How do you lend money when you can’t charge interest? Banks in the Muslim world are figuring out how—and winning non-Muslim customers

(Credit: Courtesy of Maybank)

Conventional finance—loans, mortgages, interest payments—greases the wheels of modern business. It seems almost impossible to think of a consumer or company operating without credit. 

But what if a key part of conventional finance—interest—wasn’t allowed? Banks in the Muslim world have been developing their own version of finance that doesn’t rely on interest payments, barred under some interpretations of Islamic law. And they’re finding a market ready for these alternative financial products in Southeast Asia—and not just among practicing Muslims.