As the Filipino Muslim population reaches approximately 7 million, a recent study by Pru Life UK reveals that two in five seek financial products that adhere to Shari’ah principles, particularly in insurance and investment.
Ethical considerations significantly shape the financial choices of Muslim families, with healthcare (58%), family needs (51%), and education (47%) identified as top priorities. Moreover, concerns regarding healthcare emergencies (56%), financial instability (42%), limited access to insurance, and disasters (41%) are prevalent within the community.
Predominantly located in Mindanao, this demographic is among the most underserved in terms of banking and insurance access. The study concentrates on the financial needs of Muslims in key areas, including the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Zamboanga Peninsula.
The research highlights a tendency among many Filipino Muslims to shun conventional banks due to Islamic prohibitions against interest, leading to a significant amount of savings being kept at home. According to a 2022 S&P Global study, approximately 5% to 6% of the unbanked population in the Philippines is Muslim, equating to around 3 million individuals.
Pru Life UK’s findings align with ongoing government initiatives to enhance the Philippine Islamic finance system, particularly through the Islamic Finance Coordination Forum. In May 2024, the Insurance Commission implemented its first regulations for Takaful Window operations, introducing Shari’ah-compliant insurance alternatives.
“The insights from this study can assist the government and industry stakeholders in understanding the financial requirements of the Muslim Filipino population and in identifying opportunities for collaboration to promote broader financial inclusion,” stated Paul Mandal, SVP and Chief Legal, Government Relations, and Sustainability Officer at Pru Life UK.
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