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Posted by: HiMY on Friday, May 11, 2007 - 10:23 PM EST (1420 Reads)
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ABU DHABI, UNITED ARAB EMIRATES -- The recently launched Makkah Credit Card by First Gulf Bank (FGB), one of the UAE’s leading financial institutions based in Abu Dhabi, has recorded high demand.
“The market response to the Makkah Credit Card has exceeded expectations as we witness exponential growth in the Shariah-compliant market for Islamic products. The First Gulf Bank’s ‘Makkah Credit Card’ meets the requirements of customers who need to keep pace with modern life, without compromising their beliefs,” said Product Head, Ramzi Al Amaary.
 Providing customers with a viable alternative to traditional interest laden products, the Makkah Credit Card has been designed to offer convenient Shariah-compliant payment methods, and rewards cardholders with the opportunity to earn ‘Steps’ to travel to the Holy City of Makkah. For every AED 1.00 spent on the card, customers earn one step.
As the region's first stand-alone, unsecured Islamic credit card, the First Gulf Bank ‘Makkah Credit Card’ is issued in conjunction with Visa International to provide customers with essential global coverage.
Additionally, in the Islamic spirit of community, the card provides protection against sudden tragedy. The ‘Takaful Income Plan’ compensates the cardholder in unforeseen eventualities, such as accidental loss of life or permanent total disability as a result of an accident. Cardholders receive the protection at no extra charge and are automatically enrolled when they apply for the card.
The demand for Shariah-compliant products has increased dramatically worldwide since the launch of the first Islamic finance institution in Malaysia 30 years ago.
The GCC is at the forefront of the sector with the creation of forward-thinking and innovative Shariah-compliant Islamic banking products as it continues to lead the way for this key global growth market.
“Industry sources estimate the Islamic finance sector to be worth around $400 billion globally,” concluded Ramzy.
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Posted by: HiMY on Friday, May 11, 2007 - 09:27 PM EST (969 Reads)
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ABU DHABI, UNITED ARAB EMIRATES -- Abu Dhabi-based First Gulf Bank (FGB), one of the UAE’s leading financial institutions, has reported record first quarter results with a net profit of AED 406 million (US $ 111 million) for the first three months of this year ending 31st March.
The results – a 8% increase on the first three months of 2006 – reflect growth across all the bank’s core businesses, including corporate, treasury and investment, retail and ancillary businesses. Total operating income in the first quarter of this year reached AED 564 million (US $ 153 million), exceeding the first three months of 2006 by 9%.
“This is a very encouraging performance when considering that first quarter results for 2006 were aided by revenue from two major IPOs and the absence of similar revenue in the first three months of this year. While the core net profit represented only 35% of total 2006 first quarter net profit, it represented 65% of total net profit for first quarter 2007” explained André Sayegh, FGB’s Chief Executive Officer. “We have continued to reap the dividends of our highly focused strategy of income diversification which will further advance by seizing opportunities emerging from the vibrant UAE economy which allows us to grow our loan book and fee income,”.
“FGB is achieving healthy liquidity, profitability and efficiency ratios with its loans-to-deposit ratio at 80%, return on average assets at 3.3%, return on average equity at 17.3% and cost-to-income ratio at 26%.”
The bank also maintained excellent international-standard ratios on non-performing loans and their provision coverage. Its non performing loans to gross loans ratio is 1.3% and provision coverage around 133%.
“FGB’s balance sheet also demonstrates consistent growth. After excluding the March 2006 IPO outstandings, total assets rose 55% on the same period last year, advances increased by 45%, deposits by 119% and shareholder equity by 8%,” added André Sayegh.
At the end of March this year, FGB’s earnings-per-share was AED 0.32 (US $ 0.09) compared to AED 0.30 (US $ 0.08) at the end of March 2006. “In line with the Board’s pledge to shareholders at the last annual general meeting, the bank is now working towards achieving an average return on equity in excess of 18%,” said André.
“We intend to deliver this by continuing to diversify revenue streams, widening our core businesses through deeper market penetration with the expansion of our branch network and presence throughout the Emirates, the launch of innovative products and services and international expansion via representative offices and acquisitions,”.
During the first quarter, FGB has launched the region’s first stand-alone, unsecured Islamic Credit Card – the Makkah Credit Card – which allows holders to earn ‘Steps’ to travel to the Holy City of Makkah.
“And, in line with our corporate philosophy that our people are our strongest asset, we will continue investment in staff and infrastructure and will strengthen our risk management tools and processes through investment in Basel II automated systems.”
FGB recently contracted Dun & Bradstreet, the worldwide specialist provider of business information, to enhance and develop the bank’s risk management and compliance protocols. The tie-up provides consultancy and technology solutions for the development of processes and systems that meet the exacting Basel Capital Accord standards – known as Basel II – which has created an urgent need amongst banking organisations for sophisticated risk management tools.
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Posted by: HiMY on Friday, May 11, 2007 - 09:23 PM EST (878 Reads)
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By Shakir Husain
DUBAI, UNITED ARAB EMIRATES -- Dubai: Dubai Bank, which sold its entire credit card portfolio to a unit of Dubai Holding this year before turning Islamic, said yesterday it has re-entered the market with a Sharia-compliant card.
Its old business amounted to Dh180 million and 80,000 card members.
The bank's customer base gave Dubai Holding company Dubai First a 3.2 per cent share of the local credit card business.
Dubai Bank has started issuing Visa credit cards again after bringing the business in conformity with Islamic principles, officials said.
The new "Islamic Covered Card" works "just like a conventional card" for consumers, chief executive officer Abdul Aziz Al Muhairi said.
"We have a target of 10,000 customers in the next by the end of 2007," he said.
Huge potential
There are an estimated 2.5 million credit cards in the country and the number is growing 25 per cent annually.
The new card allows the customer to make purchases at any merchant outlet and franchises throughout the world.
However, in keeping with Sharia principles, the card holders would not be able to conduct prohibited transactions in places such as casinos, liquor shops and gambling outlets, said Adnan Chilwan, head of marketing and product development.
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Posted by: HiMY on Friday, May 11, 2007 - 09:18 PM EST (920 Reads)
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DUBAI, UNITED ARAB EMIRATES -- Dubai Bank today announced the launch of its new Islamic Covered Card, a unique Shari'a Compliant card that is also accompanied by a value packed and fully-loaded Rewards Program called 'Choice'.
 Mohammed Juma, Head of Corporate Communications, Dubai Bank; Abdulaziz Al Muhairi, CEO, Dubai Bank; Adnan Chilwan, Head of Marketing & Product Development, Dubai Bank; and Mohammed Al Nahdi, Head of Distribution, Dubai Bank during the press conference.
