On 30 August 2024, Waafi Bank, a Malaysia-based start-up, announced that it has selected The Bank of London as its banking services provider to support its expansion into the UK market. This partnership aims to facilitate Waafi’s entry with its Shariah-compliant banking offerings, aligning with its global vision to provide Islamic financial solutions.
Partnership Details
Waafi Bank, established in 2020, is dedicated to offering financial products that adhere to Islamic principles. The selection of The Bank of London, a principal UK clearing bank known for its unique ‘safer by design’ model, underscores the start-up’s commitment to ethical banking. Unlike traditional banks, The Bank of London does not invest, leverage, or loan out client deposits; instead, it keeps all client funds securely with the Bank of England.
Dr Ashraf Iqbal, Chairman of Waafi Bank, emphasised the importance of this model for their operations. “From the very first meeting, The Bank of London understood our needs when it comes to providing Shariah-compliant accounts. It’s important to us that the bank we look to help our business grow is not leveraging, loaning or investing any money we deposit somewhere else. We are delighted to partner with The Bank of London as we expand our business into the UK.”
The Bank of London’s Role
The Bank of London’s operating model is crucial for Waafi’s strategy. Felipe Hillard, Chief Client Officer at The Bank of London, expressed enthusiasm about the collaboration. “We are pleased to announce Waafi as a client partner and play our part in supporting their move into the UK market. For businesses like Waafi seeking a bank partner they can trust, our operating model aligns with and supports their growth ambitions. We look forward to building on our relationship with Waafi as it continues to expand its offering.”
About the Banks
The Bank of London offers a range of business-to-business banking solutions, including clearing, payment, and settlement services. It is authorised by the Bank of England’s Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The bank’s model ensures that all client money is held securely, available on demand, and not subject to investment or leveraging.
Waafi Bank, founded with a vision to bring Islamic banking to every corner of the globe, aims to provide Muslims with financial solutions that align with their faith. Its entry into the UK market is a significant step in expanding its global reach.
Conclusion
This strategic partnership between Waafi Bank and The Bank of London marks a significant development in the Islamic banking sector. By choosing a banking partner that upholds a no-lending, no-investing policy, Waafi ensures that its clients’ funds remain secure and compliant with Shariah principles. The collaboration promises to enhance the availability of Shariah-compliant financial services in the UK and supports Waafi’s global expansion efforts.
