Australia’s First Islamic Bank Secures License, Beta Testing Begins in 2023by Fintech News Singapore July 6, 2022
Australia’s first-ever Islamic bank has just been licensed and will begin beta testing with a small number of customers in 2023.
The Islamic Bank Australia will be the first Australian bank to offer a full suite of retail and business banking services – all without interest and will be Shariah-compliant.
Products at Islamic Bank Australia will be endorsed by internationally by renowned Islamic scholars to ensure they are Shariah-compliant.
IBA Group Pty Ltd – now Islamic Bank Australia – had obtained a Restricted Authorised Deposit-taking Institution (Restricted ADI) authorisation from the Australian Prudential Regulation Authority (APRA).
IBA Group was originally founded by thirteen Muslims who wanted to bring Islamic banking to Australia for the first time. Together with the original founders, IBA Group is owned by Abreco Group, a UAE-based company.
The Islamic Bank Australia is not open for business yet.
Australia’s Muslim population grew from 2.6% in 2016 to 3.2% of all Australians in the recent 2021 Census. Nearly a million Australians identify as being of the Islamic faith.
“Islamic Bank Australia will first launch retail/personal banking with an everyday bank account, savings product and home finance, before moving into business banking after a full licence is received. There’s no interest. If you open a savings account with us, we’ll use your funds in ethical income generating activities, and then share these profits with you.
It’s a totally new way to think about banking. Together with the products, we’re building an incredible digital experience for our customers. We’re working as fast as we can to achieve our full ADI licence and bring our products to the Islamic community and all Australians,”
said Dean Gillespie, CEO of Islamic Bank Australia.
Gillespie was formerly the Head of Home Loan Distribution at Commonwealth Bank, and Head of Mortgages at Bankwest.
Anthony Wamsteker, Islamic Bank Australia’s Chair said,
“This is a big milestone for Australia as it provides choice, introduces diversity in Australian banking products, and provides financial inclusion for the Islamic community.”