Algbra, a UK-based fintech with an ethical finance focus and sharia compliance, has secured strategic funding from SC Ventures, Standard Chartered’s fintech investing and ventures arm.
As per the deal, Algbra and Shoal, the sustainable financing platform of SC Ventures, will collaborate.
Customers are looking for products that help them match their financial decisions with their own personal ethics and beliefs, which is driving up demand for sustainable and ethical finance.
74% of retail finance consumers want their savings to benefit the environment, and 52% would transfer providers if they could see where their money is being spent, stated 2023 research carried out by Ecology Building Society (74% of Savers Want Positive Impact – Ecology Building Society).
Additionally, 90% of respondents to a 2023 study by the Islamic Finance Council UK said it was crucial that their bank offered products that supported the Sustainable Development Goals of the UN.
Gurdeep Singh Kohli, SC Ventures lead for Europe and Americas stated: “SC Ventures and Standard Chartered are committed to sustainable financing. We build ventures with our clients in mind, which resulted in Shoal. Combining the proposition with Algbra will enhance the customer proposition in the UK and our investment will accelerate the delivery of Algbra’s Fintech as a Service (FaaS) solution globally.”
Algbra is the first fintech that complies with sharia law and has been approved as a B-Corp by the Financial Conduct Authority and was also established by Zeiad Idris and Fizel Nejabat.
Turnkey digital banking solutions based on Algbra’s full-stack proprietary technology are available worldwide.
Idris shared: “I am thrilled for Algbra to be partnering with SC Ventures and Shoal. What is most exciting about this is the deep purpose-alignment of our companies to do good, and our commitment to go beyond the UK to serve communities in Asia, Africa, and the Middle East. I look forward to what more we can achieve together in our common quest to drive commerce and prosperity.”
There are considerable similarities between the Shoal and Algbra services, as well as across target markets.
Shoal, seeded by SC Ventures, is a B-Corp certified ethical banking platform that helps retail clients achieve financial objectives while also supporting sustainable development and climate change mitigation.
Moreover, Shoal will use Algbra’s technology to deliver its products to UK retail clients, while Algbra will integrate Shoal into its ESG-centric B2B solutions globally.
Joan Medland and Tom Mason, co-founders of Shoal, added: “We founded Shoal with a simple goal, to enable people to grow their money in a manner that benefited the world without compromising their values. We are very excited for the impact of this partnership with Algbra given our shared vision.”
