Mambu has announced the launch of expanded Islamic banking capabilities aimed at supporting financial institutions across the Asia-Pacific, Middle East, and Africa regions to develop, implement, and scale Shari'ah-compliant financial products efficiently.
The latest enhancements to Mambu's core banking platform include a comprehensive suite of tools designed to facilitate Islamic Profit Sharing and support the development of Islamic current and savings accounts, as well as a range of Shari'ah-based financing products tailored for personal, SME, and asset-based needs.
Growth in Islamic finance
Islamic banking assets are predicted to exceed USD $3.8 trillion by 2025. Many banks across the Middle East, Africa, and Asia-Pacific are currently reliant on infrastructure that does not meet the evolving requirements of customers or the regulatory demands associated with financial services. Mambu's upgraded offering is intended to provide a foundation that enables banks to address these challenges in line with ethical finance principles.
David Becker, Market Sales Director, APAC, said,
"This launch marks a significant milestone in our commitment to ethical and inclusive finance and to our customers in APAC and MEA. Mambu's cloud banking platform coupled with our powerful Islamic Profit Sharing capabilities ensure financial institutions now have access to powerful tools that reduce complexity, automate compliance, and accelerate time to market, all within a fully Shari'ah-aligned framework."
Mambu reports that its cloud banking platform has previously supported banks in modernising their Islamic finance operations. The company states that the new features have begun to generate interest from existing and new customers who see the benefits of streamlined operations, optimised product development, and the ability to launch compliant solutions quickly and at scale.
Enhanced profit sharing and compliance
The upgraded Islamic banking offering features the introduction of a purpose-built engine for Islamic Profit Sharing (IPS), intended to automate the calculation and distribution of profits in accordance with Shari'ah requirements. The platform also supports profit-and-loss sharing principles such as Mudarabah, Wakalah, Wadiah, Qard Hassan, and Tawarruq, alongside financing solutions including Murabaha, Tawarruq, and Qard Hassan.
The SaaS architecture and low-code product configuration available on Mambu are designed to allow institutions to manage both Islamic and conventional banking systems, enabling expansion into new markets with regulatory and security features embedded.
Harjit Kang, Head of Middle East & Africa, commented,
"Islamic banks don't just need digital tools, they need a flexible foundation built for ethical growth. To remain competitive in a digitally transforming region, Islamic banks must adopt new technologies; innovators will gain first-mover advantages, while those who fail to adapt, risk being left behind. Mambu enables them to lead with agility, trust, and purpose."
Configurable contracts and core features
Mambu's IPS engine allows banks to configure Islamic deposit products, calculate average balances, and analyse profit distribution data across various segments, while automating the application of profits, taxes, and bank profit shares to minimise manual intervention and errors. The engine supports deposit contracts such as:
- Wadiah: A safe custody model with optional hibah (gift) for wallets and current accounts
- Qard Hassan: Non-interest-bearing current accounts designed for safekeeping
- Tawarruq: Structured deposits with pre-agreed returns
- Mudarabah: Revenue-sharing investment accounts, both restricted and unrestricted
- Wakalah: Agency investment contracts with full transparency
Each contract is designed to be configurable within Mambu's system, providing transparency and audit capabilities for compliance with Shari'ah standards. The platform is structured to help institutions serve both retail and SME markets.
Financing product support
Mambu's offering includes tools to build and manage finance products for personal, SME, and asset-based needs, with support for:
- Murabahah: Sales-based financing with clear margins and tailored repayment schedules
- Tawarruq: Asset-based transactions suitable for cash loans and credit cards
- Qard Hassan: Interest-free loans for microfinancing, education, and emergencies
These capabilities are integrated into the platform with the objective of enabling banks to comply with Shari'ah principles while addressing operational efficiency, compliance, and speed to market for new products.
