History of Islamic Banking in Europe:
The current trend of Islamic banking in Europe stems from its origins ,which goes back much further than many people would think. The influence and scope of Islamic finance in Europe have been refined over the centuries and today may be stronger than ever. The history of Islamic banking goes back to the origins of the Islamic faith, some 1,400 years ago. This form of banking used some of the traditions found in Abrahamic doctrines, while also developing into the modern form of using cheques and credit as commonly found with modern banking principles. Guided by the Quran, Islam spread into many parts of Europe, establishing itself in Spain and influencing the continent in ways that still reverberate today.
Current Growth of Islamic Banking in Europe:
Today, the banking industry continues to grow amid the challenges and opportunities that are present in Europe. There are good reasons why Islamic banking in Europe is on the rise, starting with the strength of the financial institutions that are based in Islamic countries. The combination of solid economics and sound banking practices has helped spur the growth into Western countries.
In addition, the globalization of the financial markets has contributed to the rise of this form of banking. This means more opportunities for investment which means that the Islamic banks are growing stronger and becoming even more prominent in Europe. Combine that with the improved business opportunities as companies from Islamic countries compete around the world and you have an institution that only sees growth for the foreseeable future.
Growing Demands of Professionals for Islamic Finance in Europe:
Because of the growth in Islamic banking, the need for financial professionals is greater than ever. For those interested in a career in this field, the first step is getting good grades, especially in math and science to help you prepare for college or university.
In higher education, you will need to get the appropriate degree is finance with an emphasis on Islamic banking or financial practices. AIMS’ masters in Islamic banking and finance and online Islamic banking courses are two well recognized qualifications in Islamic finance field. Once you have received your degree, the next step is gaining the necessary experience in the right bank or financial institution. From there, you can continue the upward climb of your career either by staying at one institution or moving from one to another.
3 Key Challenges and How to Overcome Them?
There are challenges found in the Islamic banking in Europe system that must be addressed for continued success.
- Competition from Western Banks
- Growing Debt in Europe
- Limitations Set by Quran
The competition for business will always be a challenge for the Islamic banking in Europe, especially given the different parameters that European banks have to offer the public. While the Quran is the guiding principle behind Islamic banks, it does mean that to compete effectively, an evolving method of reaching new customers must be following.
The growing crisis of debt which is putting many European countries on the brink may offer the greatest challenge for all banks. Therefore, Islamic finance in Europe must be prepared for what might be a difficult time. Islamic financial institutions must offering halal mutual funds to grow the industry.