Build financial literacy
Embed alternative finance literacy into mainstream financial education and guidance.
A fairer financial system for more people.
Equi-commissioned national polling, conducted by Savanta, offers one of the clearest pictures yet of how people in the UK understand and use alternative finance, with a focus on users of both Muslim and other backgrounds.
The findings reveal both the promise and the structural challenges of building a fair, inclusive and resilient financial system.
OpportunityDemand reaches across faith and background.
FrictionUnderstanding and access remain far behind.
ActionPractical policy choices can close the gap.
Demand
Values-based finance is not a niche preference.
Islamic finance was the preferred form of alternative finance for 64% of Muslim respondents. Faith-based principles were the leading motivation for choosing alternative finance.
Among the general population, 40% expressed a preference for non-interest or ethical finance, models that align closely with Islamic principles of fairness, transparency and social responsibility.
64%of Muslim respondents preferred Islamic finance
40%of the general population preferred non-interest or ethical finance
Motivations
Faith leads. Fairness broadens the market.
Among Muslims who had used alternative finance, the leading motivation was compliance with religious principles, followed by cost and customer service.
Only 14% of the general population cited religious principles as a motivation. Yet around 40% expressed a preference for non-interest or ethical finance, models that align closely with Islamic finance. This suggests a broader market exists for values-based finance if the links are made clearer.
Motivations for using alternative finance
Muslim respondentsGeneral population
Values in action
A broader market exists for values-based finance if the links are made clearer.
Understanding
Low understanding is a systemic barrier.
Nearly a third of the general population did not know which form of alternative finance they preferred. Knowledge was slightly higher among Muslims, suggesting Islamic finance may act as an entry point to broader literacy on alternative finance.
But awareness does not necessarily translate into usage.
29%of the general population did not know which form of alternative finance they preferred
40%could not explain any product they had heard of
The usage gap
Awareness does not translate into use.
Among Muslims aware of alternative home finance, 76% had never used it. For alternative pensions, the figure was 67%.
This does not indicate low demand. Rather, it reflects structural barriers that prevent access.
Women in both groups were less likely to have heard of or understood alternative finance products, pointing to a gendered dimension of financial inclusion.
Home finance76%of Muslims aware of alternative home finance had never used it
Pensions67%of Muslims aware of alternative pensions had never used them
Consequences
Exclusion creates a choice no one should face.
The most common consequence for both groups was increased financial stress. Part of the importance of alternative finance, particularly non-interest finance, is that it can help to take financially vulnerable people out of the vicious cycles of debt exacerbated by interest.
But if a significant number of people are ineligible, cannot afford it or do not understand it fully, this opportunity will be missed.
1in4
The cost of exclusion
One in four Muslims who could not access alternative finance resorted to interest-based products.
That creates additional pressure for people seeking to comply with religious principles. No one in the UK should have to choose between their faith and access to finance. This is a matter of financial inclusion and consumer rights.
Policy implications
Turn appetite into access.
To unlock the potential of ethical and faith-aligned finance, policymakers, regulators and providers should:
Strengthen clarity
Strengthen regulatory clarity around Islamic and ethical finance to build consumer confidence.
Expand availability
Expand product availability so that alternative finance is not a niche but a credible, competitive part of the UK’s financial landscape.
Remove barriers
Address structural barriers such as complexity and cost, which disproportionately affect those seeking non-interest products.
Make it a shared opportunity
Promote ethical finance as a shared national opportunity, positioning Islamic finance within a broader values-based ecosystem.
