AM Best analyses Solidarity Bahrain

AM Best has affirmed the financial strength rating (FSR) of B++ (good) and the long-term issuer credit rating (ICR) of “bbb” for Solidarity Bahrain.The outlook of the FSR is stable, while the outlook of the long-term ICR is positive, the ratings agency said.

The ratings reflect Solidarity Bahrain’s balance sheet strength, which AM Best categorises as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings also factor in rating enhancement, reflecting Solidarity Bahrain’s strategic importance to its ultimate parent company, Solidarity Group Holding, a provider of Islamic insurance solutions in Bahrain and Jordan.

The positive outlook reflects the potential benefits of an enhanced business profile for the Solidarity group following the integration of Al Ahlia Insurance Company (AAIC) into its operations.

AM Best expects Solidarity Bahrain’s operating performance to remain adequate, benefitting from corrective actions taken by management to improve the profitability of AAIC’s legacy operations through strengthened underwriting practices and more stringent risk selection. Furthermore, de-risking of Solidarity Bahrain’s investment portfolio is expected to result in greater earnings stability over the medium term.

Solidarity Bahrain was formed following the merger between AAIC and Solidarity General Takaful  on 3 December 2017, creating a leading insurer in the Bahraini insurance market by gross written contribution. However, Solidarity Bahrain’s business profile remains limited by its concentration in Bahrain’s insurance market, which is relatively small and highly competitive, AM Best said.

Details:

Read AM Best's financial strength rating guide (PDF)

AM Best gives Qatar Islamic Insurance Company B++ financial strength rating

AM Best has affirmed the B++ (good) financial strength rating and bbb+ long-term issuer credit rating for Qatar Islamic Insurance Company (QIIC). The outlook of these ratings is stable.

The ratings reflect QIIC’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

QIIC adopts a hybrid takaful model, whereby the shareholders’ fund (SHF) charges the policyholders’ fund (PHF) a wakalah fee based on gross written contributions (GWC) and a mudarabah fee based on investment income. QIIC’s ability to accumulate surpluses within the PHF whilst regularly distributing surplus back to policyholders supports the sustainability of the takaful model.

QIIC has a track record of strong operating and technical profitability, highlighted by a five-year average (2013 - 2017) combined ratio of 79% that has remained very stable over recent years. While there has generally been a good balance of earnings between technical and investment income, a volatile investment environment in Qatar has meant investment returns have declined over the past four years. During 2017, the company reported net profit of QAR62 million, equivalent to a sound return on equity of 13%.

Although the company is concentrated on its domestic market of Qatar, the company maintains a niche market position as an established provider of shari’ah-compliant products and a strong reputation that is partially attributable to the company’s track record of distributing surpluses back to its policyholders. The company also benefits from being a member of the National Insurance Consortium, which provides QIIC access to sizable government infrastructure contracts. QIIC reported modest premium growth in 2017, as the company reported a 1% increase in GWC to QAR317 million, compared with 2016.

AmBank Islamic-IIUM credit card facilitates contributions to IIUM Endowment Fund

Professor Dato’ Sri Dr Zaleha Kamaruddin, Rector, IIUM (right), Dato’ Sulaiman Mohd Tahir, Group CEO, AmBank Group (centre) and Eqhwan Mokhzanee, CEO, AmBank Islamic (left) at the launch. 

AmBank Islamic and the International Islamic University of Malaysia (IIUM) have launched the AmBank Islamic-IIUM credit card. 

Under this programme, AmBank Islamic cardholders can convert their AmBonus Points into cash contribution towards the IIUM Endowment Fund (IEF) from a minimum of 3,000 AmBonus Points. The IEF financially supports IIUM students who are academically excellent but having financial difficulties.

AmBank Islamic and IIUM also teamed up with JomPAY to provide added convenience, accessibility and flexibility to the public and corporate sector contribute to the IEF. IIUM’s participation in JomPAY is powered by AmBank Group’s Transaction Banking, which provides a one-stop wholesale banking solution in cash management, trade finance and remittances. JomPAY electronic payment enables payments via Internet banking, mobile banking and the ATMs of banks in Malaysia. 

“The AmBank Islamic-IIUM credit card is our first credit card launched in collaboration with a higher learning institution in Malaysia. With this collaboration, we are hoping to support the growth in the educational sector, in line with our value-based intermediation aspirations,” said Eqhwan Mokhzanee, CEO, AmBank Islamic.

