Texas-based Islamic digital banking start-up Fair was accepted as a member of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
This has lended strength to the Shariah integrity of the start-up who’s ultimate goal is to help address the “longstanding racial income inequalities and widening wealth disparities in the U.S.” The bank aims to serve the marginalized communities which are often overlooked by conventional banks.
Fair, a multilingual digital bank and financial services platform, raised US$20 million in February in funding from private investors ahead of its public launch expected in the first half of this year.
Fair is currently offering basic banking services such as remittance and debit cards to its members through its sponsor bank, Washington’s Coastal Community Bank.
The digital bank will also widen its range of products to include credit cards, high-yield dividend savings accounts, business dividend accounts, buy-now-pay-later interest-free microfinancing, Riba-free equity-based financing, pension programs, trust and estate planning as well as investment products in line with socially responsible investing and environmental, social and corporate governance principles.
Achieving Shariah compliance was Fair’s goal in order to appeal to the religious-conscious community. The digital bank also channels 2.5% of its profits to the UN Refugee Agency.
Fair’s founder Khalid Parekh, an immigrant who struggled to access traditional financial services when he arrived in the US, raised the capital primarily from the very demographic that Fair aims to serve- a number of immigrants, many of whom were first-time investors.
Parekh is also the founder and CEO of AMSYS Group, an enterprise value company operating in technology, capital and healthcare sectors, valued at US$350 million.
Source IFN Fintech