Islamic Fintech Startup Wahed opens physical office in the UK
Wahed has a plan to help its clients grow their funds in the most Shariah compliant way.
American financial technology and services provider Wahed has expanded its global reach with a newly opened office in the United Kingdom (UK). As reported by CNBC, the new office is like a storefront that looks like it Apple Inc (NASDAQ: AAPL), and it will house employees who will provide account opening services and investment advice for potential clients.
Wahed is designated as an Islamic finance banking firm that adheres to the principles of Sharia investment to serve its users. The bank does not pay interest on savings, and it does not invest the customer’s money in a wide range of conventional investment options, including lending companies, alcohol and tobacco among others.
The bank encourages its users to invest their money in Exchange-traded funds (ETFs) that track the price of gold, a way that enables users to hedge their capital against rising fiat inflation. The difference in the price increase of gold per time is what the customer’s loss or gain will be.
With the development of digital banking, there are many startups offering tailored services for users in space today. While those operating in the UK, including Revolut and Klarna does not have storefronts, Wahed’s CEO, Junaid Wahedna, said the company’s idea of opening physical offices is to strengthen the trust of the Muslim community in the UK.
“They have trust issues,” he added. “And so they want to see a physical presence before they trust you with money.”
With around 3.9 million Muslims in the UK, Wahed has a clear customer base, but the firm said its services will not only target Muslims, but also other Abrahamic faiths, including Judaism and Christianity.
Wahed UK Office to meet the investor’s needs
There are many intricacies of digital banking, but many investors, especially millennials and Gen Z, have adapted to it compared to banking in brick-and-mortar offices. Wahed has the plan to help his clients grow their money in the most Sharia compliant way.
Wahed is even optimistic that the company has a big role to play in serving Muslims who are largely considered generally underserved.
“I think it really fits with the Muslim community and what their needs are,” Wahedna said. “Because otherwise, what happens is the Muslim community, because they’re underserved, they keep their money in cash under the mattress, or in something very unsafe, and they lose their money every few years because it’s a scam in the community or someone exploits them. And that cycle of poverty just continues.”
Wahedna criticized the usurious model of most lending service providers today, adding that most fintech platforms add to the rising cost of living for most people. The company is mostly making a loss even though the outfit in Malaysia and the USA had broken even.
Saudi Aramco Entrepreneurship Capital, professional footballer, Paul Pogba is among the backers of the firm which has raised $75 million to date.
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Benjamin Godfrey is a blockchain enthusiast and journalists who enjoys writing about the real-world applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the new technology. His desire to educate people about cryptocurrencies inspires his contributions to reputable blockchain-based media and websites. Benjamin Godfrey is a lover of sports and agriculture.
