Rohit Bhadauria, Senior Manager, Financial Services Product Management, outlines how Mambu is evolving to deliver Shari’ah-compliant financial solutions

Founded back in 2011, Mambu is a true SaaS, cloud-native banking platform, leveraging principles of composability that allow customers to build modern financial experiences.

Thanks to Mambu, financial institutions around the world are empowered to build deposit and lending offerings on its modern core.

Ultimately, the firm’s underlying objectives are to meet demand for modern solutions to legacy core banking infrastructure, address challenges for established banks and newcomers, increase access to banking services and improve customer experience. 

Redefining Islamic banking

In recent years, Mambu has recognised a need and market demand for the delivery of Shari’ah-compliant financial solutions that can aid providers of Islamic finance and banking. 

“We believe in delivering user experiences that embody modern technology, as well as ethical practices, fair and just solutions, and social responsibility of the highest standard,” explains Rohit Bhadauria, Senior Manager, Financial Services Product Management at Mambu.

This policy has led to the business expanding the capabilities of its core platform to seamlessly blend agile, innovative technology architecture with the traditional values of Shari’ah law, meaning Islamic banking providers can build and launch products needed to meet end-user demand.

“To redefine Islamic banking in today’s environment,” Bhadauria continues, “our solutions have been constructed using a SaaS model to ensure that Islamic banks and financial institutions can efficiently build and launch the products their audience demand. 

“We bring adaptability and compliance together to allow for flexible adaptation to market changes and customer needs.”

Ensuring Shari’ah compliance

At their core, Islamic funding contracts require Islamic profit sharing capabilities. In other words, the profit on deposit accounts must be calculated, applied and distributed according to Islamic rules.

Mambu is enhancing its cloud banking platform to support this practice in full, allowing banks and other financial institutions to offer Shari’ah-compliant deposit products to customers.

“As with all socially-responsible practices, it’s crucial customers feel secure with their financial partner in safeguarding their earnings,” says Bhadauria. “When powered by Mambu, users will get the convenience of daily banking or savings accounts that adhere to Islamic values.

“Running on Mambu’s core banking engine will allow banks to provide Shari’ah-compliant products to their customers.”

Convenient banking experiences

With worldwide Islamic finance assets expected to hit US$3.47 trillion this year, demand for Shari’ah-compliant financial offerings is at an all-time high.

As a business founded on the principle of increasing financial accessibility, it is of utmost importance for Mambu to offer Shari’ah-compliance as a solution to customers. 

Offering Islamic profit sharing is a prime example of the company offering convenient banking experiences to today’s growing audience of digitally-native users.

“Our aim is to empower financial institutions with access to flexible, cost-effective and secure solutions, without ever compromising on the communal values that drive their customers,” concludes Bhadauria.

“Aligning with Islamic law and Shari’ah rules and guidelines at every step will serve customers with practices in line with ethical values, satisfying end customers with modern and seamless banking experiences."