Mud Orange, a multi award-winning creative studio, has today released a trailblazing study revealing critical insights into the Islamic Finance landscape among British Muslims. The comprehensive study, based on a survey with over 1000 participants across the UK, uncovers the unique financial needs and preferences of the 3.9 million strong British Muslim population, highlighting significant opportunities for brands and financial institutions.
British Muslim Money: A Market Poised for Growth
Representing 6.5% of the UK’s population which is bigger than the population of Wales, British Muslims are a demographic that cannot be overlooked by finance brands. One in three British Muslims hold professional jobs and university degrees, and 86% express a desire for Shariah-compliant banking products and services. There’s a clear and growing demand for more inclusive financial options for a generation with greater disposable income and financial literacy. They expect to see more diverse options from the finance industry that allows 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 from investment platforms, mortgage alternative fintech’s, to business finance providers to create financial mobility for Muslims looking to uphold Islamic values.
Mud Orange’s study is pivotal in understanding Muslim perception, desires, and needs from these Islamic Finance brands and mainstream brands playing in this space, providing an insightful roadmap for businesses to better engage these underserved consumers.
Five Headline Findings From Mud Orange’s Islamic Finance Study
1. The Halal Investment Surge: Approximately 44% of British Muslims are actively exploring Shariah-compliant investment opportunities, with a notable interest among 18–24 year-olds.
2. Overcoming damaged perceptions : The study reveals a critical gap between the demand for Islamic banking and the current market offerings, tarnished by issues of trust and poor customer experience.
3. Property Entrepreneurs Demand Proper Finance: A staggering 92% of Muslim property developers and investors emphasise the need for Shariah-compliant financial solutions to give them a way to continue with their careers without compromising their value.
4. 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, coupled with a strong preference for Shariah-compliance and setting a new standard for the industry.
5. Growing Demand for Motor Financing: The lack of Shariah-compliant car financing options has left a gap in the market, especially among British Muslim men who actively search for halal financing to upscale their car.
You can read the full summary report here, which delves further into these findings.
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 consumers. Despite the emergence of innovative and revolutionary players in the Islamic finance sector, a huge hurdle remains to overcome. New entrants in the space must strategically invest in their brand, marketing campaigns, customer engagement, and public relations. This concerted effort 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 comments, “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 that support Muslim progress aligned with their core values”. Arif continues “We already work with a handful of Shariah-compliant finance brands who’ve seen strong growth when becoming more insightful, intentional, and emotive in their marketing”.