Islamic banking is scaling up with nocode technology

Islamic banking is a promising niche, but the technical threshold for entry is high.


In 2023, the Bank of Russia launched an experiment on the formation of an Islamic banking system in the country. At the moment the experiment is still operating in four regions, but it is planned to expand to the entire territory of the Russian Federation. The total volume of Islamic financial assets exceeds 4 trillion dollars, with Islamic financial assets growing by 17% every year. In mid-October, the first interregional transaction on Islamic banking took place in Russia. banking. The amount of financing raised, according to the organizer, amounted to 40 million rubles.

Islamic banking has a number of restrictions, including a ban on interest accrual, a restriction on investments in prohibited areas, and the obligation to share risks and income between the bank and the depositor. This means that banks need to develop similar services to meet these requirements in order to take a share of this market. According to Redhat, nocode technologies can reduce labor costs for creating services by 50-90% and require 70% fewer resources than traditional development.

 “Nocode will help level the playing field in technological competition for those banks that want to develop but cannot afford large inhouse development teams. The solution itself will do the job after implementation and initial customization,” - Nikolay Adeev, Abanking Board #1.

Source: Bankovskoye Obozreniye