Islamic financial institutions are increasingly using blockchain technology for complex financing terms, Shariah-compliant transactions and Islamic and sharia-compliant alternatives to conventional insurance. Blockchain can assist in KYC, back-office automation, and underwriting of micro-insurance.
Emirates Islamic was the first Islamic bank to test blockchain. It is part of the UAE’s Emirates NBD banking group. As early as 2017 the bank integrated the technology into cheque-based payment processes. This strengthened their authenticity and minimized the potential for fraud.