The Islamic Covered Card allows the customer the convenience to make purchases at any merchant outlet and franchises throughout the world, with the flexibility to pay back the amount depending on percentage of their choice.
Abdulaziz Al Muhairi, CEO, Dubai Bank said: 'Dubai Bank's Islamic Covered Card enables customers to make use of a value-packed product without compromising on ethical values. Our keen focus on the needs of our valued customers continues to drive the Bank's success and growth, and our new range of Sharia'a compliant products and services are catering to the needs of our retail, corporate, and investment banking customers in equal measure.'
Profit rates for Dubai Bank's Islamic Covered Card are just 1.5% per month, representing a highly competitive rate in today's market compared with other cards available - typically 24-30%.
Adnan Chilwan, Head of Marketing & Product Development said, 'Our card and the accompanying launch offer is fully loaded in every sense. With this card the customer not only can benefit from the Choice Rewards Program but also can take advantage of the introductory launch offer. Customers enrolling for the card during the next 3 months will get their card free for life, will pay 0% profit for the first 3 months and make absolutely no payment for the first 3 months - thus making this one of the strongest card offers in the market. This offer is not only available for Dubai Bank customers but also other bank customers who wish to transfer their outstanding from their other bank card to a Dubai Bank covered card.'
'Choice', the comprehensive Rewards Program put together by Dubai Bank for users of its Islamic Covered Card, gives its customers the option of three schemes with which to reap the benefits of using the card. Firstly, the Accumulate & Redeem Program offers the opportunity to gain 'Choice' points for every dirham spent on the card which can then be redeemed against various gifts such as tickets, electronics, appliances and household goods.
Secondly, the Discount Program offers cardholders exclusive membership to Dubai Bank's Dining Club, Shopping Club, and Health Care Club - where percentage discounts ranging from 10%-50% are available with numerous leading partners in their respective industries. Lastly, the Benefits Program offers Covered Card customers various schemes including free Life and Travel Insurance, Purchase Protection and Travel Assistance.
Note: ...and now you can be Muslim AND pro-Choice... who knew?
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Posted by: IslamBank on Monday, December 12, 2005 - 12:20 PM EST (1131 Reads)
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KUALA LUMPUR, MALAYSIA -- Bank Islam Malaysia Bhd (BIMB) and Malaysia Building Society Bhd (MBSB) aim to have 15,000 new cardholders within the next three years, riding on the unique features of their newly launched co-branding MasterCard credit card targeted at MBSB customers and employees.
MBSB, a 63 percent subsidiary of Employees Provident Fund (EPF) currently has 75,000 customers and about 500 employees in 23 branches nationwide.
Speaking to reporters after the launch of the card, BIMB general manager for consumer banking division, Datuk Wan Ismail Wan Yusoh, said the new credit card was also expected to bring a projected income of RM1.5 million during the period.
Also present were MBSB chief executive officer, Ahmad Farid Omar and MasterCard director for Member Relations & Advanced Payments, Mohamed Ameen.
According to him, the uniqueness feature of the card is the cardholders' outstanding balance or debts will be covered in the event of death and permanent disability.
This, he added would give cardholders peace of mind as well as removed unnecessary financial burden to the next of kin immediate family members.
"On top of that, Bank Islam will contribute RM1,000 for benevolence expenses to the next of kin or immediate family members," he said.
Wan Ismail said the introduction of the card was to provide greater convenience to MBSB customers and employees as well as facilitate electronic payment between the two organisations.
This, he said, was in line with the government's objectives to promote Islamic banking and to make it as an integral part of the Malaysian banking system, which in turn would provide benefits to the bank itself.
Based on that, the bank expects to increase its total number of credit cardholders to 220,000 from 106,000 by June next year as more new products would be introduced in the market.
"BIMB, from time-to-time always plans to have a smart partnership co-branding which other players. This is part of our strategy to fast track or boost the number of our new cardholders.
"Soon, we will launch some more community-based credit card products designed for those who are engaged in education related fields such as lecturers in universities," he said.
He said BIMB would focus on its credit card division and make it as profitable business segment in the near future.
He, however, refused to disclose any percentage contribution from the division rather than saying that the business was still in the early stage.
Meanwhile, Ahmad Farid said house buyers who qualify for a mortgage from MBSB were eligible to apply for the card.
"With this new product, mortgage customers of MBSB can now pay their monthly financial installments via credit card," he added.
The Bank Islam-MBSB MasterCard is Bank Islam's third co-brand card and the second for MBSB.
Established in 1983, the bank is the country's first Islamic bank and it currently has 89 service outlets and 235 auto-teller machines throughout Malaysia.
It also offers more than 70 shariah-compliant banking products and services to meet the various financial needs of the public, Muslims and non-Muslims.
Note: First Published: November 15, 2005 15:44
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Posted by: IslamBank on Saturday, December 10, 2005 - 09:37 AM EST (1442 Reads)
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DUBAI, UNITED ARAB EMIRATES -- Emirates Islamic Bank, participated in the second Islamic Retail Banking Conference that took place recently at the Grand Hyatt Dubai.
The conference follows in the footsteps of the highly successful inaugural conference held in March last year, which gave a perfect platform for Islamic banking institutions to share innovative ideas that have sprouted from their common beliefs.
 Mr. Khairil Anuar Mohd Noor, head of marketing at Emirates Islamic Bank, speaking at the conference.
The conference was inaugurated by the Minister of State for Finance and Industry Dr. Mohammed Khalfan Bin Khirbash. Mr. Khairil Anuar Mohd Noor, head of marketing at Emirates Islamic Bank presented the Bank's innovative Islamic credit card program that gives customers the chance to save their credit card cost by up to 70% compared to other traditional credit cards while maintaining the revered codes of Islamic banking.
He went into the details of these unique card offerings, explaining the benefits of the Blue, Gold and Platinum credit cards. He highlighted their 'riba free' characteristics, where no interests on the outstanding balance and no hidden charges are to be charged to the cardholders. The card allows the cardholders to pay a minimum monthly repayment of 10% of the outstanding balance. Only annual fees are charged on the card which are payable on a quarterly basis.
Speaking on the occasion, Mr. Khairil Anuar said, 'The demand for Shari'a compliant credit cards is growing at a very fast rate. Its numerous features and advantages, especially its interest-free aspects, have proven to be very popular and has even instigated a rush of non-Muslim applicants for the product.'
The conference proved to be an eye-opener in many ways and proved that Islamic retail banking is all set to break into the big league while still successfully maintaining its much-admired principles.
