The power of one: Why every FI should consider offering a Shari’ah-compliant product

Entering the Islamic banking market doesn’t require a new subsidiary, a full product suite, or a complete systems overhaul. In fact, the most successful banks often begin with just one Shari’ah-compliant product – a manageable first step that builds internal confidence, validates demand, and lays the groundwork for future growth. This “learn by doing” approach can help keep risk low while unlocking one of the fastest-growing segments in global finance.

The key is choosing the right entry product. Many institutions start with service-based offerings that are operationally straightforward and ideal for payments-focused portfolios such as:

• Ujrah card. In this model, cardholders pay a flat fee for using the card or credit facility, and this fee remains constant regardless of the user's actual spending volume
• Charity (Tabarru’) card. Like Ujrah, it is a service-based offering where profitability is driven by fixed fees instead of interest. However, it specifically incorporates a charitable framework (such as supporting community or social causes) directly into the payment product's setup

Others opt for cost-plus models like:

• Murabaha card. It offers a Shari’ah-compliant alternative to traditional credit, structured as a one-time, fixed-profit sale contract rather than interest-based borrowing
• Shari’ah-compliant BNPL. Models may vary in structure but share key features such as: no interest, fixed fees, and clear terms. All transactions are backed by actual goods or services, ensuring Shari’ah compliance

Starting small doesn’t mean thinking small – it means creating a scalable foundation. One compliant product can help banks engage with Shari’ah governance, demonstrate commitment to ethical finance, and begin capturing a loyal, values-driven customer base. For forward-looking institutions, the first step is the most important one: just start.