Islamic Retail Banking Awards 2019 Celebrating Innovation And Excellence In Islamic Retail Banking

Islamic retail banking is undergoing an evolution and is at an inflexion point. The pace of change is only expected to accelerate significantly over the next three to five years, despite the socioeconomic challenges and regulatory risks. Success will require clarity in direction, and speed and agility in execution.

The Islamic retail banking sector has seen significant regulatory and technological change alongside shifts in consumer behaviour in recent years. These changes have already had significant implications for the way Islamic retail banks operate. Further changes are likely to follow suit, with the potential for a more fundamental transformation of the sector in the longer term. But the key to progression is introducing innovative products and services, leveraging on digital revolutions such as Fintech and Artificial Intelligence (AI) all the while being Shari’a-compliant.

In a challenging market, some have been nimble in transforming themselves into winners, often through transforming and strengthening their retail banking business with the use of technology and a management upgrade. As digital transactions continue to outstrip branch transactions, Islamic retail banks have been trying to strike the perfect balance between physical and digital to create the branch for the future. All these they aim to achieve while competing against agile Fintech companies that try to unbundle their core offerings and erode their revenues.

“Those Islamic banks that have been nimble and adapted to client’s needs have come out on top on this year’s IRBA. The winning banks have presented a viable model of Islamic banking to the world.”

As part of its advocacy programme in promoting best practices and innovation in Islamic finance, Cambridge IFA (a financial intelligence house based in the UK) has been organising the Islamic Retail Banking Awards or IRBA for short on an annual basis. IRBA honours and celebrates the achievements and success of Islamic retail banks and individuals in islamic retail banking globally since 2015. This awards programme is now regarded as the leading Islamic retail banking awards programme in the world. Winners of IRBA exemplify how Islamic retail banks have successfully embraced digital innovation, enhanced their operational efficiency and delivered new, improved services for customers.

The well-attended 5th edition of IRBA was held on November 4, 2019, with much exuberance in the historic port city of Oman, Muscat. More than 50 awards were presented to institutions and individuals. The event drew more than 200 delegates, participants and guests.

Commenting on the programme, Chairman of the Awards Committee Dr. Sofiza Azmi said, “Those Islamic banks that have been nimble and adapted to client’s needs have come out on top on this year’s IRBA. The winning banks have presented a viable model of Islamic banking to the world.”

Though numerous organisations are conferring awards in the Islamic banking sector, the Cambridge IFA-led IRBA awards measure the performance against a more holistic criterion including non-commercial factors. The winners are chosen through an academically rigorous bank efficiency analysis undertaken by Cambridge IFA. The intricate analysis carried out by the research team, reveals winners on regional, national, and international levels.

IRBA celebrates excellence and achievements in two broad categories:

• Strongest Islamic Retail Banking – Cambridge IFA conducts a study on Islamic banking efficiency of over 130 Islamic retail banks. Winners are selected based on this rigorous study.
• Critics’ Choice Awards – Award winners in this category are selected by the Critic’s Choice Committee comprising of leading Islamic banking experts.

The Critics’ Choice Awards aim at including those institutions and individuals that cannot be captured by efficiency analysis. This award category is wider in scope as they are based on a wider set of variables beyond efficiency. The factors that influence Critics’ Choice Awards are:

1. Financial performance
2. Commitment to Islamic banking and
3. Adherence to Shari’a assurance

With each passing year, the awards are increasing in scope and new categories are being added. Prof. Dr. Humayon Dar, the founder of IRBA singled out this fact, “With the 5th edition of IRBA this year, we feel humbled by the fact that IRBA has been increasing in grandeur and scope every year.” He added that IRBA has been tracking and rewarding the success stories in the Islamic retail banking sector; including both the professionals and institutions. “These are the stalwarts of IBF,” he commented.

Dr. Sofiza Azmi, in her welcoming remarks, said: “Islamic banks are continuously coping with competitive pressures from many quarters, in particular, changes in consumer banking preferences. As customer demand gears towards highly personalised services, anytime-anywhere banking and digital banking, new disruptive technology such as Artificial Intelligence, cognitive robotics, and blockchain are enabling historically unattainable services.”