“With this collaboration with IIUM and JomPAY, we are pleased to embark on another initiative to offer more products to our customers whilst concurrently help to raise funds for the IEF, which will be used to assist needy IIUM students in their studies,” said Dato’ Sulaiman Mohd Tahir, Group CEO, AmBank Group.

In 2016, IEF has disbursed RM10.5 million in the form of scholarships and financial assistance to 4,323 recipients. Some programmes were initiated since its establishment in 1999 including receiving donations and zakat payment from individuals and organisations, both locally and from abroad.

DED and Dubai Islamic Bank launch shari'ah-compliant credit card

Source: DED.

 

The Department of Economic Development (DED) in Dubai and Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, have launched of the Consumer Card in the UAE. DIB boasts today one of the largest retail bases in the UAE with over 1.5 million customers and 90 branches across the country.

The co-branded credit card is dedicated to protecting the rights of consumers and providing them with savings on their daily purchases. The card is an addition to the partnership initiatives being launched by DED along with the private sector and to the ongoing efforts to enhance the shopping experience in Dubai, and across the UAE.

Developed and designed in line with the spending habits and distinct needs of consumers in the UAE, the shari'ah-compliant card is issued in partnership with Visa and carries no hidden charges. It has two variants, the Rewards Consumer Card and the Platinum Consumer Card.

While enabling customers to make savings on everyday spends, the Consumer Card also carries a host of discounts at over 450 outlets across the country. It offers up to 4% cashback across a number of outlets including supermarket or hypermarket, for all automobile servicing, on Etisalat and Du bills, Salik and Nol recharges, fuel purchases, utility bills and cinema tickets. Card users will be able to receive up to AED1,000 cashback per month on their spends across the UAE.

The card was launched today at the Mall of the Emirates in the presence of His Excellency Sami Al Qamzi, Director General of DED, Dr. Adnan Chilwan, Group Chief Executive Officer at Dubai Islamic Bank, and in addition to senior managers from the organisations.

Mohammed Ali Rashed Lootah, Executive Director of the Commercial Compliance & Consumer Protection (CCCP) sector in DED, said the card highlights the effectiveness of public-private partnerships in bringing added value to businesses and consumers. "The Consumer Card is part of the initiatives of the Department of Economic Development to promote trust and partnership between retailers and consumers. Dubai is a global shopping and entertainment destination and we focus on making the shopping experience in the emirate as convenient and rewarding as possible," he said.

Sanjay Malhotra, Chief of Consumer Banking, at DIB said: "Domestic spending remains today the backbone of the UAE economy and we are keen to invest our expertise and resources in developing payment solutions that are favourable to spurring further growth. As one of the most innovative banks in the market today, we are pleased to offer our client base attractive payment solutions and savings on their daily purchases. Moving forward, we will continue to leverage our partnerships to present a unique banking experience while adhering to the highest standards of service excellence.
"While the market already offers benefits on credit cards, we have focused on areas where customers spend their money regularly thus maximising their gain. With this in mind, we have developed the Consumer Card as a low-cost, high-value proposition in order to appeal to a larger number of customers and allow them to enjoy unique benefits."

Ihab Ayoub, General Manager MENA at Visa, said: "The Consumer Card – a major step in this direction – will help in spreading further awareness about the benefits of electronic payments and the related cardholder rewards through a wide network of customers. Providing consumers with a safe and convenient way to pay is one of Visa's main priorities, and our participation in this initiative is aligned with our ongoing efforts to promote financial literacy on the ways to save, spend and budget responsibly.

"We are confident that through a partnership of public and private sectors, the "Consumer Card" initiative will support the UAE's efforts to be a leader in developing innovative payment technologies, and drive its transformation into a cashless society."

Ahmed Al Zaabi, Senior Manager - Consumer Awareness, at DED said: "The Commercial Compliance & Consumer Protection sector constantly seeks to strengthen the relationship between the merchant and the consumer, and improve awareness among consumers on their rights and responsibilities. We also focus on regulating the market and launch programmes that protect businesses. The Consumer Card is part of our efforts to raise the quality of services provided to customers and enhance their satisfaction and happiness. Our partnership with Dubai Islamic Bank and the advantages it brings to consumers and traders will strengthen economic activity in the UAE."

Interested?

