“Every man who is not a monster, a mathematician, or a mad philosopher, is the slave of some woman or other.”
George Eliot
Call me mad or a philosopher or both, I don’t mind but what I really mind is the insistence of people to make Islamic banking and finance (IBF) all-inclusive by changing its very nomenclature. I fear that reading meaningless discussions on social media and various other platforms on the issue of rebranding Islamic banks by another name to make it more mainstream is getting me to the point of madness. Before suggesting so-called renewed names to IBF, these guys should first change their own names from Muhammad to Michael or John Travolta or whatever that suits and pleases them, if they are not already called so or haven’t done so. These alleged supporters and advocators should learn from the great story of Muhammad Ali Clay whose death was mourned by everyone – Christians, Jews, Hindus, Muslims and so many others – despite him being a Muslim who not only insisted on his Muslim identity but was proud of it as well .
Those who advocate for terms like participation finance, Abrahamic finance, ethical banking, or just naming a bank as a bank (and not an Islamic bank!) completely failed to understand the demography of Muslims and the potential market IBF can tap into by just being Islamic. In today’s world, businesses owned by non-Muslims are trying to exploit the opportunities that Muslims offer them as a globally significant social group. On the other hand, these alleged supporters are trying to lure Islamic bankers to focus on getting Islamic financial business from non-Muslims. It is complete nonsense!
There are almost 2 billion Muslims living on this planet, and IBF has so far reached out to no more than 100 million of them. The proponents of making IBF more mainstream by changing its nomenclature are like those who have been defeated on their home turf and are now proposing a new game at an “away” venue. This is akin to suggesting that the English cricket team should play and win at Eden Gardens after being defeated by the Indians at Lord’s.
Changing the nomenclature of IBF is a propaganda developed by the so-called Western experts of IBF. Such individuals are found in abundance when IBF performs well, much like that myriad of small and uninvited bugs that suddenly appear from nowhere in rich environments. When they fail to get any business from Islamic financial institutions or when they find that Islamic financial markets are not doing as well as they first thought or believed, they are quick to jump ship when their expectations are not met. Some can be seen running businesses like photography in the cities like London.
It is a fact that Muslim users of Islamic financial services have rejected Western banks and financial institutions that tried to get their patronage. The proof of this lies in the size of the IBF teams of such banks. Either they have completely disappeared or have shrunk in size too much to be visible. The so-called Heads of Islamic Finance of such banks are involved in conventional businesses of the banks they are working for. In the process, they are losing personal credibility even more.
I have huge respect for many Western intellectuals who have been involved for a long time in IBF. Their analyses are always deeper than what they otherwise appear. If they suggest something like using a neutral name for an Islamic bank in the UK or Germany, it is in a context. The social media “freemen” would like to generalise everything that may come their way. It is saddening to see such intellectually pauper minds have quite a few yes-men around them.
I had no qualms when Islamic Bank of Britain changed its name to become Al Rayan Bank PLC or when Gatehouse Bank chose not to use the word “Islamic” in its title. The Western markets are on the periphery of IBF and Islamic banks therein may call themselves whatever they want to. However, I shall object if tomorrow Meezan Bank decides to call itself an ethical bank rather than an Islamic bank. I am not suggesting that such a move is even under consideration at Meezan Bank!
What is more important here is increasing the socioeconomic value of IBF rather than trying to give it another identity. If Islamic banks provide cheaper financing, better service quality, greater social concern, and in fact show more compassion; no one – whether Jews, Christians or Hindus – would have any problems in dealing with Islamic banks. Just imagine an Islamic bank offering interest-free mortgages for a limited time period and asking people to take oath on the Holy Quran that they would pay the bank what is owed. You would see even atheists lining up in front of the bank. Their religious inclination or lack of faith will not stop them from dealing with an Islamic bank.
Islamic bankers should be asked to improve their business model: be better than conventional banks; show more compassion when someone may default owing to adverse personal economic circumstances or due to illness; give payment holidays to those who may need a bit of respite; or simply allow debtors to pay early without having to incur any early payment penalty. These are the important Islamic characteristics that IBF should adopt, and when they do so all non-Muslims will be interested in dealing with Islamic banks even if Donald Trump attempts to construct a wall to stop them doing so.
Understanding the financial needs of Muslim communities around the world is crucial to the success and sustainable growth of IBF. A vast majority of Muslims need access to finance. Hence, financial inclusion should be big on the agenda of Islamic banks. They must reach out to the financially excluded through technology and other modern means. FinTech could be a relevant tool here. Mobile banking, branchless franchises and non-bank agency models must be adopted by Islamic banks to increase their shares in the markets they are operating in.
There is also a need to emphasise on changing the lifestyle of Islamic bankers who should show moderation and modesty in their behaviour and conduct. Creating examples of best practices – for example, CEO of an Islamic bank riding a bicycle to office – may also help. Employees of an Islamic bank donating a meal per month to the needy and the destitute must also boost their profile in social sector. Some of these practices have already been adopted by Islamic banks but there is a need to institutionalise them in the practice of IBF at the industry-wide level. If Islamic bankers become better Muslims, no one would need to be apologetic about the identity of Islamic banks.
