{"id":873645,"date":"2026-09-04T12:30:28","date_gmt":"2026-09-04T10:30:28","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=873645"},"modified":"2026-09-04T12:31:09","modified_gmt":"2026-09-04T10:31:09","slug":"ethics-transparency-value-why-islamic-banking-is-winning-new-customers","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/industry-news\/873645\/ethics-transparency-value-why-islamic-banking-is-winning-new-customers\/","title":{"rendered":"Ethics, Transparency, Value: Why Islamic Banking is Winning New Customers"},"content":{"rendered":"\n<p><em><sup>By Ameen Hassen, Head of Shari\u2019ah Banking at Standard Bank<\/sup><\/em><\/p>\n\n\n\n<p>For many years, Islamic banking was primarily associated with faith-based financial services designed to meet the needs of Muslim communities. <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><a href=\"https:\/\/www.standardbank.co.za\/southafrica\/business\/products-and-services\/bank-with-us\/shariah-banking?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=September+2026\" target=\"_blank\" rel=\"noreferrer noopener\">Learn more about Shari&#8217;ah offerings for your business.<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<p>Today, however, something interesting is happening. A growing number of non-Muslim clients approaching Standard Bank&#8217;s Shari&#8217;ah Banking business are doing so for reasons that extend beyond religious affiliation.<\/p>\n\n\n\n<p>This shift reflects a broader change in how people and organisations approach financial decisions. <\/p>\n\n\n\n<p>Increasingly, businesses, investors and entrepreneurs are looking for financial solutions that are transparent, responsible and aligned with their values.<\/p>\n\n\n\n<p>While Islamic banking remains firmly rooted in Shari&#8217;ah principles, many of those principles are resonating with a wider audience because they often arrive at outcomes that mirror the goals underpinning modern environmental, social and governance (ESG) frameworks. <\/p>\n\n\n\n<p>As ESG considerations become more central to investment and financing decisions, businesses and investors are increasingly recognising the value of transparency, accountability, ethical conduct and positive societal impact.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Where Islamic Finance and ESG Converge<\/h2>\n\n\n\n<p>In many respects, Islamic finance has championed these principles for decades, making it increasingly relevant not only to faith-driven clients. <\/p>\n\n\n\n<p>In a world where investors and borrowers are paying closer attention to how financial decisions affect society, communities and long-term economic sustainability, attributes such as transparency, shared responsibility and strong governance have become increasingly important. <\/p>\n\n\n\n<p>These are the same foundations that underpin Shari&#8217;ah banking, helping to explain its growing appeal among clients from diverse backgrounds and belief systems.<\/p>\n\n\n\n<p>Although the two frameworks originate from different foundations, they often share common objectives. <\/p>\n\n\n\n<p>Islamic finance is guided by Shari&#8217;ah principles, while ESG investing is shaped by environmental, social and governance considerations. <\/p>\n\n\n\n<p>Yet both encourage responsible investment, good governance, accountability and the pursuit of positive outcomes for society.<\/p>\n\n\n\n<p>Increasingly, clients recognise these similarities.<\/p>\n\n\n\n<p>The emphasis on fairness and ethical conduct within Islamic finance speaks directly to growing concerns about corporate responsibility and governance. <\/p>\n\n\n\n<p>Its focus on accountability and transparency aligns with the demand for greater trust in financial systems. <\/p>\n\n\n\n<p>Likewise, the social dimensions of Islamic finance resonate strongly with the wider movement toward sustainable and inclusive economic development.<\/p>\n\n\n\n<p>For many clients, particularly younger generations of investors and entrepreneurs, these shared values make Islamic banking relevant regardless of religious affiliation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Faith at the Core, with Growth Opportunity<\/h2>\n\n\n\n<p>While the appeal of Islamic finance is broadening, it is important to recognise that religious principles remain a primary reason many customers choose Shari&#8217;ah-compliant products and services. <\/p>\n\n\n\n<p>For Muslim clients, adherence to Shari&#8217;ah principles remains a fundamental requirement and an essential part of their financial decision-making. That will always be central to the Islamic banking proposition.<\/p>\n\n\n\n<p>What is changing, however, is that more people are finding value in the model. This expansion of interest signals an important opportunity. <\/p>\n\n\n\n<p>It suggests that Islamic finance has the potential to serve a much wider segment of society while remaining true to its foundational principles.<\/p>\n\n\n\n<p>The implications are particularly significant for Africa.<\/p>\n\n\n\n<p>The continent faces substantial funding requirements to support infrastructure development, entrepreneurship and economic growth. <\/p>\n\n\n\n<p>Small and medium-sized enterprises, often described as the backbone of African economies, continue to face significant challenges in accessing appropriate financing. <\/p>\n\n\n\n<p>At the same time, governments and development institutions are grappling with infrastructure funding gaps that require innovative and sustainable financing solutions.<\/p>\n\n\n\n<p>Islamic finance has an important role to play in addressing these challenges. Its focus on real economic activity, long-term value creation and responsible financing lends itself naturally to sectors that drive development and employment. <\/p>\n\n\n\n<p>As awareness and adoption increase among both Muslim and non-Muslim clients, there\u2019s an opportunity to mobilise capital more effectively into areas that can support inclusive economic development across the continent.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.standardbank.co.za\/southafrica\/business\/products-and-services\/bank-with-us\/shariah-banking?utm_source=BusinessTech&amp;utm_medium=Article&amp;utm_term=September+2026\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Click here to learn more about Shari\u2019ah Banking at Standard Bank.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For many years, Islamic banking was primarily associated with faith-based financial services designed to meet the needs of Muslim communities.<\/p>\n","protected":false},"author":57,"featured_media":862517,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"posted","_sma_x_autopost_error":"","_sma_x_post_id":"2095821934994862273","_sma_facebook_post_id":"191437357620492_2195595791260820","_sma_instagram_post_id":"","_sma_x_attempts":1,"footnotes":""},"categories":[10459],"tags":[25698,499],"class_list":["post-873645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-shariah-banking-2","tag-standard-bank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/873645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=873645"}],"version-history":[{"count":8,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/873645\/revisions"}],"predecessor-version":[{"id":873880,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/873645\/revisions\/873880"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/862517"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=873645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=873645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=873645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}