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As someone who actively participates in the Islamic finance industry as a client, consultant, and observer. I’ve had a front-row seat to the growing problem of miscommunication in the marketing of Islamic finance products. It’s an issue that not only stems from a lack of understanding among marketers but is also exacerbated by the pressure to meet conventional sales targets. These factors together create a perfect storm, leading to the misrepresentation of products that are supposed to be rooted in ethical and religious principles. Before you jump into conclusions, hear me out first.
Islamic finance is based on principles that are fundamentally different from those of conventional finance. Concepts like Riba (interest), Gharar (excessive uncertainty), and Maysir (gambling) are not just prohibited they are replaced by ethical alternatives that encourage risk-sharing and mutual benefit. These differences make Islamic finance both appealing and complex, which should be a selling point, but too often, it becomes a stumbling block.
As a client, I’ve encountered situations where the marketer struggled to explain the products in a way that was clear and comprehensive. For instance, when I was first introduced to Murabaha (cost-plus financing), the marketer simplified it to the point where it sounded almost identical to a conventional loan. I was left wondering: if this product is so similar to what I can get elsewhere, why should I choose it? It wasn’t until I did my own research that I understood the ethical and Shariah-compliant benefits Murabaha offered.
This experience isn’t unique. I’ve seen many clients walk away from potential deals because they didn’t understand what was being offered, or worse, they felt misled by oversimplified explanations. This kind of miscommunication doesn’t just result in lost sales; it erodes trust in the entire industry.
As a marketing consultant, I’ve worked with Islamic financial institutions that, despite their commitment to Shariah principles, still operate under the conventional finance playbook when it comes to setting sales targets. The pressure to hit these targets can be overwhelming, and it often pushes marketers to prioritize quantity over quality.
I’ve sat in strategy meetings where the focus was entirely on numbers how many products could we push this quarter? How quickly could we convert leads into sales? There was little to no discussion about whether the clients truly understood what they were signing up for or whether the products genuinely met their needs. In these environments, it’s easy to see how miscommunication happens. Marketers, driven by the need to meet their quotas, may gloss over the complexities of Islamic finance, offering a one-size-fits-all pitch that fails to capture the essence of what these products are supposed to represent.
The consequences of this miscommunication are far-reaching. From my perspective as an observer, the most significant damage is done to the trust and credibility of the Islamic finance industry itself. Clients who feel they’ve been misled are not just likely to abandon a particular product they’re likely to lose faith in the entire system.
In a market where trust is paramount, especially given the ethical and religious dimensions of Islamic finance, this loss of credibility is a serious concern. I’ve observed clients who, after one bad experience, opted to return to conventional finance products, feeling that Islamic finance was too opaque or too similar to conventional options to be worth the effort.
Furthermore, this issue isn’t just about losing clients it’s about failing to live up to the ethical standards that Islamic finance is supposed to uphold. When products are miscommunicated, we’re not just making a poor business decision; we’re betraying the trust of the clients who come to us for financial solutions that align with their values.
To address these issues, Islamic financial institutions need to take a hard look at how they train their marketers and how they set their targets.
First, marketers need more than just surface-level knowledge of Islamic finance. They need to understand the products deeply enough to explain not just what they are, but why they exist and how they differ fundamentally from conventional alternatives. This kind of training isn’t a one-off it should be ongoing, with regular updates as the market and the products evolve.
Second, institutions need to rethink how they set sales targets. Instead of mirroring the aggressive, volume-driven targets of conventional finance, Islamic finance should set goals that align with its ethical values. This might mean prioritizing client education, customer satisfaction, and long-term relationship-building over short-term sales numbers.
Finally, there should be a stronger emphasis on ethical marketing practices. This means not just avoiding misleading claims but actively ensuring that all communications are clear, accurate, and reflective of the true nature of the products. Marketers should be rewarded not just for the quantity of sales they generate, but for the quality of their client interactions.
The miscommunication of Islamic finance products is a problem that needs urgent attention. As someone who has experienced the industry from multiple perspectives, I’ve seen the damage that can be done when products are not properly communicated. It’s time for Islamic financial institutions to invest in better training for their marketers, set more ethical sales targets, and ensure that their marketing practices truly reflect the values of Islamic finance. Only by doing so can we build a sustainable industry that lives up to its promise of providing ethical, Shariah-compliant financial solutions.
Mudathir Adesanya, MD/CEO of IFING MEDIA Limited. Contact: [email protected]
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