Ask the DIB Call Centre about the Consumer Card at +971 4609 2222.

ICIEC to hold strategy meet in Jakarta, Indonesia this May

The Board of Governors of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) will hold its 23rd annual meeting in Jakarta, Indonesia on May 18, 2016 in conjunction with the 41st annual meeting of the Islamic Development Bank (IDB). The ICIEC Chief Executive Officer HE Oussama Kaissi will lead the delegation.

The meeting is an occasion for the governors of IDB Group members, most of whom are the finance ministers of ICIEC-member countries, to provide guidance on IDB Group’s operational, financial, as well as strategic directions.

In the same meeting, the Board of Governors is expected to approve the financial results of the Corporation for 1436 (2015), and sanction the selection of the external auditors for the financial year 1438 to 1439 (2017).

ICD explores line of credit with EXIM Bank, India for importing Indian goods into member countries

Source: ICD. The MoU was signed by Khaled Al Aboodi, the Chief Executive
Officer and General Manager of ICD (left), and Tarun Sharma, Regional
Head of EXIM Bank. 

A memorandum of understanding (MoU) has been signed between the Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank (IDB) Group and Export-Import Bank of India (EXIM Bank). EXIM Bank is a specialised financial institution, established under an Act of the Indian Parliament, wholly owned by the Government of India with a mandate to finance, facilitate and promote India’s foreign trade.

The MoU envisages cooperation to explore the feasibility of extending a commercial line of credit of US$100 million to ICD with the aim of facilitating the export of goods and services from India to ICD’s member countries. Typically, the recipients of EXIM Bank’s commercial lines of credit act as intermediaries and on lend to overseas buyers for the import of Indian goods and services. Under the agreement, cooperation will also be achieved through the exchange of information on trade-related matters and the identification of business opportunities for Indian companies to pursue in ICD’s member countries.

Khaled Al-Aboodi, CEO and GM, ICD commented: “We acknowledge that India, being the seventh largest economy in the world, has a lot to offer and its high-quality exports of goods and services can drive the next wave of growth. I believe ICD’s member countries can offer vibrant business prospects for India’s exporters.”

Tarun Sharma, Regional Head, EXIM Bank said, “Since its inception, EXIM Bank has been both a catalyst and a key player in the promotion of cross-border trade and investment. We remain committed to support Indian exporters to enter new markets in their bid to expand and we are convinced that our co-operation with ICD will serve that very purpose and will be mutually beneficial for both parties.”

Qatar Islamic Bank (QIB) receives Visa award for QIB-Qatar Airways Visa Signature credit card

Source: QIB.

Qatar Islamic Bank (QIB) has received the Best New Product in Qatar award for 2015 from Visa International for its QIB-Qatar Airways Visa Signature Co-Branded credit card.

The prestigious award was conferred after considering the unanimous and encouraging response from the customers compared to product offerings of all Qatari banks and taking into account the products’ innovativeness, benefits, and added value to customers.

Launched last May, the QIB-Qatar Airways Signature credit card is designed with premium customers in mind. It offers elite benefits such as global concierge services, global airport lounge access, discounts, automatic purchase protection, warranty extensions, exclusive offers on luxurious hotels, full multi-trip travel insurance and much more.

“The award is testament to QIB’s efforts to provide the best products to its customers,” said D Anand, General Manager of the Personal Banking Group at QIB. “The QIB-Qatar Airways Signature co-branded credit card was developed in response to the needs of our high net-worth customers, many of whom are frequent travellers. The card offers a range of benefits tailored to the lifestyles of these customers, who in many cases have made it their preferred card. We thank our customers for the support they have shown through their frequent usage of the card, which has resulted in recognition from Visa.”

“This super-premium product offers cardholders opportunities to earn miles that could be redeemed for a host of exciting services with Qatar Airways and its OneWorld airline partners around the world,” said Ihab Ayoub, Visa's General Manager for the Middle East and North Africa region of the QIB-Qatar Airways Visa Signature credit card. “Visa’s partnership with QIB is a demonstration of our commitment to Qatar, by offering customers a rewarding payment experience that is innovative, convenient, and secure.”

Interested?