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Posted by: IslamBank on Thursday, December 08, 2005 - 05:02 PM EST (1021 Reads)
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By PUTRI ZANINA
KUALA LUMPUR, MALAYSIA -- TOURISTS who shop, dine and holiday here will enjoy bargains, discounts and privileges with the newly-launched Bank Islam Tourist Friend Card (BITFC).
Card members will enjoy offers including discounts of up to 50 per cent at over 200 participating outlets ranging from restaurants, hotels, shopping centres to places of interest throughout the country.
 “We want to encourage Malaysians to travel and shop domestically. At the same time, Bank Islam is supporting the country’s tourism industry,” says Bank Islam Malaysia Berhad chief operating officer Fazlur Rahman Ebrahim.
The BITFC is a MasterCard co-branded credit facility jointly developed by BIMB, Mastercard International and local marketing consultant S-MarketForce Sdn Bhd. It was launched by Deputy Tourism Minister Datuk Ahmad Zahid Hamidi who says the card can be offered to tourists as part of travel packages and as an alternative to carrying cash for shopping, dining and hotel stays.
He says BIMB should also make the new product available to foreign tourists.
Fazlur said the Syariah-compliant card offers privileges including free takaful coverage, free annual fee for the whole tenure, a competitive profit rate and bonus profit rebate of 0.5 to 2.5 per cent that will be credited directly to the accounts of cardholders who pay on time every month.
BIMB has some 105,000 credit card holders to date and the company hopes to double the number to about 220,000 by June 30, 2006.
Fazlur says the projection is based on the targeted issuance of some 10,000 new cards per month.
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Posted by: IslamBank on Thursday, December 08, 2005 - 04:57 PM EST (844 Reads)
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KUALA LUMPUR, MALAYSIA -- BANK Islam Malaysia Bhd recently launched its Tourist Friend card, which offers special promotions and discounts of up to 50% at over 210 retailers nationwide.
While the card offered shopping, holiday and dining benefits, it was syariah-compliant and attracts no compounded interest, saving holders of the card 1.6% per annum, the bank said in a statement.
Other benefits include free takaful or Islamic insurance coverage, a competitive profit rate and bonus profit rebate of 0.5% to 2.5% credited directly to the accounts of card holders who pay on time every month.
Those interested can apply by sending an SMS by typing: BICCTFNRICNAME, and sending it to DAPAT or 32728.
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Posted by: IslamBank on Monday, December 05, 2005 - 08:18 PM EST (1900 Reads)
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KUALA LUMPUR, MALAYSIA -- PROPERTY financier Malaysia Building Society Bhd (MBSB) expects to sign up 15,000 cardholders for its newly launched Bank Islam-MBSB MasterCard over the next three years, in line with its strategy to provide more Islamic-based products to its retail customers.
“We want to drive across the message that MBSB is innovative, modern and vibrant and ever striving to improve its service and performance,'' said chief executive officer Ahmad Farid Omar.
Speaking after the signing of a Memorandum of Understanding for the MBSB-Bank Islam co-branded MasterCard in Kuala Lumpur yesterday, Ahmad Farid said the card was customised to cater to MBSB customers' needs.
He said MBSB currently had about 70,000 customers. “Every month, we get about 1,000 new customers,” he said.
 Datuk Wan Ismail Wan Yusoh (left) exchanging documents with Ahmad Farid Omar.
Ahmad Farid believes that the company's customers will be excited about the new card, which he said was an alternative to the conventional credit card.
He said MBSB's mortgage customers could now pay their monthly financing instalments with the new credit card, which also offered value-added benefits such as free group family takaful coverage.
Bank Islam Malaysia Bhd general manager for consumer banking group Datuk Wan Ismail Wan Yusoh said cardholders would enjoy “Credit Shield” coverage with group family takaful coverage.
“It translates to an additional savings of 3% per annum to the cardholders,” he said, adding that the feature allowed for the principal cardholders’ outstanding balance or debts to be covered in the event of death and permanent disability.
The card also offers maximum profit rebates of up to 2.5% per year for all prompt paymasters who comply with the terms and conditions set by the bank.
All these benefits and rebates could amount to a total maximum saving of up to 7.1% annually, he added.
Wan Ismail said Bank Islam’s credit card division enjoyed “quite a good profitability'' and that credit card business was one of the bank’s focus areas.
The bank expects to increase the number of cardholders from the present 106,000 to 220,000 by June 2006.
Note: First Published: November 15, 2005.
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Posted by: IslamBank on Monday, December 05, 2005 - 08:10 PM EST (1177 Reads)
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By Tamimi Omar
KUALA LUMPUR, MALAYSIA -- Bank Islam Malaysia Bhd (BIMB) will seek more partners to issue credit cards to capture a greater market share, said its consumer banking general manager Datuk Wan Ismail Wan Yusoh.
He said BIMB was planning a smart partnership for a new community-based credit card for universities for its next launch.
 Bank Islam GM Datuk Wan Ismail Wan Yusoh (2nd left) exchanging documents with MBSB CEO Ahmad Farid Omar at the mou ceremony. Looking on are MBSB GM Shamsudin Md Yusof (right) and Bank Islam Credit Card assistant GM Abdul Rahim Abdul Razak.
“We are planning a smart partnership to offer credit cards aimed at the university community such as the lecturers for our next launch,” he told reporters after the launching of a co-brand credit card with Malaysia Building Society Bhd (MBSB) in Kuala Lumpur on Nov 15.
Wan Ismail said BIMB and MBSB aimed to attract 15,000 credit cards in the next three years, with a projected total income of RM1.5 million for both companies.
He said in meeting stiff competition from other Islamic banks, BIMB would offer better deals for customers such as free group Takaful coverage, no compound interest, annual fee waiver and competitive withdrawal fee.
Wan Ismail said this was part of BIMB’s plan to increase its credit card base to 220,000 cardholders by June next year from 106,000 currently.
Note: First Published: November 15, 2005
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Posted by: IslamBank on Sunday, November 27, 2005 - 03:04 PM EST (1143 Reads)
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KUALA LUMPUR, MALAYSIA -- Bank Islam has recently launched its Syariah-compliant Tourist Friend card, which offers special promotions and discounts of up to 50% at over 210 retailers nationwide.
In a statement on Nov 7, Bank Islam said the card attracted no compounded interest, saving cardholders 1.6% per annum.
 Bank Islam's Syariah-compliant Tourist Friend card attracts no compounded interest.
It also offers other benefits such as free takaful (insurance) coverage, free annual fee for the whole tenure, a competitive profit rate and bonus profit rebate of 0.5% to 2.5% credited directly to the accounts of cardholders who pay on time every month.
