UK-based Shariah compliant fintech Algbra has commenced work on providing digital banking support for Shoal, the sustainable finance platform linked to Standard Chartered Bank (StanChart).
Before the end of 2024, this Algbra–Shoal partnership aims to roll out its first product of a ‘Sustainable Savings Pot’ offering, which will allow savers to earn a competitive rate of interest while their money is used to support sustainable development and the fight against climate change.
The target is part of an investment deal by StanChart unit SC Ventures, which also incubated Shoal. The deal lets Shoal leverage Algbra’s technology capabilities to distribute its products to UK retail customers while Algbra will incorporate Shoal as part of its ESG-centric B2B solutions globally.
Algbra Founder and CEO Zeiad Idris told IFN Fintech the outfit’s support for Shoal is not strictly set to deliver a publicly Shariah banking solution, even though underlying Islamic principles are still being applied.
“The tools used for Algbra’s banking solution and Shoal’s ethical approach make a very good match for each other, so there’s no conflict.”
Being a B-Corp certified fintech authorized by the UK Financial Conduct Authority as an electronic money institution, Zeiad said Algbra is able to provide Shoal its turnkey digital banking solution without a need for external or third party modules.
Joan Medland and Tom Mason, the co-founders of Shoal, explained that sustainability should be for everybody, not just for specialists or for the wealthy — by offering a savings pot that can start from GBP1 (US$1.25).
“The Shoal structure allows us to provide our clients with access to sustainable finance products not generally available to retail customers.” Joan and Tom said Shoal also provides transparency on what users’ money is used to support, in a way that helps to democratize sustainable savings.
“With Shoal’s unique Impact Calculator, they’ll also see how much carbon their savings will help avoid and how much clean water their savings will help generate while they are on deposit.”
Algbra has become the sole banking support for Shoal, which will initially focus on the UK market — with plans to expand to other geographies in due course. It takes over from Starling Bank and Solaris Contis Financial Services, which were instrumental in getting Shoal from its 2022 launch to where it is today.