Filipino Muslims seek more Shari’ah-compliant options

Ethical values heavily influence decisions, with healthcare as top priority.

With an estimated Muslim population of 7 million in the Philippines, two in five Filipino Muslims demand more financial products that align with Shari’ah principles, including insurance and investment options, according to Pru Life UK.

Ethical values heavily influence the financial decisions of Muslim Filipino families, with healthcare (58%), family needs (51%), and education (47%) ranked as top priorities. Concerns over healthcare emergencies (56%), financial instability (42%), lack of access to insurance, and disasters (41%) are also significant worries for many in the community.

Predominantly in Mindanao, the Southern part of the islands, this demographic remains one of the most underserved in terms of access to banking and insurance. 

The study focuses on understanding the financial needs of Muslims in key regions like the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) and the Zamboanga Peninsula.

The research highlights that many Filipino Muslims avoid conventional banks due to Islamic principles prohibiting interest, with most savings kept at home. 

According to a 2022 study by S&P Global, around 5% to 6% of the unbanked Filipino population is Muslim, translating to about 3 million individuals. 

Pru Life UK's research supports ongoing government efforts to develop the Philippine Islamic finance system, notably through the Islamic Finance Coordination Forum. 

In May 2024, the Insurance Commission introduced the first regulation for Takaful Window operations, providing Shari’ah-compliant insurance alternatives.

“The findings in the study can help the government and the industry better understand the financial needs of the Muslim Filipino population and identify areas for collaboration to drive wider financial inclusion,” Pru Life UK SVP & chief Legal, Government Relations, and Sustainability officer Paul Mandal said.