Could you provide a brief journey of how you arrived where you are today?
I fell into the banking industry by accident, as I wanted to try something different. I proved myself as an exceptional salesman and people manager, and it wasn’t long before I was headhunted by the private banking industry and moved to the City of London. However, despite my success, I was plagued by doubts about my chosen profession, as my devout family was concerned about the source of my income.
In 2003, I traveled to Pakistan and the Middle East to visit relatives, and became aware of the growing Islamic finance industry. On my return, I was informed by several industry contacts that a stand-alone Islamic bank was under development in my home country. Within weeks, I had met the deputy CEO who recruited me as deputy head of operations.
In August 2004, the Islamic Bank of Britain (IBB) was granted a license by the UK’s banking regulator, and I took on a new role to expand the branch network across England — culminating in the creation of eight branches in the heart of Muslim communities around the country.
For the past three years, I have been involved in the marketing and sales function, promoting the Islamic finance industry across the UK and Europe. I am a Fellow of the Institute of Islamic Banking and Insurance in London.
What does your role involve?
I am responsible for several important areas:
• Market research — giving us an insight into the financial needs and desires of the UK’s Muslim community.
• Media relations — representing the UK Islamic finance industry to media channels across the world.
• Campaign management — promoting IBB’s products via coordinated TV, radio, print and online advertising.
• Internal communication — ensuring that IBB staff are fully aware of the company’s progress and any major developments.
• Staff training — ensuring that product knowledge and customer service quality is of the highest standard.
What is your greatest achievement to date?
Being part of the small management team that set up the first Islamic bank in the western world. IBB was also the first new bank in the UK for more than 90 years.
Which of your products/services deliver the best results?
I believe the IBB savings accounts are a superb product. They are the only product in the UK that offers ordinary Muslims a halal return on their savings.
Our Islamic commercial property finance is also a great product, because it is priced in direct competition with conventional mortgages. I think it’s important that Islamic finance products provide good value for money.
What are the strengths of your business?
Being the only stand-alone Islamic bank in the country is our first unique selling point. Furthermore, we offer several products that are unique in the marketplace such as halal personal finance (based on Tawarruq), Islamic savings accounts and commercial property finance based on the diminishing Musharakah model.
What are the factors contributing to the success of your company?
We are an innovative company that is widely regarded as a pioneer within our home country. Our true strengths are passion, conviction and commitment of our staff.
What are the obstacles faced in running your business today?
There are several challenges, the majority of which are no different from those faced by conventional banks. I think the main issue for Islamic finance in the west is the lack of education among western Muslims about the importance of Shariah compliant finance. The masjid and imams can do a lot to address this issue.
Where do you see the Islamic finance industry, maybe in the next five years?
In five years’ time, I believe the Islamic finance industry will have evolved significantly. Many more conventional banks in the west will have started offering Islamic products, and these products will be much more sophisticated than the basic accounts and financing that are currently on offer.
Name one thing you would like to see change in the world of Islamic finance?
As has been repeatedly mentioned by the Shariah finance scholars, it would be great to see more banks moving towards the Musharakah and Mudarabah modes of financing. Only then can Islamic banks claim to be offering a truly significant alternative to the conventional banking system.
Since this interview, Junaid Bhatti has left Islamic Bank of Britain and set up an Islamic finance consultancy called “Ballencrieff House”. Visit www.ballencrieff.net for more details.