London, United Kingdom
February 04, 2010

The Next Chapter in Islamic Finance: Higher Rewards but Higher Risks

Report Published by Celent

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN

Islamic finance represents 1% of global assets. Surveys suggest that half of the 1.4 billion Muslims worldwide would opt for Islamic finance if given a competitive alternative to conventional services. The market has been growing at over 30% annually since 2000 and is set for continued strong growth.

In The Next Chapter in Islamic Finance: Higher Rewards but Higher Risks, Oliver Wyman conducts a review of the global Islamic financial services market across segments and geographies, with a focus on retail and wholesale banking, and provides insights on emerging trends and success factors within each segment.

Despite tremendous interest and phenomenal growth rates, most institutions are far from taking full advantage of that growth. Success will distinguish the acquirers from the acquisition targets in the medium-term consolidation of the sector.

Wholesale banks have a large focus on real estate and vanilla lending and offer simple products that use mostly Murabaha and Ijara structures. Retail banks are very profitable, but most banks have an undifferentiated product offering, poor client servicing, and sales efficiency problems.

This 38-page report contains 34 figures and three tables.

A table of contents for this report is available online.

Members of Celent's Corporate Banking and Retail and Business Banking research services can download the report electronically by clicking the icon to the left. Please note that analyst access is not available for this report. Non-members should contact info@celent.com for more information.

 

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

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