Read the Suroor Asia blog post about the QIB-Qatar Airways Visa Signature credit card

Malaysia launches shari'ah-compliant crowdsourced investment platform, with ratings from RAM Holdings

Six Islamic banking institutions have launched the first bank-intermediated financial technology (fintech) platform in Malaysia. The Investment Account Platform (IAP) a strategic initiative of the Islamic finance industry to operationalise investment accounts, a new product offering by Islamic banking institutions. 

The platform has been developed by a wholly-owned subsidiary of Raeed Holdings, a consortium of six Islamic banking institutions: Affin Islamic, Bank Islam, Bank Muamalat, Maybank Islamic, Bank Rakyat and Bank Simpanan Nasional. In his speech, Datuk Zamani Abdul Ghani, Chairman of Raeed described the launch as an important milestone within the industry as it aims to broaden the traditional role of Islamic banking institutions, from traditional credit provider to include investment intermediary.

Similar to many fintech platforms such as crowdfunding and peer-to-peer lending platforms, IAP facilitates direct investment by investors into viable ventures of their choice. However, a key differentiating factor of IAP would be the roles undertaken by Islamic banking institutions. According to Mohamed Izam Mohamed Yusof, Chief Executive Officer of Raeed, what IAP brings to the table is the ‘trust’ factor provided by Islamic banking institutions’ experience and expertise, which is valuable in boosting investors’ confidence and enhancing financing opportunities for entrepreneurs. 

"I would say, the main challenge in developing IAP lies in streamlining various considerations including IT, banking operations, shari'ah, legal, products, recovery, risk management and compliance across the four founding banks, while ensuring that the business propositions of IAP remain competitive," he said.

"IAP is a centralised multi-bank platform that enables investors to directly finance ventures of their choice according to their risk-return preferences. The platform intends to enable different spectrums of businesses, including SMEs, corporates, new growth industries as well as entrepreneurs with good and viable projects, to gain access to financing in support of real economic growth. A unique feature of IAP lies in the intermediary roles undertaken by Islamic banking institutions, which put forth the element of trust and credibility that are valuable in boosting investors’ confidence and enhancing financing opportunities for entrepreneurs. This ultimately increases the likelihood of concluding tangible deals via IAP."

IAP was launched by Tan Sri Dr Zeti Akhtar Aziz, Governor of Bank Negara Malaysia. "Its robust risk management infrastructure, with a high degree of transparency and disclosure differentiates the IAP from other technology-based fund-raising platforms. Islamic banks in performing their intermediation role in the operationalisation of the investment accounts that are being offered on this platform, would rigorously undertake the credit assessment and screening of the listed ventures. The IAP would also require ratings on the listed ventures by rating agencies reinforced by the requirement for such ventures to comply to the disclosure standards thus enabling investors to make informed decisions. Integral to the platform is a mechanism for regular monitoring of the progress of the ventures, thus allowing for assessments to be undertaken by the sponsoring banks of any emerging risks associated with the ventures," she said. 

"The value proposition and benefits of the IAP are multi-fold. It has the potential to spur the generation of new economic strengths through the promotion of entrepreneurship and job creation while also promoting greater financial inclusion and thus enhanced prospects for balanced growth. The IAP enables investors to directly finance a broad range of economic activity of their choice, therefore diversifying their investment portfolio with exposures to various types of projects and industries that yield potential returns that are based on the performance of the underlying chosen ventures. For businesses, the IAP provides a new source of funding for activities, with more competitive financing terms in a range of financing structures. Ventures and entities of varying types, size and industries, including SMEs, listed firms and multinational companies can raise funds on this platform. Given its greater visibility, the IAP will also provide access to a broader range of individuals and institutional investors.

"For Islamic banks, the IAP creates a differentiated product that presents a new source of income and funding profile. There is also the potential for institutions with specific mandates including government agencies to strategically collaborate with the IAP and Islamic banks to form public-private partnerships to facilitate the efficient channelling of grants or funding and to facilitate financing opportunities for identified strategic ventures."

Strengthening financial inclusion and internationalisation

IAP will also be positioned as a new medium to facilitate more public-private partnerships in financing strategic ventures within specific industries. Through collaborations with IAP, government agencies can efficiently identify viable ventures to channel their grants into, and create opportunities for the private sector to partially fund these ventures. This can increase the number of beneficiaries for these grants therefore optimising the government’s revenue in spurring productive economic growth

More Islamic banking institutions are expected to join the platform moving forward. In addition to cost-efficiency factors and enhanced ability to achieve critical mass amongst clients, the competitive edge of IAP for Islamic banking institutions lies in internationalisation. IAP has the potential to be expanded as an avenue to channel local and foreign shari'ah-compliant investments in financing projects denominated in various currencies, as well as to be intermediated by Islamic banking institutions from different countries.

