Financial systems are powerful shapers of culture. They drive the pace and nature of innovation, and are often a clue to what we worship. They are never neutral, and are accurate indicators of our loves, priorities, and fears. This brings up the question: Why do Christians tend to participate in conventional financial models that involve interest and risk transfer, often without much examination and discussion? What would it look like if the Christian community’s capital worked differently? What if lenders shared risk with borrowers and profit was tied to genuine value creation rather than passive gain? What would it look like if capital was intentionally used to build people and communities, not just portfolios?
Praxis defines the redemptive way as creative restoration through sacrifice, to bless others, renew culture, and give of ourselves. It’s an “I sacrifice, we win” approach. They explain that Christians are called to “leverage certain trends, while actively resisting others that are out of line with their convictions about human flourishing.”
This perspective invites us to imagine what a truly redemptive financial system might look like—and to consider how such a system could bring glory to God.
Interestingly, both faith-based and the wider marketplace already have examples of financial models that embed certain values in how they operate. These models are not perfect, but they are purposeful—and they inspire new ways of thinking. Let’s explore three such models.
In the secular marketplace, equity finance raises money by selling a share of ownership in your company. Investors buy these shares, becoming co-owners, and their return depends on the success of the business. Unlike a loan, there’s no monthly repayment or interest. If the company thrives, investors share in the profit. If it struggles, they share in the loss.
This model can be particularly helpful for businesses that can’t get a traditional loan or need large sums to scale quickly. Investors often bring more than money, they offer experience, networks, and follow-on funding. But there’s a trade-off… you give up part of your ownership, and sometimes, part of your decision-making power.
At its heart, equity finance is built on aligned incentives. The investor’s gain is tied to the entrepreneur’s success. Risk is shared, not shifted. Due diligence focuses on relationship building.
Islamic (Shari’ah-compliant) banking operates on the principle that profit should only come with effort, risk, or ownership, not from charging interest on money alone (riba).
Under this system:
In Kenya, Islamic banking has moved far beyond being a niche product for the Muslim community. Since 2005, when Barclays Bank (now ABSA) launched the first La Riba account, the industry has grown steadily. Today, Kenya has three fully fledged Islamic banks and several conventional banks offering “Islamic windows” alongside their traditional services.
What’s striking is that Islamic banking is now actively serving customers of all faiths, including many entrepreneurs and startups who are drawn to its transparent, asset-based approach. By sharing risk and tying finance to real projects, it has helped fund ventures that would otherwise have been locked out of conventional lending.
During COVID-19, this model proved resilient, and clients weren’t crushed by interest on assets that had stopped producing income, because repayment terms were tied to productive use, not an arbitrary schedule.
In Jewish law, the ban on charging interest to “your brother” is clear, repeated in Exodus, Leviticus, and Deuteronomy. The Mishnah calls it breaking six commandments. Rambam likens interest to a snakebite, small at first, but painful and consuming.
Jewish halachic finance (sometimes called “kosher finance”) prohibits the charging of interest on loans between Jews (ribbit). This prohibition, drawn from multiple biblical texts, is rooted in the conviction that lending should be an act of kindness, not exploitation.
To navigate this, Jewish finance uses a mechanism called the Heter Iska, which transforms a loan into an investment. Instead of a lender earning guaranteed interest, both parties share in the risk and potential profit, much like a business partnership. This allows for mortgages, business financing, and other arrangements to be structured in compliance with Jewish law while still enabling commerce.
Other key halachic values include:
While some communities also operate gemachs (free loan societies offering interest-free loans), the halachic framework extends beyond avoiding interest, it aims to integrate ethics, fairness, and community responsibility into all aspects of finance. It shapes not only what is funded, but how and why.
The abovementioned three models reject the idea that lenders should profit regardless of the borrower’s outcome.
| Feature | Equity Finance | Islamic Banking | Jewish Halachic Finance | Redemptive Finance Model |
| Core Principle | Sell ownership shares to raise funds | No interest (riba), profit tied to effort/asset | No interest (ribbit), structure as investment via Heter Iska | Your turn: Imagine the redemptive option |
| Profit Mechanism | Investor gains if business succeeds | Markup on assets (Murabaha), profit-sharing contracts | Profit/loss sharing through investment structures | Your turn: Imagine the redemptive option |
| Risk Sharing | Yes – investors share in profits and losses | Yes – tied to project performance | Yes – lender and borrower share in risk and reward | Your turn: Imagine the redemptive option |
| Ethical Restrictions | None (beyond legal compliance) | No harmful industries (alcohol, gambling, etc.) | Avoid harmful/unethical investments (Tikkun Olam, Lifnei Iver) | Your turn: Imagine the redemptive option |
| Oversight | Investor due diligence | Shari’ah Board oversight | Rabbinical/legal oversight to ensure Halachic compliance | Your turn: Imagine the redemptive option |
| Treatment in Downturns | Investor’s return falls if business underperforms | Payments linked to productive use; relief possible | Risk is shared; no guaranteed return to investor | Your turn: Imagine the redemptive option |
| Typical Beneficiaries | Startups, growth businesses | Businesses, property owners, individuals | Individuals and businesses within the Jewish community | Your turn: Imagine the redemptive option |
| Motivation / Values | Aligned incentives between investor and entrepreneur | Justice, fairness, ethical trade | Kindness, fairness, community responsibility | Your turn: Imagine the redemptive option |
If our capital is to serve God’s purposes, then we must aim to move beyond copying what already exists and ask, “What does redemptive capital look like in my context, with my resources, my relationships, my constraints?”
Maybe we wouldn’t replicate Islamic banking or Jewish halachic finance exactly. But could their intentionality provoke our own? Could Redemptive finance be imagined, created and curated by Christians and become known not for maximising return at all costs, but for structuring capital in ways that bless others, renew trust, restore dignity and build relationships?
