Mambu, the composable core banking and payments platform, today announced the launch of its enhanced Islamic banking capabilities, designed to empower financial institutions to build, deploy and scale Shari’ah-compliant products with speed, transparency and confidence.

With assets expected to surpass $3.8 trillion by the first half of 2025, the Islamic banking sector is primed for scale. Yet many banks across the Middle East and Africa (MEA) and Asia-Pacific (APAC) are operating on infrastructure that cannot support the demands of today’s customers or the pace of change in financial services. Mambu’s latest advancements provide a future-ready foundation for ethical finance, enabling banks to meet growing customer expectations and regulatory requirements while staying true to Islamic principles.

“This launch marks a significant milestone in our commitment to ethical and inclusive finance and to our customers in APAC and MEA,” said David Becker, market sales director, APAC. “Mambu’s cloud banking platform coupled with our powerful Islamic Profit Sharing capabilities ensure financial institutions now have access to powerful tools that reduce complexity, automate compliance and accelerate time to market, all within a fully Shari’ah-aligned framework.”

Mambu's cloud banking platform has a proven track record of enabling financial institutions to modernise and launch their Islamic banking offerings. Building on this success, its newly enhanced Islamic banking capabilities are already gaining significant traction, allowing new and existing customers to streamline operations, optimise product development and launch Shari’ah-compliant solutions with unprecedented ease, speed and scalability.

Mambu's expanded Islamic banking offering provides a comprehensive suite of tools for Islamic banks and those looking to offer Shari’ah-compliant products. The new and improved capabilities include:

• Islamic Profit Sharing (IPS): A powerful, purpose-built engine designed to automate, streamline and scale Islamic banking operations. By automating the fair calculation and distribution of profits, IPS significantly reduces operational risk while ensuring full transparency and alignment with Shari’ah principles.
• Islamic funding solutions: Supports current and savings account products based on true profit-and-loss sharing principles such as Mudarabah, Wakalah, Wadiah, Qard Hassan and Tawarruq.
• Islamic financing solutions: A flexible engine that supports a range of Shari’ah-based financing products for personal, SME and asset-based needs including Murabahah, Tawarruq and Qard Hassan.

With Mambu’s true SaaS architecture and low-code product configuration, financial institutions can scale operations across Islamic and conventional banking systems while maintaining clear separation between them. Mambu’s dual-banking support enables seamless expansion into new markets, backed by real-time performance, built-in security and regulatory tools.

“Islamic banks don’t just need digital tools, they need a flexible foundation built for ethical growth,” added Harjit Kang, head of Middle East and Africa. “To remain competitive in a digitally transforming region, Islamic banks must adopt new technologies; innovators will gain first-mover advantages, while those who fail to adapt risk being left behind. Mambu enables them to lead with agility, trust and purpose.”

Mambu’s upgraded offering includes a comprehensive set of tools to support Islamic deposit and lending products including Qard Hassan, Wadiah, Tawarruq, Murabahah, Mudarabah and Wakalah with the ability to launch new products in weeks, not months.

As part of Mambu’s ongoing commitment to supporting ethical, Shari’ah-based finance, Mambu is introducing IPS, a powerful, purpose-built engine designed to automate, streamline and scale Islamic banking operations.

At its core, IPS tackles one of the most complex and crucial aspects of Islamic finance: the fair calculation and distribution of profits. By automating these intricate processes, IPS significantly reduces operational risk while ensuring full transparency and alignment with Shari’ah principles. It empowers banks to bring innovative, profit-sharing products to market faster than ever before.

Banks using IPS can easily configure Islamic deposit products and calculate average balances, gaining detailed insights into profit distribution across pools, products and individual accounts. From applying profits and taxes to allocating the bank’s share, every step is handled seamlessly through automation, eliminating manual errors and ensuring integrity at scale.

Mambu’s IPS engine also supports a wide range of Islamic deposit contracts, enabling financial institutions to tailor their offerings to diverse customer needs:

• Wadiah: A safe custody arrangement with optional hibah (gift) rewards, ideal for wallets and current accounts.
• Qard Hassan: Benevolent, zero-interest current accounts that uphold the principle of safekeeping without profit.
• Tawarruq: Structured term deposits offering pre-agreed returns, providing predictability for savings customers.
• Mudarabah: Revenue-sharing investment accounts, including both restricted and unrestricted options, giving depositors a stake in the success of the underlying investments.
• Wakalah: Agency-based investment contracts that offer target returns with full disclosure and transparency.

With IPS, Islamic banks now have the agility, accuracy and compliance tools they need to confidently innovate and grow in an increasingly competitive and values-driven financial landscape.

Each contract is easily configurable in Mambu with full transparency and auditability, giving banks the flexibility to serve both retail and SME segments while meeting compliance standards.

Banks can also build and manage Shari’ah-compliant financing products for personal, SME and asset-based needs. Supported structures include:

• Murabahah: Sales-based financing with clear profit margins and dynamic repayment scheduling.
• Tawarruq: Cash financing through compliant asset-based transactions, ideal for credit cards and loans.
• Qard Hassan: Socially impactful, interest-free loans tailored for microfinancing, education, or emergency needs.

Redisseminated by The Asian Banker