Through the card, the bank also provides for lower balance transfer of RM6.20 per request plus 20 days grace period with 0% profit charge.
Bank Islam said shopping on the bank’s easy payment scheme attracted up to 12 months with 0% on profit charges.
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Posted by: IslamBank on Sunday, November 27, 2005 - 02:59 PM EST (549 Reads)
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KUALA LUMPUR, MALAYSIA -- Bank Islam recently launched its Tourist Friend card, which offers special promotions and discounts of up to 50 percent at over 210 retailers nationwide.
While the card offers exciting shopping, holiday and dining opportunities, it is Shariah-compliant and attracts no compounded interest, saving holders of the card 1.6 percent per annum, the bank said in a statement here Monday.
Other benefits for the card holders include free takaful or Islamic insurance coverage, a competitive profit rate and bonus profit rebate of 0.5 percent to 2.5 percent credited directly to the accounts of card holders who pay on time every month.
Bank Islam said that the new Tourist Friend Card also gave competitive cash withdrawals of RM12 for every RM1,000 or part thereof performed at Bank Islam's ATM.
Through the card, the bank also provides for lower balance transfer of RM6.20 per request plus 20 days grace period with 0 percent profit charge.
Those interested in the card may apply by sending an SMS text message by typing: BICCTFNRICNAME, and send to DAPAT or 32728.
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Posted by: IslamBank on Saturday, November 26, 2005 - 03:22 PM EST (630 Reads)
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KUALA LUMPUR, MALAYSIA -- Bank Islam Malaysia Bhd, which recently launched its "Tourist Friend" MasterCard to take advantage of the growth in domestic travel, expects the number of its cardholders to grow to 220,000 by June 30, 2006 from 105,000 now.
The bank said on Oct 27 the card offered discounts and price reductions of up to 50% at over 210 hotels, restaurants and shopping outlets nationwide.
“There has been a steady increase in domestic travel over the past five years, coinciding with civil servants and bank staff being given alternate Saturdays off,” said the bank's managaging director Datuk Noorazman Aziz.
“When the civil service went fully five-day week in July, they have had more time for travel and the leisure business saw a bigger share of their wallets," he said in a statement. The card was launched on Oct 17.
He said the additional leisure time boosted domestic travel by some 30% and the multiplier effect from the five-day week implemented in July resulted in over 1.2 million local tourists travelling around Malaysia.
Noorazam said more Malaysians were participating in "city stays", with travel agencies offering weekend discounts of at least 30% on air travel, hotel and city tours of Kuala Lumpur, Penang and Johor Bharu.
The move fills gaps in lower occupancy experienced by city hotels on weekends when business travel winds down and resorts giving promotions for non-peak weekends.
He said the Bank Islam Tourist Friend Card gave consumers the option of enjoying travel, dining and entertaining at massive discounts.
“The card also offers other benefits such as free takaful insurance coverage, free annual fee for the whole tenure, a competitive profit rate and bonus profit rebate of 0.5% to 2.5% credited directly to the accounts of cardholders who pay on time every month.”
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Posted by: IslamBank on Monday, November 07, 2005 - 04:07 PM EST (596 Reads)
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KUALA LUMPUR, MALAYSIA -- Bank Islam Malaysia Bhd hoped that its latest credit card "Bank Islam Tourist Friend Care" (BITFC) would assist the bank in achieving its aim of 220,000 credit cardholders by the financial year ending June 30, 2006, said its chief operating officer Fazlur Rahman Ebrahim.
"The introduction of this card is one of the efforts taken to increase Bank Islam's credit cardholders. Currently, there are 105,000 holders and we target to increase it to 220,000 by financial year ending June 30, 2006," he told reporters after the launch of the card by Deputy Tourism Minister Datuk Ahmad Zahid Hamidi, here Monday.
BITFC is especially designed for Bank Islam with the cooperation of MasterCard International and S-MarkerForce Sdn Bhd to encourage domestic tourism among the locals.
The holder of the card can benefit from various bargains and attractive discounts of up to 50 percent at more than 210 participating merchants, including hotels, shops and restaurants nationwide.
Fazlur Rahman said that other benefits included free takaful coverage, free annual fee for the whole tenure, a competitive profit rate and bonus profit rebate of 0.5 percent to 2.5 percent that will be credited directly to the accounts of cardholders who pay on time every month.
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Posted by: IslamBank on Sunday, April 17, 2005 - 07:58 PM EST (595 Reads)
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ABU DHABI, UNITED ARAB EMIRATES -- VISA branded cardholders can visit any of the ADIB ATMs across the UAE and withdraw cash from their card account.
ADIB has recently certified with VISA to provide this facility to VISA cardholders.
ADIB official said that it currently has a network of 29 ATMs and is planning to expand it further to strategic locations in the coming months.
The growing number and use of the payment cards in the UAE warrant more convenient points of acceptance for ADIB’s customers.
ADIB launched their “VISA Covered Card” last year in July.
This is a payment card accepted all over the world at POS and ATMs and has the facility for the customer to revolve the outstanding / used balance and partial payments.
ADIB’s “VISA Covered Card” has an up to 55 days grace period for payment.
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Posted by: IslamBank on Friday, April 08, 2005 - 08:09 PM EST (1307 Reads)
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By DAVID TAN
PENANG, MALAYSIA -- THE AmBank group is introducing two new products - cash line and loan structure programmes - to its range of Islamic banking services in the second-half of this year, said AmBank Bhd senior general manager Ahmad Zaini Othman.
“The cash line programme is similar to an overdraft. However, it can be tied in with the Al-Taslif credit card or be used as a stand-alone credit line.
“The loan programme’s unique feature is its variable rate structure which allows customers to repay the loan according to their earning capacity,” he said, adding that the variable rate structure had received Bank Negara approval.
Zaini was speaking after presenting a total of RM35,223.80 contributed by Al-Taslif cardholders to charity organisations on the island.
 AmBank Bhd senior general manager Ahmad Zaini Othman
Penang Deputy Chief Minister Datuk Abdul Rashid Abdullah witnessed the event.
Zaini said AmBank’s Al-Taslif credit cardholders currently stood at 200,000.
“The Al-Taslif credit card was launched in 1997. In 2000, the card underwent a re-branding exercise and since then, the number of its members has grown by 20% to 25% per month,” he said.
Zaini said AmBank would use its 180 branches nationwide and their sales teams to aggressively market the Al-Taslif credit card this year.
The AmBank group was the first to launch an Islamic credit card in the Asia-Pacific.
