Nigerian fintech firm Enricher is gearing up for global expansion, targeting the UK and North America.
The goal is to tap into the increasing demand for Islamic-compliant financial services.
Research from 2021 highlighted significant growth potential for Islamic finance in African nations with substantial Muslim demographics.
Enricher’s founder and CEO, Shakirat Animashaun, emphasizes the global potential of their platform.
She acknowledges the limitations of being solely in the African market and sees vast opportunities overseas.
Islamic banking assets had impressive growth, reaching US$2.8 trillion in 2021, with projections suggesting it could hit US$4 trillion by 2026.
The UK dominates in Europe, hosting 45 of the 68 Islamic fintech firms.
Islamic finance is unique; it bans interest collection and payments, focusing on equity participation and risk-sharing.
Investments in sectors like alcohol, gambling, and weapons are prohibited.
Instead of interest, Islamic finance offers alternatives like Sukuk, which gives investors partial asset ownership and a share of the revenue they generate.
There’s a significant demand for such services in Nigeria, where Muslims comprise 52% of the population.
Many Muslims feel traditional financial systems may not align with their religious beliefs.
Enricher, headquartered in Abuja, is looking to secure US$2 million to fund its expansion.
Animashaun is considering collaboration with Silicon Valley’s Funding Lab and seeks global partners with shared values.
Originally established as an educational entity in 2020, Enricher transitioned to fintech due to the lack of finance options adhering to Islamic rules.
Their platform caters to individuals and businesses, offering halal-compliant financial tools tailored for each client.
Up until now, the firm has raised US$750,000, supporting various projects from climate ventures to real estate and tech education.
Financial technologies, or FinTech, can offer solutions for marginalized groups in Africa.
Especially for the Muslim population, there’s an urgent need for inclusive finance models.
Specialized fintech can play a crucial role in increasing financial inclusion among the predominantly unbanked Muslims in the region.