RAM Holdings separately announced that it has entered into an agreement with IAP Integrated to provide independent credit ratings on ventures listed on the IAP. RAM will conduct credit assessment and assign a credit rating to each venture prior to its listing on the IAP. The credit ratings from RAM provide potential IA investors with an independent, third-party opinion on the credit risk of the underlying venture. 

“RAM’s role in IAP is to provide an independent view on the creditworthiness or likelihood of the venture in meeting full and timely payment of expected profit and repayment of principal. This would require us to take into account factors beyond the track record of the entrepreneurs concerned, including industry risks and the viability of the proposal itself,” said Datuk Seri Dr K. Govindan, Group Chief Executive Officer of RAM Holdings. “We will leverage on RAM’s extensive experience in rating bonds and sukuk to deliver our credit opinions on the ventures.”

“Given RAM’s over 25 years of track record in credit ratings across various industries and geographies, it is well-positioned to conduct independent assessment on ventures listed on the IAP,” said Mohamed Izam. "RAM’s rating methodology is also familiar to most investors, which is a plus point in supplementing their investment decision making process.” 

In her launch speech Tan Sri Dr Zeti noted that Islamic finance in Malaysia has evolved into a complete Islamic financial ecosystem that operates alongside the conventional financial system. "The industry has now not only achieved a market share beyond the target of 20% by the year 2010 as was envisioned in the Financial Sector Masterplan, but it has also met the increasing and differentiated demands of the economy through the range of financial product offerings in Islamic banking, takaful and Islamic capital market segments," she said. 

Dr Zeti said the new landscape is enabled by the Islamic Financial Services Act 2013 (IFSA) takes into account the specificities of Islamic finance while ensuring a robust governance of an end-to-end shari'ah-compliant regulatory framework, and enables Islamic banks to diversify through offering investment accounts as an alternative means of raising funds from the public. "This new categorisation of deposits under the new Act has now been fully observed since mid-2015 with the effective reclassification of deposits to either being Islamic deposits or investment accounts. Following this exercise, the proportion of investment accounts to total funding for Islamic banks has increased from 7% in August to 10% as at December 2015, indicating a positive response towards this new product offering," she said. 

ADIB Spice Card rounds out product offerings to NRIs, NRPs

Source: ADIB. The new Spice Card offers a range of cashbacks if the owner hits a minimum spend.

Abu Dhabi Islamic Bank (ADIB) has launched the Spice Card to complement its tailored product offerings to non resident Indians (NRIs) and non resident Pakistanis (NRPs) in the UAE.

The ADIB Spice Card offers NRI and NRP customers a chance to save more money with a range of competitive offers and discounts. This includes 9% cashback on all dining spends, 7% cashback on all supermarket spends, 4% cashback on fuel and 1% cashback on utility bills. The cashbacks apply on local as well as international spend, and customers also earn up to two reward points for every AED1 spent on other merchant categories.

Venkatesh Srikantan, Head of Retail - Expat Banking at ADIB, said, "While there are banking products in the UAE for Indians and Pakistanis to use in their home countries, there is a lack of products specifically tailored for them in the UAE. Our research shows that the spending habits and financial requirements of NRIs and NRPs centre on some common characteristics. As a customer-centric bank, it is of utmost importance for us to design value added products that suit their financial needs."

The Spice Card adds to ADIB's product offering for NRIs and NRPs. Last year, ADIB launched finance solutions for NRIs to buy properties in India and NRPs to purchase properties in Pakistan.

The Indian community in the UAE totals some 2.6 million people and constitutes 30% of the total population, making it the largest expatriate community in the country. Pakistanis form the second largest ethnic group in the UAE, with a population of over 1.2 million, constituting 12.5% of the country's total population.

A minimum monthly spend of AED3,000 is required on the Spice Card to qualify for the cashback offers with a maximum cashback cap of AED50 on utility payments, AED200 on restaurant bills, AED50 on fuel and AED100 on supermarket spending. ​ ​​​​

Bank Nizwa launches shari'ah compliant MasterCard family

Source: Bank Nizwa.