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Posted by: IslamBank on Thursday, April 07, 2005 - 06:45 AM EST (1348 Reads)
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By Opalyn Mok
KUALA LUMPUR, MALAYSIA -- AmBank Group is expected to release two new products under its Islamic banking section in the second half of the year, says its Islamic Banking head and senior general manager Ahmad Zaini Othman.
He said it hoped to release a cash-line product in the market after July. "This product is equivalent to the conventional overdraft and it could be tied in with the Al-Taslif credit card or it can also stand alone," he said.
He said Ambank was now doing some system testing before it the product is launched.
Another product in the pipeline is a loan programme based on the 'Ijarah' concept, which is mainly targeted at small-medium entreprises and consumers interested in commercial activities.
Ahmad said the product was different from the other Islamic loan programmes currently in the market as it offered more repayment flexibility.
"This programme offers a variable interest rate structure which allows borrowers to pay back the loan according to their capacity," he said, adding that current Islamic loan programmes in the market only offered fixed rates.
Earlier, Ahmad said the bank was the first to launch an Islamic credit card in the region in its Al-Taslif credit card in 1997.
"We started to aggresively market the card in 2000 and the product has shown a growth rate of up to 25% annually since then," he said.
When presenting contributions through the bank's Al-Taslif cardholders' share and care programme, Ahmad said the programme was launched last November and had resulted in a total of RM105,671 being distributed to three charitable organisations in Kuala Lumpur.
"In December, we distributed RM35,223 to two organisations in Sarawak and in January, RM140,895 to 15 organisations is six different states and today, Rumah Kanak-kanak Taman Bakti and Spastic Children Association of Penang will receive RM35,223," he said.
Ahmad said the funds, totalling RM352,238, were contributed by about 100,000 Al-Taslif card members through the card's AmBonus feature.
Penang Deputy Chief Minister Datuk Abdul Rashid Abdullah, who was present at the presentation, urged more corporations and financial institutions to follow in the footsteps of Ambank Group by coming up with similar programmes to contribute to charitable organisations.
Note: I wonder how many 'Islamic Credit Cards' in total exist at this very moment...InshAllah, I'll do a tally and blog it here...
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Posted by: IslamBank on Saturday, April 02, 2005 - 05:25 AM EST (715 Reads)
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By Habib Battah
BEIRUT, LEBANON -- Visa's man for the Levant region admits that many of his colleagues in the financial industry were taken aback to find he was once a professional basketball player. Those same colleagues may have gone into temporary shock when they realized the man who led a regional revolution in the Automatic Teller Machine industry was also a former minister in the Jordanian government.
 "Many of my colleagues didn't know how much I was involved in sports until I was appointed minister," said Said Shuqom, Visa general manager for Jordan, Lebanon, Syria and, soon, Iraq.
"They were surprised because I never mentioned sports during work."
Long before falling in love with the card business - as he puts it - Shuqom was shooting hoops for the Jordanian national basketball team in the 1976 Pan Arab championship.
"I was the tallest playmaker in the world," he says laughing. Measuring in at just under two meters, Shuqom says he may have been a bit tall to be racing down the court to pick up a rebound, but hard work and improvisation were two skills that would take him a long way in his business career.
"Usually people in the playmaker position were very short, around 160 centimeters - for the balance and the dribbling skills - but I was good at that, and I was a good shooter; so I also took advantage of my height," he reminisces with a chuckle.
In the finance world, Shuqom is known to have spearheaded the Visa breakthrough in the Levant region, shortly after scoring an arduous feat by convincing Jordanian banks to work together to boost ATM performance.
In his early years though, Shuqom was dribbling and juggling his way through university studies, basketball and the Royal Jordanian Air Force. He says he was always able to separate the different fields, but looking back, it was the combination of the three skills and healthy dose of serendipity that got him where he is today.
A management major in college, Shuqom joined the Royal Air Force in the early 1970s: "I was one of their early guys trained on the computer side," he explains. By the mid 1980s he was using the IT skills he acquired to introduce automation technologies - namely ATMs - to the Jordanian banking system. After years of dedication and some careful persuasion, Shuqom helped form the Jordan Payment Services Company, pooling otherwise disparate resources to achieve a pivotal development for growth in the relatively small Jordanian market.
"I was able to talk to banks and convince them that establishing one company to handle their technical issues - and become partners in it - would be more rational than doing it separately and alone," he says.
"I told them look you can deploy 50 machines now, what about covering the whole country? You can do it only if you come and join in this unit," he adds.
Shuqom says in 1991, he was finally able to get a range of banks on board, both large and small, by creating a memorandum of understanding that somehow superceded the conglomeration's articles of association, which dictate companies be treated equally under Jordanian law.
This means that if there were five board members, each would have an equal vote, Shuqom explains, "but in business and reality, some banks have more interest in developing the business than other banks. So I allowed bigger banks to benefit from the way we split revenues so that everybody had an interest to see the company flourishing - so they didn't see the company as slowing down their business if they are ambitious, and so that the smaller banks felt they would benefit without investing a lot. It was not compromise; I would rather think it was a smart MOU rather than a compromise," he says smiling.
"It was a great challenge because I worked since 1989 toward that - it didn't happen over night," he adds.
However, Shuqom is not sure if other stages of his career came together more by chance.
In the late 1990s, he found himself working on similar automation technologies with the municipal government of the Jordanian capital. By coincidence, he says, the mayor of Amman became the Jordanian prime minster in 1999, and subsequently appointed Shuqom sports minister that year.
"He knew about my involvement in sports and my achievements also, and the way I think so ... you know it built up nicely for that," he says with an outburst of laughter. "I cannot say whether it was pure luck or something that went in the right direction."
Shuqom stayed in the post for two years, but says he later came to realize that politics was a bit rougher than he expected. In 2001, he was asked to lead Visa's new localization strategy in the region, setting up the area headquarters in Amman, "because it was my hometown. If I were Lebanese it could have been in Lebanon."
Shuqom was recently in Beirut to tout 2004 results, namely a 32 percent rise in local Visa usage with Lebanese members spending $300 million in 2.3 million transactions last year.
He claims there is still room for growth in the region; in Jordan where usage is also growing above 30 percent; in Syria, which remains underdeveloped; in Iraq, where cards are expected to be issued for the first time in coming months, and even in Lebanon, despite political turmoil.
Visa was anticipating "flourishing" growth here, but Shuqom says he is still hopeful in the wake of the "great loss" of former Prime Minister Rafik Hariri, who was assassinated last month.
"I have this nice feeling about the Lebanese in general, that they can overcome the difficulties. They have the commercial sense and they have the business sense, they know about the opportunities that can be taken for future growth," he says.
