Somali Remittance Companies' Transformation into Islamic Banks

What is it about?

Somalia's financial industry is transforming. Some remittance companies have transformed into Islamic banks, which was not easy because the remittance companies lacked the technology, finance, and human capital necessary to make the banks sustainable. Money transfer operators that transformed into Islamic banks also risked failure due to limited knowledge of the transforma­tion's effects. The purpose of this descriptive phenomenological study was to explore the lived experiences of a sample of leaders of the Somali remittance companies that transformed into Islamic banks.

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Why is it important?

This study could contribute to positive social change if other bank leaders who face the need to change from a remittance company to an Islamic bank use the study findings to ensure a successful, sustainable transformation, thus providing Somalians with greater access to Shariah-compliant products and services.

Perspectives