Islamic Fintech Start-ups Capitalise on Indonesia’s Growth Potential

Islamic Fintech is the term used to describe Shariah-compliant fintech start-ups. Data from the Indonesia Shariah Fintech Association indicates that this market remains extremely small, accounting for Shariah-compliant loan disbursements of IDR 1 trillion in 2019 (four times higher than 2018 levels).

Given that Indonesia’s Islamic banking industry accounts for just 6% of the country’s USD 580 billion banking assets, there is significant potential for growth.

Half of Indonesia’s 270 million Muslim population (who are the majority) do not have bank accounts, but have access to mobile phones, creating considerable opportunities for fintech operators.

However...