Robocash enters the Islamic finance market
PEER-TO-PEER investors may soon be able to back Islamic finance after European alternative lender Robocash Group partnered with a Shariah-compliant firm in Indonesia.
Robocash Group has teamed up with Indonesian Islamic finance firm Reliance Finance to launch a Shariah-compliant personal finance product in the country, for Muslims who avoid traditional financial services such as loans due to interest payments being deemed as forbidden.
Robocash said Shariah adoption in fintech is still lagging in many countries including Indonesia and said it wants to enhance access to finance for the Muslim population following the Islamic principles.
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“We are very positive about the future of financial technologies in Indonesia,” Sergey Sedov, chief executive of Robocash Group said.
“The overall digital adoption and initiatives supporting the industry will allow the country to see further exponential market growth.
“We are excited to our technologies to Islamic finance market and contribute to its further development.
“Committed to our mission to quickly meet the financial needs of customers, we have strengthened our robotic solutions by the local expertise of Reliance Finance to provide the best user experience.”
The venture is currently being financed by Robocash Group and Reliance Finance.
A spokesperson added that P2P investors may eventually be able to fund the Islamic loans but it was focused on fine-tuning the processes initially.