Optimising financial products and services for British Muslims offers significant opportunities for brands and financial institutions. It is a segment of the UK population that is bigger than the population of Wales. 1 in 3 British Muslims hold professional jobs and possess a university degree. Some 86% express a desire for Shariah-compliant banking products and services. There is a clear and growing demand for inclusive financial options for a generation with greater disposable income and financial literacy.

Those are just some of the takeaways from a report released by creative agency, Mud Orange. The agency’s Islamic Finance Report reveals a number of financial insights about British Muslims.

They expect to see more diverse options from the finance industry. Specifically, solutions that allow them to engage with progressive and entrepreneurial financial management. As their demand goes unmet, they’re taking it into their own hands and pioneering bespoke Islamic finance companies across investment platforms, mortgage alternative fintechs, to business finance providers.

Mud Orange’s study aims to provide an insightful roadmap for mainstream financial businesses to better engage these underserved consumers.

Mud Orange Islamic Finance Study-key takeaways

The Halal Investment Surge. Approximately 44% of British Muslims are actively exploring Shariah-compliant investment opportunities. There is notable interest among 18–24-year-olds.

Overcoming damaged perceptions. The study reveals a critical gap between the demand for Islamic banking and the current market offerings. This is tarnished by issues of trust and poor customer experience.

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Property Entrepreneurs Demand Proper Finance. Some 92% of Muslim property developers and investors emphasise the need for Shariah-compliant financial solutions. These would give them a way to continue with their careers without compromising their values.

Gen Z’s Financial Expectations. 91% of Gen Z Muslims say it’s important to them that their bank offers Sharia-compliant financial products or services. They demonstrate high Islamic finance literacy. This is coupled with a strong preference for Shariah-compliance, setting a new standard for the industry.

Growing Demand for Motor Financing. The lack of Shariah-compliant car financing options has left a gap in the market. This is especially the case among British Muslim men who actively search for halal financing to upscale their car.

Opportunities for brands – bridging the gap in Islamic finance

The existing gap between mainstream and Islamic finance experiences has created a feeling of distrust and scepticism among Muslim consumers. Despite the emergence of innovative and revolutionary players in the Islamic finance sector, a huge hurdle remains to overcome. Mud Orange says that new entrants must strategically invest in their brand, marketing campaigns, customer engagement, and public relations. This is crucial to overcome the negative perceptions left by legacy institutions and herald a new era in Islamic finance.

Arif Miah, Strategy Director at Mud Orange said: “Brands operating in Islamic Finance need to get out of their echo chambers and authentically connect with the financial aspirations and goals of their audiences. They need to produce a brand that positions themselves as genuine allies supporting Muslim progress aligned with their core values. We already work with a handful of Shariah-compliant finance brands. They have seen strong growth when becoming more insightful, intentional, and emotive in their marketing”.