WHAT ARE THE SHARIAH CONCERN WITH RESPECT TO NEOBANKS

When it comes to Sharia Concepts I guess it just depends on the life cycle where a Neo bank is in its life cycle because think of a near Bank having an economic life cycle and a business life cycle it begins like any Venture Capital right a venture capital if anybody sees the life cycle of venture capital where it's in the start of phase and it's in you know  Venture Capital phase and it's in growth phase maturity and decline these are the different phases that a company goes through its business life cycle and so a Neo Bank is still in a startup phase is very much early phase and therefore generally doesn't have its own license it relies upon the license offer

In the bank it generally it's connected it's white labeling the services of another bank and so for a Neil bank which is in its primary you know startup phase, it must make sure that the funds that it has been ring-fenced and is not integrated within you know interest bearing deposits interesting accounts or when it when they're using the services of a Traditional Bank it shouldn't be what a Traditional Bank is deploying those funds for interest transactions it should be at you know to the furthest extent possible reinforcing of funds that's the more that's the greatest concern and it's of course that's probably a back-end perspective.

From the front end, a new bank cannot offer any surveys which are not sure you're compliant so all of its services need to be structured at the rate which is which I'll show you compliant therefore bank accounts can't offer any interest on savings that you have any current account any remittances must be done in a Sharia compliant way as we mentioned a Neo Bank allows people to remit funds across the world so that structure and process needs to be share your compliant as well because not every remittance.

If you're a complaint just depends on what's actually happening that you know the fees the charges the way funds are moving flowing what's happening in the interim these things need to be addressed likewise charity payments if a Neo bank is offering the ability to pay zakat it must make sure that you know it's dealing with that properly because dealing with the car is not a light matter right so it's a very serious matter because a lot of governance so Sharia governance framework must be robust to ensure that the car is being paid in a correct way and being Channel to the correct Source.

If you're paying a charity the charity needs to be vetted to ensure that it's practicing policies I'll show you a compliance right likewise if a newer bank is offering  you know other services all such Services need to be  one for example cashback is another one some new events offer cashbacks now the cashback has to be structured in a way which ensure you're compliance right and there's a way to structure I'll show you a compliant cashback which I've personally developed as well for a a challenger Bank where are structured for them there  cashback Services how to do initially compliant way  some Challenger Banks might be offering you know points points on certain things some Challenger Banks, I know have have taken Sharia compliance to such a level whereby they're not allowed to use their cards to purchase alcohol or to purchase Casino Services you can't use according to a casino but to that level and depth they have controlled over the banking codes so these are I think them key concerns for a challenger bank.

Especially the banks which are in their infancy of course when I bank now moves and grows into a full-fledged licensed bank and it's in its mature phase then there are a number of other factors in the way it manages funds and the products that is offered now because it's has its own license it can offer many more products and services as a bank so each product and services would need to be reviewed structured in a Sharia compliant way it would need to be certified you need to be audited they need to have a constant iterative review and constant worker point to ensure that everything is running smoothly and that's where the role of Scholars would come in to ensure that everything is running smoothly as has set out to be initially.

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