No interest income and no investments in alcohol: Insha wants to convince all of Europe with the Islamic banking system.
A year ago Insha started as a startup with its own banking app in Germany. A lot has happened since then and the plans for the future are great. At first glance, the modern and clear design of the app is reminiscent of other financial startups such as N26, and that is exactly what Insha sees as its competitor. Insha, however, operates according to the rules of Islamic banking. This means that the Halal Banking principle is used and interest, for example, is prohibited. So far there are hardly any such offers in Germany or Europe. Institutions that act according to Islamic laws have strict rules, so investments in alcohol, tobacco, weapons or gambling are prohibited. Anyone who pays at an online casino with a credit card from an Islamic-compliant bank must therefore expect their account to be blocked. However, there is no uniform regulation of what is and what is not in accordance with Islam and each company decides for itself which guidelines should be complied with.
From Germany to France and Great Britain
Insha is now aiming to expand into France and Great Britain in 2020. One hopes for big business in Europe, because after all more than 20 million Muslims live in the EU and thus many potential customers. In times when ethical and sustainable investments are becoming more important, they also want to reach non-Muslims. Many younger bank customers in particular should be attracted by the special type of banking. Insha offers a free current account that can be easily managed from anywhere using the app. Revenue is generated through paid transactions such as international transfers. With the expansion, a fee-based account with premium functions, for example for business customers, is to follow.
Strong cooperation partners
As a German cooperation partner, Solarisbank has so far provided the banking platform, as Insha does not yet have its own banking license. MasterCard takes care of the provision of the debit card. But Insha can point to other strong cooperation partners, such as Albaraka, together with Solarisbank, behind the technology and infrastructure of fintech. Albaraka Türk Participation is a bank based in Istanbul and the origin of Insha. Insha describes itself as a European company, but the cooperation with Istanbul is still close and should continue to contribute to its success in the future. The subsidiary also receives the financial backing for the planned expansion.