“With the 5th edition of IRBA this year, we feel humbled by the fact that IRBA has been increasing in grandeur and scope every year.”

The highlight of the awards programme, the topmost award ‘Islamic Retail Banking Leadership Award 2019’ was presented To Md. Mahbub ul Alam, the Managing Director and CEO of Islami Bank Bangladesh, in recognition of his remarkable performance in Islamic retail banking and introducing specialised banking products in Bangladesh.

As an expert in banking, he is actively associated with different professional bodies including Bangladesh Foreign Exchange Dealers Association’s (BAFEDA) Executive Committee as well as Arbitration Committee and ICC Standing Committee for Banking Technique & Practice.

Bangladesh is a huge market for Islamic banking and has massive potential for growth. Although it still needs more exposure in the global Islamic financial services industry for the wider world to appreciate the great work being done in the country. According to the Islamic Finance Country index (IFCI) of the Global Islamic Finance Report (GIFR) 2019, Bangladesh has experienced phenomenal growth in the Islamic banking and finance (IBF) following strong public demand. The country moved up two positions to become the 8th most important market for Islamic banking and finance in the world. Islamic banking now accounts for more than 20% market share of the entire banking industry.

‘IRBA Personality of the Year 2019 Award’ was conferred to Mr. Junaid Ahmed, President and Chief Executive Officer of Dubai Islamic Bank Pakistan Limited. He commented, “I would like to thank Cambridge IFA for bestowing me with ‘Personality of the Year’ Award. As an Islamic finance professional, I am putting my share of expertise in the growth of the Islamic banking industry in Pakistan, which has now become 15% of the total pie. I wish all the best to Cambridge IFA for their future events.”

This year Dubai Islamic Bank (DIB) top the honours after being named the ‘Strongest Islamic Retail Bank in the World 2019’ for the second time in a row. The bank also took home the title of ‘Strongest Islamic Retail Bank in the UAE 2019’ for the fifth consecutive year along with the ‘IRBA Excellence in Customer Experience Award 2019’. The awards recognise the dominance of DIB in the Islamic retail banking space as the largest Islamic bank in the UAE.

Mr. Nasser Al Awadhi, Chief of Consumer Banking of Dubai Islamic Bank remarked, “We are grateful that our efforts to support the growth of Islamic finance have been acknowledged through these awards. Over the last few years, the bank has enjoyed unparalleled success. We will continue to reshape the banking landscape by investing in innovation that further enhances the client experience and by embracing smart technology that brings simpler, faster and more transparent banking.”

The bank is also rapidly growing its footprint beyond the traditional borders and has established a strong presence in Indonesia, Pakistan, and East Africa. It is the largest Islamic bank in the UAE in terms of assets and second largest Islamic bank in the world.

Dubai Islamic Bank Pakistan Limited (DIBPL), a wholly-owned subsidiary of DIB, UAE; also emerged as a big winner at IRBA 2019. DIBPL won the ‘IRBA Best Islamic Retail Banking Brand in Pakistan’ and ‘Strongest Islamic Retail Bank in Pakistan’.

“Dubai Islamic Bank would like to congratulate Cambridge IFA on successfully hosting Islamic Retail Banking Awards 2019. We at Dubai Islamic Bank Pakistan feel privileged to be adjudged Strongest Islamic Retail Bank Pakistan & Best Islamic Retail Banking Brand in Pakistan. We owe our success to the strategic vision given by DIB Group & our hardworking staff. We remain steadfast to make in-roads in the Retail Banking industry of Pakistan in supporting the economic growth of the country.”

“Dubai Islamic Bank would like to congratulate Cambridge IFA on successfully hosting IslamicRetail Banking Awards 2019. We at Dubai Islamic Bank Pakistan feel privileged to be adjudged Strongest Islamic Retail Bank Pakistan & Best Islamic Retail Banking Brand in Pakistan.”

