This study investigates whether Islamic banks in the UK fulfil their broader function of promoting social justice and equality, a notion that scholars and Muslims believe they should be prioritised over profit-making.
Adopting a sociocultural lens, we employ Bourdieu’s concepts of social class and symbolic capital to examine the social dynamics of Muslims, their interactions with Islamic banks, and the extent to which these institutions promote social equality (or perpetuate social inequality) through their products and services. We conducted twenty-eight semi-structured interviews with UK Muslim participants to examine how Islamic banks in the UK reinforce social class divides within the Muslim community through their operations and products.
The analysis highlights concerns about social stratification. While participants expected Islamic banks to offer affordable products that promote fairness and equality, this study suggests that, despite focussing on providing interest-free products, Islamic banks fail to fulfil their broader goal of promoting social equality through their products and services. Instead, these institutions primarily cater to individuals with higher symbolic capital, thereby perpetuating the social class divide.
We recommend practical actions to help mitigate the social and symbolic capital inequalities perpetuated by the current operations of Islamic banks. These actions include ensuring that Islamic banking products and services are accessible to a broader range of Muslims and non-Muslims, regardless of their social and symbolic capital, as well as providing enhanced education and support to improve financial literacy and promote the benefits of Islamic finance.
This study contributes new insights by applying Bourdieu’s theory of symbolic capital to the context of Islamic banking in the UK. It offers a unique and critical perspective on how Islamic banks influence social dynamics and contribute to inequalities within the Muslim community in the UK.
