The Islamic Retail Banking Market - REDmoney Events 2017-03-09¢  Islamic Bank of the Year...

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Transcript of The Islamic Retail Banking Market - REDmoney Events 2017-03-09¢  Islamic Bank of the Year...

  • Jamsheed Hamza Head of Retail Banking

    The Islamic Retail Banking Market

  • What is Retail Banking?

    • Division of a bank that deals directly with retail

    customers.

    • Also known as consumer banking or personal banking

    • The visible face of banking to the general public through

    the bank branches

  • Other business divisions

    • Corporate Banking

    • Investment Banking

    • Treasury

    • Wealth Management/Priority Banking

  • Retail Banking – Conventional vs. Islamic

    • From the concept of retail banking, there is no difference

    • Both cater to retail customers

    • In terms of service & products, there is a huge

    difference

    • One is based on Islamic structures/ contracts while the

    other not

  • Market Share

    [CELLRAN GE]

    [PERCENT AGE]

    [CELLRAN GE]

    [PERCENT AGE]

    TOTAL ASSETS Conventional Islamic

    [CELLRAN GE]

    [PERCENT AGE]

    [CELLRAN GE]

    [PERCENT AGE]

    FINANCE Conventional Islamic

    [CELLRAN GE]

    [PERCENT AGE]

    [CELLRAN GE]

    [PERCENT AGE]

    DEPOSITS Conventional Islamic

  • Total Assets

    24821 28189 27057

    0 5000

    10000 15000 20000 25000 30000

    Dec 2014 Dec 2015 Dec 2016

    1371

    2253

    3080

    0

    1000

    2000

    3000

    4000

    Dec 2014 Dec 2015 Dec 2016

    CONVENTIONAL BANKING

    ISLAMIC BANKING

    37%

    4%

  • Islamic Banks & Windows

  • Drivers of retail banking growth

    Changing consumer

    demographics

    Growing disposable

    incomes

    Younger population

    Increasing literacy levels

    Higher adaptability to technology

    Growing consumerism

    Changing mind sets - willingness to borrow/lend

    Desire to improve lifestyles

  • Industry’s response to the change

    • “Anywhere - Anytime” – Mobile banking

    • Improved processes/bundled product offerings

    • Faster service/reduced TATs

    • Customer specific products/offerings

    • ‘Bank’ customer has replaced ‘Branch’ customer

    • Focus on understanding customer needs/preferences

    • Segmentation/differentiation of customers

    • Customer driven strategies

    • Building relationships

  • Strategic prerequisites….

    Performance oriented leadership

    Sophisticated marketing and sales

    Efficient distribution channels

    Process efficiency and ease of scalability

    Superior credit policy, procedures and skills

  • Challenges

    Sustaining Customer loyalty

    Reducing NPA & Fraud prevention

    Avoiding Debt Trap for customers

    Reaching out across the country

  • Strategies for Future

    • Reaching to masses : Need to customize

    • Customer segmentation/differentiation

    • Data mining/CRM based campaigns

    • Products per customer/loyalty

    • Promoting low risk retail lending products

    • Offer an array of products and financial advisory.

  • Strategies for Future

    • Cost effective expansion

    • Knowledgeable front line ambassadors

    • Superior alliances – Retailers, Auto dealers, travel

    agents, education institutes, housing developments

    • Innovation

  • Banking with Maisarah

    • Established in 2013

    • 10 branches

    • One of the fastest growing Islamic banking entity

    • Innovative products – retail, corporate, trade finance, treasury &

    investment banking

    • Knowledgeable staff members

    • Various awards won

    • Over 150 training/awareness programs per year

  • Branches

    • Muscat – Azaiba, Al Khuwair, Al Hail, Greater Muttrah • Salalah – Al Wadi, New Salalalh • Sohar • Sur • Nizwa • Ibri

  • Products

    Assets

    Home Finance

    Property Finance

    Auto Finance

    Goods Finance

    Travel Finance

    Education Finance

    Credit Card

    Liabilities

    Current Account

    Savings Account

    Fixed Deposit

    Prize Account

  • Specialty of Maisarah

    • Experienced Islamic bankers • Over 40 certified Islamic finance executives • Understand our customer need • Completely segregated head office • Qualified Sharia Board • Ali Al Habsi – brand ambassador • Priority banking • Transformation • Awareness programs

  • Awards

    2013

    Best Islamic Window in Oman 2013 by Global Financial Market Review.

    2014

    Best Islamic Community Support Bank 2014 by Global

    Financial Market Review.

    2015 Islamic Bank of the

    Year – Oman 2015 by The Banker.

    Best Islamic Window – Maisarah, Oman

    2015 by International Finance Magazine

    (IFM).

    Best Islamic Bank Oman 2015 by Global

    Banking & Finance Review.

    2016

    Islamic Bank of the Year – Oman 2016 by

    The Banker.

    2017 Best Islamic Bank in Oman at the EMEA

    Finance’s Achievement Awards

    2016

    Best Islamic Community Support Bank 2017 by Global

    Financial Market Review

  • The Islamic �Retail Banking Market What is Retail Banking? Other business divisions Retail Banking – �Conventional vs. Islamic Market Share Total Assets Islamic Banks & Windows Drivers of retail banking growth Industry’s response to the change Strategic prerequisites…. Challenges Strategies for Future Strategies for Future Slide Number 14 Banking with Maisarah Branches Products Specialty of Maisarah Awards Slide Number 20