There is always a question arising as to what is better between Islamic banking and Conventional banking? From a long time this question is going around the head of ordinary people as well as people in the banking industry. In the past few years, Muslim population has increased rapidly leading to increase and expand of Islamic banking. The United States of America welcomes 20,000 Muslims every year which can be a great example.

These new Muslims will surely be in need of Islamic banking services. Islamic religion is growing leading to more Muslims to use and consume Sharia complaint services. This has lead the needs for more and more banks to adopt the Islamic banking facilities and services. If we compare Islamic banking with Conventional banking there are several similarities but there is large amount of differences which determine their client account.

There were many loopholes that were found in the conventional banking system which has been erased by the Islamic banking system. Islamic banking system follows Sharia compliance but mainly it adopts four main principles that are avoiding speculation, investing ethically, avoiding gambling and prohibiting unnecessary increase in bank interest rates. Islamic banking doesn't consider money value but considers it as a mere medium of exchange.

The investors know where their investment is being used in Islamic banking which is its main advantage. This advantage eliminates any possibilities of future risks and uncertainties. The investors know as to how much profit they are going to earn in a long run. This helps the investor to confidently invest without having any speculation. It is also important to know that Islamic banking and financing doesn't allow and entertain any investment in making Haram (unlawful) money by investing in materials such as pork or alcohol. There are lower chances of failures in Islamic banking as they help their investors to invest wisely and make correct choice of investments and decisions.

Halal Economy is considered healthy economy because of Islamic banking and finance. Due to Non- Sharia compliance, Islamic banking is often considered more superior than conventional banking. Contributing to the monetary ecosystem, Muslims worldwide contributes to all religious demographics.

Islamic banking system can be anytime better than conventional banking system. There is a need of adopting Sharia compliant banking as the numbers of Muslims are increasing worldwide. Being a strict, stable and standardized system, Islamic system provides reliable work in all ways. Looking to the Islamic banking, we can look forward to their future holds.