"I am very much optimistic about Lebanon and I hope the Lebanese will take advantage of their potential."
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Posted by: IslamBank on Saturday, April 02, 2005 - 01:14 AM EST (1288 Reads)
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ABU DHABI, UNITED ARAB EMIRATES -- Diners Club International, providers of the world's first all-purpose charge card, has entered into an agreement with the National Bank of Abu Dhabi (NBAD) to increase access for Diners Club cardholders in the UAE.
 Pictured here from left to right: Mr. Khalid Deemas, Head of Retail Banking,NBAD, Mr. Farman Ali, Senior Manager Card Centre, NBAD, Mr. Ahmed Al Salhi, Manager Acquiring Busines, NBAD, Mr. Louis Scotto, Chairman, Diners Club UAE, Mr. Ramkumar Chari, Senior Manager, Network International and Mr. John Tully, Head of Cards, Emirates Bank.
The tie up allows Diners Club cardholders to use their cards at more shops and retail outlets through point-of-sale terminals distributed by the bank.
Diners Club has recently signed similar agreements with the National Bank of Dubai and Mashreq Bank.
The latest deal between NBAD and Diners Club is part of Diners Club's mission to offer its customers enhanced services through raising acceptance levels at points of sale terminals in the UAE.
Louis Scotto, Chairman of Diners Club UAE, said: 'Diners Club has always maintained its excellent reputation by offering cardholders the highest standards of service and demonstrating commitment to constant improvement. The agreement with NBAD is great news for all our cardholders.'
Satisfying the needs of both the local and international traveller, Diners Club prides itself on having a comprehensive network of quality business partners including major hotels, car hire companies, restaurants, travel agencies and selected retail outlets.
Diners Club is recognised and welcomed by millions of establishments worldwide, and has been operating in the UAE since 1976 as a member of The Emirates Bank Group.
Commenting on the agreement, Khalid Deemas, Head of Retail Banking, NBAD, said: 'The National Bank of Abu Dhabi has one of the largest point-of-sale networks in the UAE, accepting transactions from all major cards. The adoption of Diners Club into the network allows cardholders the flexibility to purchase and use Diners Club facilities at NBAD merchants throughout the UAE. It will help further strengthen our relationship with retailers in keeping with our motto - keeping the customer at the heart of the business.'
Deemas added: 'We are pleased to have Diners Club on board and look forward to a mutually beneficial relationship.'
Note: Diners Club was never a 'Credit' Card. It began life as a 'Charge' Card. Whether it remains so in the coming non-duality VISA/AMEX/MasterCard/Discover anti-trust'd environment is something to watch for...at least for those of us, okay, ME, that are fascinated by Islamic Credit at al. Cards...
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Posted by: IslamBank on Monday, March 28, 2005 - 07:31 PM EST (651 Reads)
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KUALA LUMPUR, MALAYSIA -- BANK Islam Malaysia Bhd (BIMB) is banking on its newly launched MasterCard SecureCode to increase the number of its cardholders to 110,000 by June this year, up from the current 80,000.
BIMB and MasterCard yesterday launched South-East Asia’s first MasterCard SecureCode for both issuing and acquiring purposes, providing payment card users and merchants additional protection and security when making online transactions.
“Besides increasing cardholders, we are also looking for higher utilisation of transactions over the Internet,” BIMB consumer banking general manager, Wan Ismail Wan Yusoh, told reporters after the launch in Kuala Lumpur.
He said the bank, with 88 branches at present, planned to open five more by year-end.
“For BIMB, we have to go for the mass market, namely through IT (information technology) innovation. We need Internet banking,” he added.
Asked about the Islamic banking licences being given out to other banks, Ismail said BIMB regarded this as a challenge.
“This is a very positive move. In fact, it is our way forward to have better business growth and opportunities,” he said.
With the coming of foreign Islamic banks, Ismail expects an integration of various Islamic banking models, both local and foreign, thus making Islamic banking more mature in facing future challenges.
BIMB is among the three Islamic banks in Malaysia, together with Bank Muamalat and RHB Islamic Bank Bhd.
Almost all conventional banking institutions generally provide Islamic banking products and services at their windows or full-fledged branches.
Meanwhile, MasterCard International vice-president and senior country manager Jim Cheah, said BIMB was the first bank it was working with on SecureCode.
He said in time there would be other banks using SecureCode, but declined to mention their names.
MasterCard Gateway Services vice-president (sales and marketing) Mark Patrick said the Internet and e-commerce last year represented about 8% of the MasterCard transaction volume, up from 6% a year earlier.
This year, MasterCard Internet transactions were expected to increase to about 9%, he said.
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Posted by: IslamBank on Thursday, March 17, 2005 - 08:46 PM EST (937 Reads)
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KARACHI, PAKISTAN -- National Bank of Pakistan (NBP) Syed Ali Raza Raza said debit card facility has grown tremendously all over the world including Pakistan compared to credit cards due to its cost efficient nature.
 Speaking at the launching of its e-banking debit-cum-ATM card "NBP Cash Card" here Thursday, he said, "NBP debit and ATM card were the only free of cost cards in the country."
He said debit plus ATM card was all purpose card which can be used by NBP customers for cash withdrawal at over 700 places and for making payment for purchase at more than 5500 locations of Orix debit card point of sales at hotels, restaurants, shopping centres and fuel stations within four cities including Karachi, Lahore, Islamabad and Rawalpindi.
The number of locations for customers will be enhanced to 10,000 in next one year and few months and by June 2006, 12 more cities will be included in the network enabling each NBP customer to use this facility.
Note: Only five years ago there were less than 5,000 credit cards issued in the entire country of Pakistan...a nation that will shortly have a greater population that Western Europe...provided Pakistan remains intact of course, but that's another story.
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Posted by: IslamBank on Thursday, March 17, 2005 - 01:23 AM EST (635 Reads)
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TEHRAN, IRAN -- A banking expert said on Tuesday the time is not ripe for Iranian banks to enter into competition with foreign banks, stressing that the establishment of international banks in Iran could harm the national banking system.
Ali Hassan-Zadeh, deputy head of the Central Bank of Iran (CBI)’s Monetary Research Center, told ILNA that national banks would not be able to compete with international banks because of the huge differences between the inflation and profit rates in Iran and in other countries.
He said that the national banking system could not endure the pressures exerted by the possible presence and operations of foreign banks on the mainland, stressing that the initiative has to be tried first in the free trade zones.
“It is not logical to put the banking system under further pressures at this point,“ he said, adding, however, that the national monetary market would inevitably have to create grounds for the presence of foreign banks in the country as part of efforts to join the World Trade Organization.
