Could you provide a brief journey of how you arrived where you are today?
In 1997, I started off with ICICI bank in India, and to their Middle East office in 2002. In 2004, I joined Abu Dhabi Commercial Bank (ADCB) and in 2006 the bank decided to set up an Islamic window. Our full-fledged proposition as an Islamic window, ADCB Meethaq, was launched in 2008.
What does your role involve?
I lead a team of dedicated professionals who work with me across a range of activities. Our singular endeavor is to increase the share of Islamic business. To this extent our roles are that of ambassadors within the bank offering Islamic product alternatives to retail, corporate and treasury customers.
What is your greatest achievement to date?
After much consideration we consciously decided to implement Islamic banking as a product stream, as it gives us the same infrastructure and exactly the same customer experience in conventional banking, yet it is Shariah compliant. Our back office had to be 100% transparent, with no manipulation, pooling or mixing of funds or products. This required a huge amount of investment. Firstly, in a whole new separate core banking system that segregates customer’s funds, all the way from their accounts to the bank’s balance sheet and a paper trail to ensure compliance. Documentation is absolutely separate for each system. It is only the point of contact which is singular, ensuring continuity and quality of service. The strategy has produced good results, judicious usage of existing manpower resources, as incremental business has been mobilized at marginal cost.
Which of your products/services deliver the best results?
All our products across retail, small and medium enterprises (SMEs), corporate and treasury aim at achieving wealth that is created by sustained human effort through real economic activities.
We have achieved considerable success across our retail and SMEs portfolio, both on the liabilities and asset front. Additionally, our corporate and treasury products have witnessed decent take off. On the service front, a majority of our Islamic customers subscribe to internet banking, mobile options and telephone banking.
What are the strengths of your business?
The strength of our business lies in the three design principles that remain the hallmark for ADCB Meethaq:
- Shariah compliance: Every product offered is supported by a fatwa signed by our independent Shariah supervisory board.
- Flexibility of choice: Nothing is imposed and customers can pick the accounts/products that works best for them.
- Maximum convenience and easy access: Customers are able to use all the same distribution and service channels that ADCB conventional customers are used to. Moreover, it is our distribution franchisees that provide us with the competitive edge. A well oiled branch machinery, sales team and diligent relationship managers remain our key success factors.
What are the factors contributing to the success of your company?
Passion and focus accompanied by an unquestioned faith in our attempt to deliver a credible Islamic option is what keeps us going each day. On the human capital front, perseverance, commitment, discipline, team work and integrity of approach have mattered a lot in our success.
What are the obstacles faced in running your business today?
I would rather term them as interesting day to day challenges. The challenge is to acquire genuine new to bank Islamic business and not grow by cannibalizing the conventional business.
Where do you see the Islamic finance industry in, say, the next five years or so?
As Islamic banking gains critical mass, regulatory norms, risk assessment and governance will play a critical part. Islamic windows of conventional banks might become history as demand for pure Islamic players offering genuine Islamic products will increase and become mandatory. There will be more emphasis on ethics and social values rather than legalistic mechanics and modified contracts. Product innovation with credible allocation of credit and risk will become the hallmark of innovation. Islamic banks will focus on community banking, microfinance, socially responsible investment, and assist in the flow of credit to deserving economies and poorer segments. A lot of developing countries globally should benefit from these activities.
The next five years will see many individuals and institutions with ephemeral gains in sight and malaise being forced out of business.
Name one thing you would like to see change in the world of Islamic finance.
I wish to see more executive powers granted to the Shariah supervisory board members. They should be incorporated into the board of directors of Islamic institutions to empower them, increase accountability and stop operational malpractice.