Indonesia’s Shariah fintech prospects and Apple’s new savings account

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Will Gen Zs change the world?

Their tastes and preferences matter, evident from the way they are consuming content (a la TikTok) and how brands and companies are responding.

It turns out that the Gen-Z population – in particular those below the age of 30 – will be a critical determinant of, wait for it … Islamic fintech prospects.

At 230 million, Indonesia has the largest Muslim population in the world. However, its market size for Shariah fintech transactions trails behind that of Saudi Arabia and Malaysia, my colleague Budi writes in this week’s Big Story.

The low Shariah fintech penetration rate in Indonesia can be attributed to a number of factors such as limited financial literacy and education, low budget allocation toward the industry, and dependence on conventional VC firms for capital.

But if the country’s Islamic fintech startups are able to tap the growing awareness of a halal lifestyle and highlight the ease of Shariah fintech solutions among the youth, they could very well move the needle.

On the topic of youth – and perhaps beyond – users in the US would have cheered the launch of Apple’s highly anticipated savings account. With an attractive savings rate and slick dashboards, what’s not to like? I discuss this and more in this week’s Hot Take.

— Melissa

THE BIG STORY

Indonesia’s ascent to the top of global Islamic fintech faces obstacles

Image credit: Timmy Loen

The archipelago has more Shariah fintech players yet a smaller market size than Malaysia and Saudi Arabia.

THE HOT TAKE

Would you use an Apple bank account?

NEWS YOU SHOULD KNOW

FYI