Islamic Finance Structure

A challenger bank providing Islamic financing solutions in North America, focusing on faith-compliant mortgages for Muslims who can't use traditional interest-based loans due to religious restrictions.

Key Points:

• Core Product:

  • Faith-compliant mortgages averaging $500,000
  • Mechanism approved by religious leaders as Sharia law compliant
  • Alternative to traditional interest-based mortgages

• Market Opportunity:

  • Established models exist in Muslim-majority countries (Africa, Indonesia)
  • Untapped market in US/Canada where Muslims are minority
  • Target market of ~22 million Muslims in America
  • Focus on "super prime" applicants (doctors, lawyers with good jobs)

• Business Model:

  • Two-sided marketplace:
    • Investors providing capital for loans
    • Borrowers seeking halal financing
  • Each mortgage generates ~$20k/year in fees
  • Currently have $10M committed from investors
  • ~1,000 applicants in pipeline

• Current Traction:

  • $10M total committed capital ($1.2M in bank)
  • Capacity to fund ~20 mortgages at $500k each
  • Spent 1-2 years developing compliant financial mechanism

• Structure:

  • Operates as a challenger bank/neobank
  • Partners with established banks for backend operations
  • Provides consumer-facing layer and relationship management