‘The Strongest Islamic Retail Bank in Asia 2019’ award was presented to Islami Bank Bangladesh Limited (IBBL). “In the journey of 36 years, IBBL has materialise its commitment to all stakeholders by being highly professional and emerging as the strongest bank in Bangladesh. IBBL is now serving 14 million clients through its 348 branches, 700 Agent Banking Outlets and banking booths with a deposit portfolio of USD 10.72 billion and an investment (Credit) portfolio of USD 10.09 billion”, as mentioned in the welcome statement from the bank.

As the leadership role in IBF is shifting towards Indonesia, the effects could be seen in the winners list. In the strongest banks in the countries’ category, PT Bank Syariah Mandiri claimed the ‘Strongest Islamic Retail Bank in Indonesia 2019’ award. It also won two other awards at IRBA 2019; ‘IRBA Most Innovative Islamic Retail Bank in Indonesia’ and ‘IRBA Best Sustainable Finance Strategy’.

Delineating the Shari’a-first strategy, a note from the bank stated, “as a Shari’a bank that runs its operations on Maqasid-al-Shari’a principles, i.e., aiming for the welfare of the people and the environment, Bank Syariah Mandiri has committed to implement the sustainability principle in its regulation and operations. Thus, in running the business, Bank Syariah Mandiri does not only aim to find profits, but our presence must contribute to the people (Ummah) and the environment (world).”

“Bank Syariah Mandiri does not only aim to find profits, but our presence must contribute to the people (Ummah) and the environment (world).”

Bank Nizwa, Oman’s leading Islamic bank, was named the ‘Strongest Islamic Retail Bank in the Sultanate of Oman’ for the fifth consecutive year, as well as ‘IRBA Best Branch Experience 2019.’ The award recognised the bank’s efficiency in terms of operations and management of its retail banking services. In line with its strategy to empower communities with the benefits of Islamic finance, Bank Nizwa has been at the forefront of introducing progressive products and services.

Mr. Khalid Al Kayed, CEO of Bank Nizwa commented, “Oman’s uniquely balanced approach to Shari’a-compliant banking is enabling the industry to thrive. At Bank Nizwa, we pride ourselves for driving the growth of the industry and raising awareness about its benefits to be reaped by society and the economy. Being recognised for the fifth year in a row by the Islamic Retail Banking Awards is a testament that our strategy is paying dividends not only for us as an organisation, but most importantly to our customers and stakeholders.”

“Being recognised for the fifth year in a row by the Islamic Retail Banking Awards is a testament that our strategy is paying dividends not only for us as an organisation, but most importantly to our customers and stakeholders.”

‘Strongest Islamic Retail Bank in Qatar 2019’ was awarded to Qatar International Islamic Bank (QIIB) for the second time in a row. QIIB also won the IRBA Most Innovative Islamic Retail Bank in Qatar 2019. Dr. Abdulbasit Ahmad Al-Shaibe, CEO of QIIB said, “We consider these awards as recognition of our strong efforts towards innovating bespoke products and developing our retail portfolio and offering the best Shari’a- compliant products and services.”

He added that “QIIB’s excellence and quality of its integrated services have resulted in its customer base growing exponentially. To this effect, the Bank has opened many branches and introduced alternate channels, which have witnessed enormous development. QIIB has maintained strong financial performance across its various budget plans. International rating agency Fitch rated QIIB at ‘A’, while Moody’s has given ‘A2’ with a stable outlook. Our strong financial position is primarily due to the fact that we are an integral part of the Qatari banking sector as we derive our strength from the Qatari economy, which is one of the strongest in the region and the world.”

“We consider these awards as recognition of our strong efforts towards innovating bespoke products and developing our retail portfolio and offering the best Shari’a-compliant products and services.”

Other Islamic retail banks that were recognised as the ‘Strongest Islamic Retail Bank’ in their respective countries were; Kuveyt Turk Participation Bank in Turkey and Jordan Islamic Bank in Jordan.

The ‘Critics’ Choice Upcoming Personality in Islamic Retail Banking (Product Development & Structuring) Award 2019’ was awarded to Mr. Asfand Zubair Malik, Head of Product Development & Shariah Support, Askari Bank Ltd – Ikhlas Islamic Banking.

“I am thankful to the selection committee and pleased that Cambridge IFA organised such a splendid event to highlight, acknowledge and honour the success stories in Islamic Retail Banking Sector. I believe that such events will serve as a phenomenal force in improving global Islamic finance footprint in years to come.”

