Could you provide a brief journey of how you arrived where you are today?
One fine afternoon I was sitting in my office at CitiBank NA and a friend walked into my office and said “Waheed, you have now become the regional manager but in an interest-based bank. Just think about the hell-fire for dealing in interest. Why don’t you go to an Islamic bank and work for them?” He then offered me a book on Islamic banking which was very basic. This was an eye opener for me and brought about a huge internal revolution. That evening I decided to study Islamic banking further and for this purpose I approached the Islamic Institute of Banking in London and enrolled for the diploma course. After serving CitiBank for almost 20 years I finally resigned and moved from the Middle East to London, which is where my Islamic banking career started in a real sense.
I joined the Islamic investment banking unit of UBK to look after the UK side of the business and then replaced the head of IIBU when he left. The journey carried on from there to UBS, HSBC and then finally I was blessed with the task of establishing the first dedicated stand-alone Islamic bank in the UK, the Islamic Bank of Britain. This was a huge and daunting task and an achievement that will go on with me for a long time. More than a personal achievement, it was also an inner pleasure to see a deprived community achieve its long-awaited objective. Along with my colleagues I was just a very small component in an ocean.
What does your role involve?
After leaving Islamic Bank of Britain recently, I established my own consulting practice to help convert conventional banks to Islamic banks, as well as offering various other services. I see that there is a huge gap in our offerings of Islamic banking products and services. Small boutique banks are being established offering a limited range of products. My aim is to consolidate this and bring together a few small banks into solid, bigger institutions, thus applying the economy of scale and offering innovative products in a much better and more competitive manner.
What is your greatest achievement to date?
I played a key front line role in the establishment of the Islamic Bank of Britain, the offering of Islamic mortgages in Britain and lobbying successfully to abolish the double stamp duty on Islamic mortgages, being a founding member of the Bank of England working party. At CitiBank NA I turned around loss-making branch operations into profitability in less than a year. I am also a member of UK technical committee for Islamic finance qualification at the Securities Investment Institute.
Which of your products/services deliver the best results?
I would say leasing funds at IIBI.
What are the strengths of your business?
Our mission is to provide holistic solutions to our clients. Value addition and customer satisfaction is our primary objective. Monetary gains come way down the list of priorities for us. Our main strength is our people, customers and associates.
What are the factors contributing to the success of your company?
Our market contacts, competitiveness and knowledge. My background also plays an important role.
What are the obstacles faced in running your business today?
The Islamic banking sector is small and yet very crowded with lots of small consulting practices, but the main question is who understands customers better and can deliver value addition to the customers?
Where do you see the Islamic finance industry, maybe in the next five years?
I have always said that the Islamic finance industry will get a huge boost the day that Islamic banking is officially recognized by the Saudi Arabian Monetary Agency (SAMA). Now that SAMA is taking some practical steps, I see the growth of Islamic banking spreading like wildfire all over the Muslim world. There is no doubt that the advantage and momentum the Malaysians have got is tremendous. The Malaysian government and the Central Bank governor Dr Zeti in particular should be congratulated for that.
I also see the Takaful industry getting its belated but overdue share of the market in the Muslim as well as the western world. We will see the establishment of Islamic banks in North American markets. My concern remains that any new institution must bring value and offer a whole host of needed products and services, and not merely look at the most profitable products. Shariah scholars must ensure that they take assignments from those who are really addressing the overall market financial needs. We need to bring stability to this industry with careful and constructive planning. Taking short cuts and a cowboy approach is bound to kill this nascent industry.
Name one thing you would like to see change in the world of Islamic finance?
We must bring standardization to documentation and extend comprehensive training on Islamic principles and contract application in modern day banking. Islamic scholars will have to play a key role in educating the educators and the practitioners. Shariah scholars must undertake roadshows and raise awareness, not just to promote Islamic banking in the name of Islam, but to promote it as an alternative ethical banking system which can operate on a sound commercial basis.
Amana Banking Consultants is focused on the establishment of Islamic banks, Islamic windows within conventional banks and asset management firms around the globe. Other services offered include the provision of regulatory and compliance guidance, product and process development, project management, financial services recruitment, international business development, restructuring of financial services/banking, business improvement, banking training, acquisition strategies, corporate finance advisory and workflow engineering/re-engineering and value addition.