One of the interesting elements about Fintech is the growth of it it part of the world that is governed under Sharia law. Financials in these parts of the world are incredibly unique and must be catered to culturally appropriate regulations.
An aspect about this that makes finance harder in countries governed by Sharia law is the concept of interest. In nations governed under Islamic principles, the concept of interest is seen as favoring the lender and exploitive. Furthermore, the overall premise of lending must be to promote the principles established under Islam, rather than create wealth for an individual or organization.
Another important aspect of finance in countries governed under Islamic law is that the lending institution must also share in the risk of the financial instruments it creates. This governs the type of instruments that a bank can invest in with the money of others and its own and is aimed at creating a more equitable lending environment that protects the people.
Enter Malaysia. The majority muslim country recently announced that it will be providing “incentives” to companies willing to develop and test fintech products in the domestic market. Due to the fact that opportunities of profit from interest alone is far more difficult in a country governed under Sharia law, these countries have seen slower growth in the fast-growing fintech market. This offering may be an incredibly valuable proposition for an entrepreneur with a global mindset aimed at offering some of the benefits of fintech to different cultures across the globe. Malaysia is also a powerhouse country in a the fast growing ASEAN region of the globe and could provide unique opportunities for regional market entry.
Source: https://www.cryptocoinsnews.com/malaysia-woos-fintech-devs-shariah-compliant-islamic-finance/