Bank Nizwa has launched a suite of shari'ah-compliant credit cards in partnership with MasterCard. The Bank Nizwa MasterCard credit cards offer financial flexibility in more than 35 million locations worldwide.

"Since inception, we have been providing customers throughout Oman with an enriched banking experience that caters to a wide range of segments, equipping them with the best options to meet their evolving needs," said Dr Jamil El Jaroudi, CEO of Bank Nizwa. "Today we are introducing four new cards to the Bank's long list of shari'ah-compliant products and services that offer the most flexible payment plans complemented by MasterCard's unmatched benefits, bringing seamless and more convenient ways to transact around the world."

Raghav Prasad, General Manager for Gulf Countries, MasterCard commented: "Through strategic partnerships, we are able to provide cardholders with value-added benefits, premium privileges and rewards. By collaborating with Bank Nizwa, we are actively rewarding MasterCard cardholders for using their cards to enjoy simple, safe and secure transactions."

Bank Nizwa's MasterCard rollout introduces the Basic, Standard, Gold, and Platinum cards. The cards were developed in line with the Islamic finance concept of qard al hassan, whereby customers will be charged a fixed monthly subscription fee rather than a percentage against their outstanding balances.

Etihad Airways and Abu Dhabi Islamic Bank hold recruitment promotion for ADIB Etihad Guest Visa

Source: Etihad Airways website.

Etihad Guest, Etihad Airways’ loyalty programme, and Abu Dhabi Islamic Bank (ADIB), a UAE-based financial institution, have announced an offer for new applicants for the ADIB Etihad Guest Visa covered card.

Successful applicants can earn up to 100,000 Etihad Guest Miles* upon registration for the card in addition to enjoying benefits such as fast-tracking to Etihad Guest Gold Tier membership, and the highest mile per dirham earning rate on international card purchases. With 100,000 miles a cardholder can book a one way flight* to London in First Class, a one-way flight to Brisbane in Business Class or a return flight to New York in Economy Class, on Etihad Airways.**

Yasser Al Yousuf, Managing Director of Etihad Guest, said: “We are committed to continually providing our valued Etihad Guest members with the most innovative and rewarding products and services in the market. We have a successful partnership with ADIB, and our latest offer in partnership with ADIB’s award-winning ADIB Etihad Guest Visa covered card is the best card acquisition offer in the region.”

Philip King, Head of Retail Banking UAE, Abu Dhabi Islamic Bank, said: “Our successful partnership with Etihad Guest continues to bring outstanding value to our customers in the UAE. We are pleased to bring yet another offer to our customers and we are confident this will contribute in further cementing our position as a leading provider of value-added retail banking products and services.”

Interested?

Apply for the card. Applicants can call 800 2882 or SMS ‘FLY’ to telephone number 2400 to sign up for an ADIB Etihad Guest Visa Card. The special offer is valid for successful applications approved by 15 December 2015. 

Applicants can also visit the ADIB Etihad Guest travel card Member Centre located at Abu Dhabi Airport Terminal 3. The facility is designed to meet the needs of existing cardholders to answer questions about the travel benefits of ADIB Etihad Guest cards as well as take new applications. The member centre will remain open until 15 January, 2016.

*Cardholders will receive an additional 50,000 Etihad Guest Miles on top of the 50,000 Etihad Guest Mile welcome bonus for the ADIB Etihad Guest Visa Platinum card upon meeting the minimum spend criteria within 45 days of card issuance.

**Actual miles required for GuestSeats vary per destination and travel class and are subject to availability. Carrier and airport surcharges apply.

KFH Bahrain launches shari'ah compliant Visa Signature card

Source: KFH Bahrain website.

Kuwait Finance House - Bahrain has launched Visa Signature, a shari’ah-compliant credit card which was conceptualised after research to identify the financial needs and lifestyles of KFH-Bahrain clients. The launch of the Visa Signature card is part of the bank’s strategy of offering personalised customer services and financial tools, and charges no interest.

Khalid Rafea, Executive Manager and Head of Banking Group at KFH-Bahrain said, “The launch of the Visa Signature Islamic credit card is another step in providing our clients with the best financial solutions that reward their lifestyles. Holders of this card will gain attractive benefits such as free global airport lounge access to over 500 lounges, on-demand signature concierge service to meet their personal needs, access to Visa’s luxury hotels collection, personal accident travel insurance, extended warranty and purchase protection.”