Hassan-Zadeh’s remarks come a few weeks after it was announced that several agreements have been reached between Iran and some French banks to create an international credit card system in Iran.
Iranian banking system has been unable to issue international credit cards in recent years due chiefly to the US sanctions and the vast differences between Islamic banking principles and those of other countries.
Conservative lawmakers believe that given the Iranian citizens’ growing interaction with the international community and the need for promoting tourism, limited involvement of foreign banks in the national economy would help the economic development drive.
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Posted by: IslamBank on Wednesday, March 16, 2005 - 11:20 AM EST (552 Reads)
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KUALA LUMPUR, MALAYSIA -- The world's second-largest bank, HSBC, plans to join Malaysia's biggest network of cash machines, easing the handicap of a limited branch network, the head of the bank's Malaysian business said on March 15.
HSBC has just 36 branches in Malaysia, a country of about 25 million people, and says it has aggressive plans to grow its consumer business, but it and all other foreign banks are restricted from developing their own branch networks.
"We are going to be joining MEPS," HSBC Bank Malaysia chief executive Zarir Cama told Reuters, referring to Malaysian Electronic Payment System Sdn Bhd.
MEPS has a network of more than 4,000 cash or automated teller machines, which is open to all 10 main local banks.
The agreement covered interbank payments through MEPS initially and HSBC saw this as a first step to gaining access to the network's cash machines, an HSBC spokeswoman said.
Other foreign banks in Malaysia include Citibank, Standard Chartered, United Overseas Bank and OCBC Bank.
"There was an issue between the foreign banks and MEPS in terms of some of the costs that were called for," Cama said.
"They were quite onerous and we have now come to an agreement in the last few months."
Note: This ain't exactly an 'Islamic Credit Card' news item, but I don't quite feel like creating ANOTHER long overdue topic category...Maybe ATM'S and EFT-POS would make sense here with this one, nyahhh...I've been up all night TRYING to catch on my long overdue 'The Big Update' as I call it to myself, and in my sleep deprived state, listening to RUSH streaming over my highspeed connection from CBC radio one in Toronto to here in the San Francisco Bay Area, I just think I'll 'park' this news item in the Islamic Credit Card category. so there. :-p
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Posted by: IslamBank on Wednesday, March 16, 2005 - 08:51 AM EST (623 Reads)
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TEHRAN, IRAN -- Iranian nationals can soon use their ATM cards in some of the Persian Gulf littoral states’ banks, said deputy governor of Central Bank of Iran (CBI).
Alireza Shirani told Fars News Agency that the CBI has reached agreements with United Arab Emirates (UAE) and Bahrain to link the cash machine systems of the two Persian Gulf countries to that of Iran.
The official further noted that talks will be held with Saudi Arabia next month on providing the same facilities.
He added that the ATM systems of all Iranian banks, excluding Bank Refah and Bank Maskan, are connected to each other through the Shetab system.
CBI announced earlier it welcomes the establishment of foreign banks in Iran, stressing that an international bank would soon open its branch in the country.
Experts say greater banking cooperation with other countries, including the establishment of foreign banks in Iran, could help improve foreign investments and create jobs.
But the constant problem remains to be that the CBI believes the activities of foreign banks in Iran would have to be in compliance with the national banking system.
Note: Using your Islamic Credit Card everywhere you want to be? Priceless.
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Posted by: IslamBank on Friday, March 04, 2005 - 02:40 PM EST (580 Reads)
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By Govinda Shil
DHAKA, BANGLADESH -- Six Islamic commercial banks are planning to jointly launch a credit card soon to tap the business potentials of the plastic money.
A group of Islamic bankers will join a Global Islami Banking Conference in Singapore next month when they might discuss about a mechanism being widely followed in Islamic banking to substitute "interest," which is a taboo in Islam.
The banks have sent the proposal to their respective Shariah Councils to examine whether the idea of credit card conflicts with Islamic laws.
The "Central Shariah Board for Islami banks in Bangladesh" will sit within 15 days to find out ways to translate the idea into actions, Shamsul Huda, a Shariah Councilor of Islami Bank said.
"We are positively thinking to launch a credit card," Huda added.
The managing director of the Islami Bank, Bangladesh Ltd, Abdur Raquib, said a consultative forum of the Islami banks proposed the idea two months ago.
"Our approach is positive…but we need more time to implement it," Raquib added.
The other Banks, which would join the Islamic banks are: Oriental Bank, Exim Bank, Shahjalal Bank, Social Investment Bank and Al-Arafah Bank.
Oriental Bank
Exim Bank
Shahjalal Bank
Social Investment Bank and
Al-Arafah Bank.
The Islami Bank senior officials discussed last week about how to "Islamise" the credit card business in the country.
A top official of the Oriental Bank said the Islami bankers of the country are interested to launch the Islamic credit card which is being used in many predominantly Muslim countries.
'We have seen an Islami credit card working in Saudi Arabia, Bahrain, Malaysia and Indonesia," the official said adding Bangladesh's top Islami banks have received proposals for technical support to launch such money-lending mechanism from India and many other countries.
"There is tremendous market potentialities of Islami credit card…millions of people would use it in Bangladesh," Huda said.
He said it was hard for Islami banks to keep them isolated from global competitions rather than adopting the credit card idea.
Several banks have already floated credit cards and that the total number would not be less than 200,000 across Bangladesh.
"The idea is that these Islami banks would lend money through a credit card which they are already doing through their normal lending operations," said AM Kajemi, a deputy governor of Bangladesh Bank.
Kajemi said Islami Banks in the country have borrowed their operational ideas from normal Banks and have given an Islamic shape.
"Islami Bank is thriving now…that's why many of the foreign banks also want to carry out Islamic Banking," he added.
Note: This may end up as the embryonic organization which answers the business model of the VISA/MasterCard Credit Card duopoly's not-for-private-profit (i.e. they pay no taxes) Card associations based on Dee Ward Hock's Chaordic principles of organization... sigh... I need to get back into Islamic Banking and Islamic Credit CArding...I used to evangelize about my shariah compliant credit card models since back in 1986 onwards, then got tired of not getting anywhere with it. Now, here are SIX Islamic Banks getting together to work out a settlement platform. Wish I could join and make it seven...
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Posted by: IslamBank on Monday, February 21, 2005 - 02:36 AM EST (747 Reads)
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ISTANBUL, TURKEY -- Kuveyt Türk ‘Siz Card’ adını verdiği faizsiz kredi kartını tanıttı. Harcamaların ve tahsilatların dolar cinsinden yapıldığı Siz Card 100 dolar ve 200 dolarlık kart ücreti karşılığında verilecek 100 dolar kart ücreti ödenerek satın alınan kart ile aylık 1000 dolar, 200 dolar ödenerek alınan kart ile de aylık 2.000 dolar harcama yapılacak.
