Abdullo Qurbonov, one of the founders of the successful fintech bank Alif Bank in Tajikistan, has revealed plans to enter the United Kingdom (UK) market in an interview with Asia-Plus.  Although the opening of a full-fledged bank is still in progress, Ayan Capital has reportedly already begun providing Islamic financing services for legal entities and individual entrepreneurs.

Q. How did you decide to open an Islamic bank in the UK, and what was your motivation?

A. Right now, it is premature to talk about opening an Islamic bank in the UK.  We are just beginning a long and complex journey toward this goal, but we believe it is possible.

Our journey started in Tajikistan.  The process of obtaining a license was relatively quick—we managed to get our first license in 2014 in just three months.  Few countries in the world allow obtaining a central bank license in such a short time.

The banking regulatory system in Tajikistan is favorable for fintech and innovation.  Therefore, we could adhere to our internal principles and requirements within the framework of traditional banking regulations.  We created much of Alif from scratch, including our own banking technology platform, core banking system, CRM, payment systems, mobile applications, etc.  Thanks to the people, innovations, IT systems, and products we developed at Alif, we believe we can become a global leader in Islamic fintech.

Muslims make up about 25% of the world's population, but among the 1.7 billion people without access to banking services, 47% live in Muslim-majority countries.

The financial sector is strictly regulated, and most services require a banking license.  We studied many countries and found that in most, foreigners cannot independently open a bank.  Often, a local key shareholder is required.

Additionally, in many countries, the minimum required capital for obtaining a banking license is very high—from US$50 million to US$100 million or more.

In the UK, however, a local shareholder is not required, and the minimum capital is about US$5 million.  The UK is also the center of Islamic finance in the West, with assets ten times greater than those in the United States.  The Muslim population is also growing: 6.5% of the total population (4.9% ten years ago). Therefore, the UK is well-positioned as a potential bridge for the Islamic financial world.

Our research showed that Islamic banks in the UK do not sufficiently meet market demand—their combined assets are about $9 billion, while the country's total banking sector is over $9 trillion. We believe we can help the industry grow faster, which is why we decided to expand our operations here.

Q. What is the story behind the creation of Ayan Capital, and what did you decide to specialize in?

A. We were looking for the quickest way to test our hypotheses without spending 3-4 years obtaining a banking license and risking potential mistakes. Our research revealed that it is possible to provide business financing without a full lending license by registering with the FCA. We considered various areas of business financing and ultimately focused on one specific niche: financing individual entrepreneurs involved in private passenger transportation, such as Uber and Bolt drivers.

Q. Why this segment?

A. Firstly, local transport authorities actively promote the transition to environmentally friendly vehicles—electric and plug-in hybrid cars. These vehicles are expensive and require financing, averaging around US$40,000.

Secondly, drivers gain many benefits from switching to these vehicles—they can save on various fees, such as congestion charges, and earn more as Uber offers better rates for electric vehicle drivers.

Thirdly, about 70% of PHV (Private Hire Vehicle) drivers in the UK come from Muslim countries—mainly Pakistan, India, Bangladesh, Somalia, Afghanistan, etc.  However, no company offering car financing provides services in line with Islamic finance principles.

Fourthly, this segment is quite large: there are over 400,000 PHV and taxi drivers in the UK.  Uber has about 50,000 vehicles in London and aims to have 100% of these vehicles be electric by the end of 2025.  Currently, only about 20-25% are electric, meaning around 40,000 vehicles still need to be converted.

Assuming that 70% of these drivers would prefer Islamic financing and that each car costs around US$40,000, this market will require over US$1 billion in financing in the next two years.

Lastly, these drivers are considered businesses—they provide services and generate income.  Considering all this, we decided to start with this segment and gradually expand our services.  We calculated that if we serve this market with lower capital costs, we can offer better service at a lower price.

The Islamic aspect of financing is just one element of our offering. We also pride ourselves on providing a very high level of customer service.

Q. What challenges did you face when starting and developing Ayan Capital, and what steps were taken to overcome them?

A. Launching the product was the first major challenge.  Many people on our team have been working 70-90 hours a week under uncertain conditions.  Before the product launch, it felt like moving through thick fog: we were unsure if we would encounter obstacles. However, we had to keep working, find solutions, and stay alert.  Gradually, the situation has become clearer.

Meanwhile, Raisin says as Islamic banking becomes more popular, the number of UK banks offering Sharia-compliant products is also growing.  Around 20 banks in the UK now offer Islamic financial products and services, and five of these banks are fully Sharia-compliant.

In fact, the UK is considered a leader in Islamic banking among Western countries, and has the highest Islamic Finance Country Index ranking of any European or non-Muslim majority nation.

Institutions including QIB UK, Gatehouse Bank and Al Rayan Bank are just some of the banks that offer Islamic finance services in the UK, although there are many more to choose from.