Tuum has announced the launch of its foundational Islamic banking and finance solutions, designed to offer comprehensive, Sharia-compliant financial services. This new platform aims to provide local financial institutions (FIs) with the tools to deliver ethical and inclusive banking options that align with Islamic principles.
The initiative centers around the core values of Islamic banking and is designed as a full end-to-end platform. This system will enable FIs to implement Islamic deposits and asset-based lending solutions—two key pillars of a Sharia-compliant banking system. The Minimum Viable Product (MVP) ensures these institutions can offer fully Sharia-compliant products, setting the stage for further expansion into a complete Islamic finance suite.
Building the Infrastructure for Islamic Finance
Tuum’s new platform is set to address the increasing demand for ethical banking solutions that adhere to Islamic law. By focusing on Sharia-compliant financial tools, Tuum offers FIs the flexibility to optimize their services and align with Islamic banking principles.
A central feature of the platform is its profit-sharing system for Islamic deposits, based on the concept of Mudarabah (profit-sharing). This model allows returns to be generated from legitimate economic activities, with profits shared between the bank and depositors according to a pre-agreed ratio, rather than through interest, which is prohibited in Islamic finance. The solution also emphasizes Sharia compliance, transparency, and a secure foundation for sustainable growth.
Asset-Based Lending in Line with Islamic Law
In addition to deposit solutions, Tuum is also introducing an Islamic asset-based lending framework. This system adheres to the prohibition of riba (interest), requiring all lending to be backed by real, tangible assets. Key elements include profit and risk-sharing structures, Sharia compliance, and scalability for future growth. The platform is designed to support models like Murabaha, Ijara, and Musharakah, which are critical to creating a robust, Sharia-compliant financing ecosystem.
Commitment to Supporting the Full Spectrum of Islamic Finance
Tuum remains dedicated to evolving its platform to meet the full range of Islamic finance needs. This launch aligns with the growing global demand for Sharia-compliant banking, empowering financial institutions to offer inclusive and ethical banking solutions. The platform not only meets market demands but also ensures compliance with regulatory requirements in the Islamic finance sector.
With its scalable, flexible solutions, Tuum is positioned to become a key player in the global Islamic banking landscape, enabling financial institutions to expand their service offerings while staying true to the core principles of Sharia law.
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