Ethical banking

We have pioneered Islamic retail banking in the United Kingdom since 2004. By solely focusing on banking activities which are compliant with Islamic values, and therefore free from interest, we have been able to make a significant and lasting difference to customers throughout the UK.

It is not just Muslims who have come to appreciate the virtues of Islamic finance; non-Muslims have been attracted too by great products, great service and an ethical system which is good for society as a whole.

The Islamic banking system is, at its heart, an ethical system where depositors entrust the bank to invest their savings in partnership, sharing any profits which are generated.

Al Rayan Bank does not use financial instruments, which are based on speculation and can introduce a high element of risk to customers’ savings and assets. Instead our investments are backed by real assets, such as property or metals.

Al Rayan Bank  has a dedicated Sharia Compliance Department and an independent panel of Sharia Scholars, called the Sharia Supervisory Committee (SSC), to ensure that its products and activities are wholly Sharia compliant.

So, if you bank with Al Rayan Bank  you know where your money will be invested and, just as importantly, where it will never be invested.

Ethical investment - how Al Rayan Bank invests your money

Invested Never Invested
  • Property
  • Low risk commodities, such as metals
  • Industries connected with:
    • Gambling
    • Alcohol
    • Tobacco
    • Arms
    • Pornography
  • Any other industry where the activities are not permitted under Sharia
  • Any derivative and fixed income instruments, such as options, warrants, swaps, futures, auction rate securities, and currency options, as well as structured notes on assets.
  • Any commodity which is not backed by a tangible asset

Al Rayan Bank is dedicated to strong, faith-based ethics and great customer service. The first wholly Sharia compliant retail bank in the UK, the Bank currently has over 80,000 retail, business and premier customers, and has earned a reputation for providing innovative products which appeal to people of any faith.

This approach has helped Al Rayan Bank to achieve recognition as an ethical alternative to conventional banks by the Move Your Money campaign and Ethical Consumer magazine, which places it in the top ten of ethical current account providers.  The bank also offers ethical savings accounts, and Sharia compliant mortgage alternatives through its Home Purchase Plans.

In addition, Al Rayan Bank was recently accredited as a 'Living Wage Employer' by the Living Wage Foundation, joining companies in the UK that voluntarily opt to pay their employees a 'Living Wage' which is significantly higher than the National Minimum wage.

The Bank supports a number of charity organisations, and currently partners with Islamic Relief, which is its 'Charity Partner' and National Zakat Foundation, which is its 'Zakat Education Partner'.

Find out more about ethical finance in our comprehensive guide, Ethical Banking for Everyone.

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