Majeed Hujair, Visa Country Manager for Bahrain and Oman, said: “KFH-Bahrain is one of the fastest growing Islamic banks in the region, and we are pleased to partner with them to add one of our most popular products to their portfolio in Bahrain. At Visa, we are invested in offering the best range of exclusive privileges and value-added benefits to cardholders through our partner network. The KFH-Bahrain Visa Signature card provides a suite of fascinating add-ons that cardholders can enjoy, together with the peace of mind and convenience of transacting with Visa.”

Islamic banking a winner for EXIM Bank Malaysia

Export-Import Bank of Malaysia (EXIM Bank) has revealed that its Islamic business contributed strongly to its year of record performance, with a net profit of RM144.7 million for the year ended 31 December 2013, a 16.9% improvement from RM123.8 million previously. 

Islamic banking proved a winner for the Bank in FY2013 as the share of Islamic banking assets at RM1.5 billion recorded a 189% increase from the previous year's RM524 million.

The bank also successfully established a US$1 billion multicurrency sukuk issuance programme in support of the anticipated growth of Islamic businesses. The inaugural sukuk marks the world’s first export-import bank to undertake such exercise.

“We are pleased that our inaugural USD sukuk issuance in Malaysia, which also represents the world's first EXIM Bank to issue USD sukuk, received an overwhelming response from investors globally. The sukuk was oversubscribed by approximately 10 times attracting more than US$3 billion orders and was fully distributed to over 185 Islamic and conventional investors,” said Dato’ Adissadikin Ali, President/Chief Executive Officer of EXIM Bank Malaysia. 

“The Sukuk also represents EXIM’s commitment to support the government’s ongoing initiatives and efforts to position Malaysia as an international Islamic finance marketplace.” 

The Bank continued to grow its Islamic businesses which include banking facilities and credit insurance. In driving this growth, the Bank has been successful at mapping all its conventional banking facilities to shari'ah-compliant products. These developments led to an increased share of total Islamic financing of up to 25.9%, from 14.6% recorded in 2012.

BIBD At-Tamwil turns to FICO technology to manage loan portfolio risk

FICO, a predictive analytics and decision management software company, has announced that BIBD At-Tamwil, a subsidiary of Bank Islam Brunei Darussalam (BIBD), the largest Islamic bank in Brunei, has seen increases of 20% percent or more in auto loan bookings since it implemented a mobile decision management application developed using FICO technology.
FICO predictive analytics and the FICO Blaze Advisor decision rules system have enabled BIBD At-Tamwil to manage its loan portfolio risk, satisfy regulatory requirements and take full advantage of information from a newly formed credit bureau, which became available in late 2012. 

Source: FICO

The company’s ability to provide on-the-spot decisions for loans has been the driving factor in boosting business. Its marketing agents at car dealers now use iPads to process credit applications at the car lot, entering the customer’s financial information into the mobile app, along with photographs of important documents such as identity cards and payslips. 

This information, along with credit bureau data, is then analysed using predictive analytics and business rules within FICO Blaze Advisor decision rules system to provide a loan approval decision. This customer-centric approach has streamlined the experience, increasing buyer satisfaction and therefore sales.

“We felt customers were waiting too long for loan approvals using our old system,” said Irwan Lamit, MD of BIBD At-Tamwil, which helps more than 14,000 Brunei consumers every year to finance new and used cars or motorbikes. “With this new approach, we’ve cut the process from a potential 24 hours down to mere minutes while still effectively managing risks. This is a win-win solution that has grown our client base and sales.”

BIBD At-Tamwil made this technology investment as part of its strategy to double its revenue every five years in a highly competitive and saturated marketplace.

“Finding growth meant targeting new customers while managing our risk,” said Irwan. “We decided to include non-salary assigned customers, people whose principal bank account is not with our parent bank. To do this, while increasing loan turnaround time, meant quality risk management was an essential ingredient to the solution.

Dinesh Pereira, who manages FICO’s business in Brunei, added that the innovative solution developed for BIBD At-Tamwil is a great example of the use of customer-focused technology in the financial services industry to drive profits.

“BIBD At-Tamwil is using technology to make life easier for clients looking to buy automobiles. Their work demonstrates what is possible when the power of analytics and mobile are brought together to improve the customer experience.”