Islamic Bank Australia (IBA), the country’s first-ever Islamic bank, has received a restricted authorised deposit-taking institution (ADI) licence from the Australian Prudential Regulation Authority (APRA) and plans on commencing beta testing in 2023.
Founded in 2020 and based in Sydney, IBA operates as a brand under the company IBA Group. It aims to bring Shariah-compliant banking to Australia.
According to the bank, the restricted ADI period will last for a duration of two years, during which time it plans on building out its systems and testing and trialling its products with a select number of customers in 2023.
“Upon successful completion of a limited launch, we aim to obtain APRA approval to launch to the general public,” IBA says. “This won’t be until 2023 or 2024.”
IBA Group was founded by 13 Muslims, who are also shareholders along with UAE-based firm Abreco Group.
While the bank is not currently open for business, it plans on offering products such as an “everyday” account, term deposits and home finance.
The firm says its products will be endorsed by internationally renowned Islamic scholars to ensure they are Shariah-compliant.— Fintech Futures