‘IRBA Best Emerging CEO in Islamic Retail Banking 2019’ was presented to Mohd Muazzam Mohamed, CEO Bank Islam Malaysia Berhad and its parent company BIBM Holding Berhad. He shared his success story as, “Praise to Allah for all the blessings He has bestowed upon us in these challenging times. Being a leader does not happen overnight. It is a journey that is founded on relationships and developing people in achieving dreams, plans and missions.”

A number of Critics’ Choice Awards were also announced at the Awards Ceremony. Alinma Bank was chosen as the ‘IRBA Most Innovative Islamic Retail Bank in Saudi Arabia 2019’. Speaking about the award, Alinma Bank CEO, Mr. Abdulmohsen Al-Fares, expressed his appreciation and stressed the bank’s determination to maintain its position as a leader in the provision of modern, exemplary, Shari’a-compliant banking products and services.

“It is an honour to be recognised by the Islamic Retail Banking Awards and to receive these two awards amidst so many other noteworthy accomplishments made by institutions within the Islamic finance industry over the past year. Our collective commitment to the idea of Islamic finance drives us to do better and to be better in service of this cause, and I remain optimistic for the future of the industry,” he explained.

‘IRBA Most Innovative Islamic Retail Bank’ awards were bestowed on different banks for their services in their respective countries:

• IRBA Most Innovative Islamic Retail Bank in the UAE 2019: Emirates Islamic, part of Emirates NBD Group
• IRBA Most Innovative Islamic Retail Bank in Turkey 2019: Kuveyt Türk Participation Bank
• IRBA Most Innovative Islamic Retail Bank in Indonesia 2019: PT Bank Syariah Mandiri
• IRBA Most Innovative Islamic Retail Bank in Bangladesh 2019: Islamic Bank Bangladesh Limited (IBBL)
• IRBA Most Innovative Islamic Retail Bank in Jordan 2019: Jordan Islamic Bank

‘Most Innovative Islamic Retail Bank in Europe 2019’ award was rightly won by KT Bank AG. A spin-off of the leading participation bank in Turkey, Kuveyt Türk Participation Bank, KT Bank AG is the pioneer that introduced Islamic banking in Germany and the Eurozone. KT Bank AG was also the proud recipient of IRBA Excellence Award 2019 and Best Emerging Islamic Retail Bank in Europe 2019.

Mr. Ahmet Kudsi Arslan, CEO of KT Bank AG said in the congratulatory note, “We are enthusiastic to receive our first IRBA this year–and three awards at once! This shows that our pioneering work in Germany and the Eurozone does not go unnoticed. With IRBA acknowledging our efforts, we follow the successful path of our mother company Kuveyt Türk Participation Bank.”

As banks are embracing technology in the conventional sector in general and Islamic banks specifically, IRBA recognised the achievements of banks in the digital and fintech sector. ‘IRBA Best Digital Branch of the Year 2019’ award was bestowed on Alinma Bank, Saudi Arabia.

Mr. Abdulmohsen Al-Fares, CEO of Alinma Bank said, “We are grateful to have our efforts towards innovation recognized and to likewise have a spotlight shone on our digital branch initiative. We fully embrace a forward-thinking approach that works to solidify the relevance of Islamic banking in the 21st century. To this end, Alinma has invested in maintaining a technological edge; and as new technologies emerge and mature, we will seek to appropriately leverage them on behalf of Alinma’s customers and the market at-large.”

Emirate Islamic Bank, UAE won the ‘IRBA Excellence in Digital Banking Award 2019’ for its efforts to digital transformation and achieving excellence in digital banking. In recent years, Emirates Islamic also claimed the ‘Best Mobile Banking app’ award and the ‘Best Islamic Card’ for its Emirati Credit Card. It also bagged the most improved website award previously.

Fintech is the way forward for the Islamic Banking, as millennials are taking the driving seat. ‘IRBA Best New Mobile Banking App 2019’ went to Warba Bank, Kuwait for its pioneering app ‘Jam3eya’. The handy app lets the users make settlements and timing of the payment as well deciding when to collect Jam3eya funds with an easy, modern, and user-friendly interface.

