Australia is a vibrant and multicultural country—and we’re not saying this just because, but it is due to the fact that every aspect of development in their society has opened their doors to diversity, including financial services. Even if some people are only getting to know Sharia finance services, it is a good start to have an idea of it because of its ethical and inclusive approach to money management. Let us help you with the guidance of Sharia finance services Australia to understand the basics and explore the options available that might suit your financial life in the future.
What Are Sharia Finance Services?
At its core, Sharia finance—or Islamic finance—is an ethical way of managing money based on Islamic law (Sharia), but before you close this article, we want to stress that this service is not exclusive to Muslims. In fact, its idea focuses on fairness, ethical practices, and shared risks to the financial service, especially those banks that use your money for suspicious ventures.
Why Are Australians Turning to Sharia Finance?
Although Sharia finance was initially developed to meet the needs of Muslim communities, its focus on ethics and fairness has made it appealing to the community’s openness to diversity, especially to its environmentally sustainable investments.
How Is Sharia Finance Different from Traditional Banking?
Here is a breakdown of the differences in Sharia finance from conventional banks:
- Instead of you earning or paying bank interest, this finance scheme relies on profit sharing, having both parties share the potential gains and losses of the financial agreement.
- The transactions you and your bank have will be backed by tangible assets, which ensures that funds are invested in industries that benefit society.
How to Get Started with Sharia Finance
Sharia finance is getting the popularity it deserves, so if you are interested and want to explore your options, here is a guide to get you started:
- Sharia finances are readily accessible through known banks in Australia, especially banks that cater to the Islam community.
- Everything will depend on your financial needs, even with these services, so make sure you research and compare the products before shortlisting the banks.
- If you find it difficult to understand the terms of each product, these banks offer consultations so they can tell it to you in simpler terms.
- Whichever you choose, start small and open a savings account with the amount that you are willing to spend to try it out. When you feel like this bank really aligns with your values, decide whether to continue it on a more updated term.
Be conscious of your financial health.
The spending patterns of our community today depend on where their money is going, and this does not specifically apply to faith-based principles, but mostly because we value fairness, responsibility, and accountability now more than ever. This only cements the principle that community values should always be a part of the development of any society even as it progresses.