Islamic open finance: the same APIs, different contracts underneath
Open finance moves data and instructions the same way for every product. What changes for Islamic finance is what the data describes: ownership, profit ratios and funds that belong to participants. Plus this week's business calendar: 5 business days.
Transcript
- Amina
Hi! This is Two Minutes, from IslamicOpenFinance™. I'm Amina, here with Yusuf.
- Yusuf
Hello everyone!
- Amina
We're starting a weekly series on Islamic open finance. Is it a different kind of open finance?
- Yusuf
Not in the plumbing. Consent, licensed providers, APIs and secure messages work the same way. The UAE's regulation, for example, covers data sharing and service initiation for every product.
- Amina
So where's the difference?
- Yusuf
In what the data describes. A murabaha is a sale with a fixed price, not a loan balance. An investment account shares profit and loss. A takaful policy touches two funds.
- Amina
And if the API just calls everything a loan or a deposit?
- Yusuf
Then customers can be shown promises their contracts don't make, like a guaranteed return. And the evidence Shariah boards need, such as ownership before sale, gets lost.
- Amina
What will we cover each week?
- Yusuf
One contract or process at a time: what it requires, what the standard setters say, and what the data should record. Usually that means a few extra fields and steps in the right order.
- Amina
And this week's business calendar?
- Yusuf
This week has 5 business days.
- Amina
The written version and the details are on the IslamicOpenFinance™ blog.
- Yusuf
Our voices were made with AI. See you next week, bye!