ARAMCO has backed American fintech Wahed as it launches a physical bank in London. However, concerns of a high street bank exodus place question marks over the branch's future success.

Wahed's first UK-based physical bank, which opened its doors yesterday on Baker Street, has scored £61m ($75m) from the Saudi Arabian oil giant together with French football star Paul Pogba.

The halal investing platform, as Wahed describes itself, which allows customers to invest in halal equity funds, Islamic bonds and gold, is targeting the UK's 3.9m Muslims.

While online-only banks like Revolut and Monzo have taken off in the UK, Wahed founder Junaid Wahedna says this model does not appeal to Muslims who want to see a "physical presence" before trusting a bank with their money.

It comes as declining footfall has seen other UK banks leave the high street in droves, with HSBC set to close over 100 branches this year while Halifax and Lloyds are also shrinking their physical presence.

(c) 2023 City A.M., source Newspaper