How Islamic finance can revive the future of retail banking

Islamic banking is growing 50% faster than banking sector.

According to a release, global Islamic banking assets with commercial banks to reach $1.8 trillion in 2013 (2011: $1.3 trillion), representing average annual growth of 17%. Islamic banking growth outlook continues to be positive, growing 50% faster than overall banking sector in several core markets.

As the world comes to grips with slower economic growth and uncertain markets, investors must seek new prospects to maximize returns. The Shariah compliant space has emerged as one of the most exciting and promising markets for new growth opportunities

As quoted by Islamic Finance News, Islamic retail system is to build a “fully integrated socially responsible financial system” which over the past five years, as the conventional system has been rocked by financial and economic crises, has benefited from a growing social profile as a safer and more ethical method of banking. President Obama famously commented on the 2008 financial crisis that: “The crisis was born of a failure of responsibility –from Wall Street all the way to Washington…” 

This is where Islamic Retail Banking steps in, as “The key advantage of Islamic retail banking is the maintenance of a strong sense of social responsibility. This perceived advantage has led to considerably increased interest in the sector from the international financial community, looking for a safe haven.”

According to - Moinuddin Malim, Chief Executive Officer - Mashreq Al Islami “During next 5 years, Islamic banking & finance will witness tremendous growth opportunities in new territories; however, only those will be able to successfully penetrate the new markets who have completed their product offerings that are at par with the conventional banking in terms of servicing, delivery channels and efficiency. Islamic retail banking and financing will be able to create a bigger impact by meeting the customer needs and providing solutions which are Shari’ah compliant.”

Islamic retail banking is at the frontline of the industry’s growth and acts as the pivotal point for development in changing the future of banking operations as a whole. As media focuses on the investment and commercial side of the industry and ignores the innovations occurring on the retail side. 5th Worild Islamic Retail Banking Conference, thus brings forth the opportunity to grasp and brainstorm market trends and insights, in-depth dialogues from global and local practitioners and phenomenal networking opportunities with key policy makers,islamic scholars, global Islamic retail bankers and business decision makers. 

WIRBC brings Global C level Islamic Retail Bankers together every year, platforming a powerful networking opportunity for conventional bankers, Islamic retail bankers, takaful companies, leading law firms and shariah experts to ensure that the strengths and weaknesses of the Islamic retail banking are probed every year and best practices shared to boost the asset growth.

5th Worild Islamic Retail Banking Conference, (26 – 27 November, Shangri-La Hotel in Dubai – UAE), will gather global speakers and industry peers involving in knowledge-sharing sessions, intriguing panel discussions, relevant case-studies, interactive workshop along with networking sessions to discuss, understand and analyze the importance of Islamic finance in regards with retail banking. 

To know more about this conference request for the complete conference agenda by emailing mohor.mukherjee@fleminggulf.com.