the transaction have not been divulged
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Niyah’s acquisition is in line with Wahed’s product expansion plans and boost its presence as a provider of Shariah-compliant financial products and services.
Launched earlier this year, Niyah is developing a banking app and ethical finance platform for the Muslim community.
The fintech firm intends to help underserved Muslims in the UK to handle their finances and invest within their ethical norms.
Niyah CEO Ali Abdulkadir said: “The acquisition goes to the heart of the company’s vision to continue to grow an Islamic finance marketplace that is driven by the needs of the consumer and their rising demands for ethical investments.
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By GlobalData“Wahed has an excellent track record for delivering services to an underserved market, and with the support of Railsbank, it can continue to expand its banking offering beyond the UK.”
Launched in 2017, Wahed is the parent company of UK-based shariah-compliant robo-advisory platform Wahed Invest.
In the world of Islamic finance, Wahed has created a digital platform that offers free portfolio recommendations without charging any hidden fees.
Its services are available online or via its mobile app.
Wahed has 100,000 customers in the US, the UK, and Malaysia, among other countries.
The latest deal comes after its recently concluded investment round, which was led by Saudi Aramco Entrepreneurship Ventures.
After UK, Wahed aims to expand its banking network across North America, Asia, Europe and the Middle East regions.
Commenting on the acquisition, Wahed CEO Junaid Wahedna said: “We are excited about welcoming Niyah to our business.
“Outside the Islamic world the UK has a long standing reputation as a leading fintech hub and a major centre for Islamic finance.
“Acquiring Niyah and launching our first banking services here enables us to leverage the opportunities that Britain’s unique financial hub brings, and to tap into a wide and underserved customer base that is receptive to our service offering.”
