• Wednesday, February 21, 2024
businessday logo

BusinessDay

i-invest introduces new product to enhance financial inclusion

Unveiling the path to economic empowerment: Financial inclusion in Sub-Saharan Africa

As part of efforts to enhance the financial inclusion drive of the Central Bank of Nigeria (CBN), i-invest, one of Nigeria’s foremost digital platforms for Treasury Bills, has recently unveiled the Mudarabah Term Deposit (MTD) on its innovative digital platform.

The introduction of this Islamic financial concept represents a pioneering initiative to provide users with a Shariah-compliant alternative for ethical investment.

The Mudarabah concept, deeply rooted in Islamic finance, symbolizes a partnership contract between an investor providing capital and an investment manager. This distinctive arrangement involves the investor entrusting funds to be skillfully managed by the investment manager, with profits shared based on a pre-agreed Profit-Sharing Ratio (PSR).

Within the banking sector, Mudarabah has evolved into a bespoke investment product, offering a Shariah-compliant alternative to conventional fixed deposit products – the Mudarabah Term Deposit (MTD). Under this arrangement, customers play the role of investors, depositing funds into their accounts. The Profit-Sharing Ratio is collaboratively determined, ensuring a transparent and mutually agreed-upon structure. Subsequently, the deposited funds are strategically deployed to permissible investment sectors by the partner bank.

One of the key features of the Mudarabah Term Deposit is its transparent and mutually beneficial structure. Customers and the bank jointly determine the Profit-Sharing Ratio, fostering a collaborative approach to financial growth. The deposited funds are carefully invested in sectors compliant with Shariah principles.

As the investment period concludes, the gross profit generated from the Mudarabah Term Deposit is shared between the customer and the bank based on the pre-determined Profit-Sharing Ratio. This ensures a fair and equitable distribution of profits, aligning with the principles of Islamic finance.

i-invest’s introduction of the product signifies a bold step towards providing users with ethical and inclusive investment opportunities, reinforcing the platform’s commitment to innovation in the financial technology sector.

The move is expected to resonate positively with individuals seeking Shariah-compliant alternatives and further diversify i-invest’s offerings in the digital investment landscape. “At i-invest, we are committed to inclusivity and providing our customers with innovative investment opportunities that align with their values,” remarked Tobi Olusoga, Chief Operating Officer at i-invest. “The Mudarabah Term Deposit product is a testament to our dedication to ethical and compliant investing, ensuring that our customers’ investments resonate with their values and beliefs.”

i-invest’s new product offering is a carefully curated investment package, embodying Shariah compliance at its core. Upon maturity, the capital, along with the profits, is returned to the investor, reinforcing the commitment to transparency and ethical financial practices.

The Mudarabah Term Deposit is poised to empower investors seeking a Shariah-compliant and inclusive investment experience and can be accessed by downloading the i-invest app, completing registration, and subscribing to the ethical investing feature.

i-invest is a leading investment platform committed to providing innovative and inclusive investment solutions. The platform grants users access to diverse investment opportunities from various financial service providers within one safe and secure environment. Committed to the highest standards, i-invest is PCI-DSS compliant and holds ISO 27001 certification – the globally recognised standard for information security management systems.