Many keen observers of Islamic banking & finance are not satisfied with the current “banking” based model of Islamic financial intermediation and hence suggest that a new Islamic model must be developed for the savers and users of the surplus funds in society. One such model could be called Islamic Foundations.
An Islamic foundation is a collective saving and investment programme that allows its members to save together in order to do business together. This could be a deposit taking institution in itself or may have a deposit taking institution as part of its overall operations………………………………………..Full Article: Source