This year also the Critics’ Choice ‘IRBA Best Non-Bank Islamic Retail Finance Institution 2019’ was bagged by Siraj Finance, for its commitment and significant contribution to the development, growth and success of the Islamic retail non-banking arena

“On behalf of our entire Siraj Finance PJSC Team, I would like to thank the Islamic Retail Banking Awards (IRBA) for this esteemed honour. Special gratitude to our esteemed UAE leadership and IRBA for this prestigious award and honour in the midst of a diversified economic wish-list that sets precedence to a successful and prosperous future in the times ahead.” Mr. Muhammad Rusan Fyroze, CEO of Siraj Finance PJSC commented on receiving the award.

Other outstanding awardees included:

• FNB Islamic Banking for IRBA BEST ISLAMIC RETAIL BANKING WINDOW IN SOUTH AFRICA & BOTSWANA 2019
• ADCB Islamic Banking for IRBA BEST ISLAMIC BANKING WINDOW IN THE UAE 2019
• Trustbank Amanah for IRBA EXCELLENCE AWARD 2019Tawafuq Consultancy for IRBA BEST TRAINING PROVIDER 2019
• Noor Bank for IRBA REMITTANCE PRODUCT OF THE YEAR 2019 and IRBA Best Islamic Retail Banking Product (Liabilities Side) 2019

BLME for IRBA BEST FIXED RATE SAVINGS ACCOUNT 2019

• Gatehouse Bank plc for IRBA BEST ISLAMIC HOME FINANCING PLATFORM 2019
• National Bonds Corporation for IRBA MOST INNOVATIVE SAVINGS PROGRAMME 2019
• Bahrain Institute of Banking and Finance (BIBF) for IRBA BEST SERVICE PROVIDERS AWARD (TRAINING AND DEVELOPMENT) 2019
• Emirates Islamic for IRBA EXCELLENCE IN DIGITAL BANKING 2019
• BTPN Syariah for IRBA MOST INNOVATIVE BANK FOR SME FINANCING 2019 and IRBA BEST BANK FOR FINANCIAL INCLUSION 2019
• Bank Islam Malaysia Berhad for IRBA BEST SOCIAL FINANCE INITIATIVE AWARD 2019
• Bank Muamalat Malaysia for IRBA INNOVATIVE SERVICE OR PRODUCT OFFERING AWARD 2019
• Islamic International Arab Bank for IRBA BEST ISLAMIC RETAIL BANK FOR SMEs 2019
• Alliance Islamic Bank for IRBA CHAMPION IN SOCIAL ENTREPRENEURSHIP AWARD 2019
• Amãna Bank for IRBA SOCIAL RESPONSIBLE BANK OF THE YEAR 2019
• BNI Syariah for IRBA MOST INNOVATIVE ISLAMIC RETAIL BANK IN WAQF INITIATIVE 2019
• Azaadi App by OneGram for IRBA BEST SERVICE PROVIDERS AWARD (MOBILE PAYMENTS) 2019

In the Critic’s Choice Award Categories, ‘IRBA Excellence Awards’ were presented to three outstanding professionals. Dr. Amjad Bangash, Head of Shariah Department & Secretary Shariah Board, Muzn Islamic Banking, Oman; Ashraf Hameed, Lead – Business Support, ADCB Islamic Banking; and Mohsin Aikal, Head of Liabilities, Payments and Bancassurance, for their remarkable contribution in the ambit of Islamic banking and finance particularly in Retail Banking.

“Some of these leading personalities are selected by the IRBA Critics’ Choice Committee to celebrate their leadership roles. The global Islamic financial services industry will remain indebted to them for their untiring efforts to promote Islamic retail banking,” Dr. Sofiza Azmi commenting on the 2019 winners.

Dr. Sofiza Azmi added that the strongest retail banks should be the safest banks to do business with both by the customers and peer institutions. The operation and management are significant factors indicating the safety level of banks than the size of the banks. She congratulated all award winners and thanked all stakeholders whom made the awards ceremony a success.