 Kuveyt Türk tarafından Siz Card’ın tanıtımı için düzenlenen basın toplantısına katılan Kuveyt Türk Genel Müdür Yardımcısı Halid El Roby, ‘Amacımız, Türk kredi kartı kullanıcılarını gecikme faizi baskısından kurtarmaktır’ dedi.
‘Siz Kredi Kartı’nın daha önce Türkiye’de denenmemiş özgün bir hizmet olduğunu belirten Roby, yeni kredi kartı konusunda şu bilgileri verdi:
‘Yeni kredi kartımız dolar kuru üzerinden çalışıyor. Harcamalar, harcama yapılan tarih esas alınarak dolar kuruna çevriliyor. Tahsilatlar da dolar kuru üzerinden yapılıyor. Harcama tutarının yüzde 25’ini ödeyen, bir sonraki ay ödediği miktar kadar harcama yapabiliyor. Geri ödeme yapmayanların kartları kapatılıyor ve 4 ay içinde geri ödeme olmazsa kartları ellerinden alınıyor.’
Roby, bütün alışverişlerde faizsiz 4 taksit olanağı sağlayan Siz Card’ın kullanıcılarının kart ile fatura ödemelerini de yapabileceklerini bildirdi.
‘Bin dolarlık limit için 100 dolar kart ücreti yüksek değilmi. Böylece siz faizi baştan almış olmuyormusunuz?’ sorusuna Roby şu yanıtı verdi:
‘Aldığımız kart ücreti kesinlikle bir faiz gibi algılanmamalıdır. Bu bir kulüp üyeliği gibi algılanmalıdır. Siz Card’la sağladığımız olanaklar, diğer bankaların sağladığı olanaklarla karşılaştırıldığında kart ücretinin yüksek olmadığı anlaşılacaktır.’
Note: First published online on 11.09.2004 in Turkish Language. I have no idea what the article is saying. I gather it is an announcement for the 'Siz Card', an Islamic Credit Card based in Turkey. It's moments like this when I wonder about my ex fiance, who was turkish, and wonder whether things had been different, would I be able to fully read and understand this news item? Aw well...next...
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Posted by: IslamBank on Monday, February 21, 2005 - 02:24 AM EST (624 Reads)
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ISTANBUL, TURKEY -- $1 million worth in prizes expected to win new customers for interest-free credit card.
Interest-free finance institution Kuveyt Türk has announced that it is planning to distribute $1 million worth of prizes as part of promotion efforts behind its new credit card, Siz Card.
At a news conference in Istanbul on Tuesday, Khaled El Rody, Kuveyt Türk's assistant general manager in charge of retail banking, said the campaign will continue throughout the year.
The prizes slated to be awarded during the campaign include four Mercedes-Benz C 180s, four Toyota Avensis 1.6 Terras, 200 HP notebooks, 200 Panasonic NV-GS, 15 video cameras, 400 HP Photosmart R 707 digital cameras and 800 LG G 5600 cell phones.
Kuveyt Türk's Siz Card was introduced last September.
Kuveyt Türk doesn't charge interest on Siz Card bills.
Kuveyt Türk is a special finance house established in 1989 that has 35 branches in Turkey.
Shareholders include the Kuwait Finance House, the Kuwait Social Security Institution, the Islamic Development Bank and the General Directorate of Associations Turkey.
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Posted by: IslamBank on Monday, February 14, 2005 - 04:15 PM EST (748 Reads)
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PRESS RELEASE
Published: 25 January 2005 -- Card Tech Limited (CTL), a UK-based leader in the global payments industry, has again implemented its PRIME card and merchant management solution as the platform for a successful Shari'a card programme.
This most recent implementation took place in the United Arab Emirates, at Abu Dhabi Islamic Bank (ADIB).
Abu Dhabi Islamic Bank is a growing institution. It has built a leading portfolio of Islamic banking products, including card programmes built on PRIME, according to the exacting standards of its Shari'a Committee.
The bank's PRIME solution currently contains the core PRIME card management features; modules for building loyalty programmes, for scoring applications and for managing collections; plus CTL's ONLINE authorisation and switching engine and the NCRYPT key management tool. ADIB has additional options for expanding its portfolio with functionality from PRIME.
ADIB's acting Chief Executive Officer, Mr. Abdul Aziz Al Mehairi, said, "Abu Dhabi Islamic Bank is one of the major financial institutions in the region, established in 1998 with the objective to tailor solutions to meet all the needs of customers in a transparent manner with Shari'a compliant products."
He said, "Payment cards are a necessity and Abu Dhabi Islamic Bank, after years of research, came up with a unique payment card product, 'The Covered Card', offered in VISA Classic, Gold and Platinum. This is a payment card where the customer can revolve the balance and pay in instalments - up to 55 days of grace period for payment. The Covered Card further provides 'Takaful' (an Islamic insurance) on travel, and 'Purchase Protection'. We intend to load the card with additional benefits to the customers in the coming months."
"The mechanism of our Covered Card posed a challenge for the card processing systems," said Mr. Al Mehairi.
"We spent a considerable time assessing payment card system providers that would meet the current and future requirements of our unique payment card product. We are very pleased to have chosen CTL, which is a global payment card system solutions provider with a proven track record. We intend to expand our card business in many ways in this competitive market, including chip-enabled products, and CTL has the ability to provide ADIB with these solutions."
"Fast, reliable and superior service and comprehensive products for customers are the focal point of Abu Dhabi Islamic Bank," continued Mr. Al Mehairi.
"We have partnered with CTL to achieve these key business objectives, as far as the current and future plans of ADIB in the payment card world are concerned."
Note: Yeah, but it's still plugged into the Current credit cartel duopoly of Visa/MasterCard, where one can purchase non-shariah compliant products in non-shariah compliant venues. Open up the yellow pages, okay, no one uses the Yellow Pages anymore, but open it up and look on page one. One may get an abortion and use their Visa/MasterCard to pay for it. In Installments too.
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Posted by: IslamBank on Thursday, February 19, 2004 - 02:17 PM EST (719 Reads)
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By Maya Salleh & Azlan Jaini
BRUNEI, DARUSSALAM -- His Royal Highness the Crown Prince Pengiran Muda Hj Al-Muhtadee Billah yesterday consented to officiate the launch of the first Syar'iah compliant credit cards in Brunei Darussalam, IDBB Mastercard 'Kad Emas' and 'Kad Klasik'. The launch took place at Jerudong Park Country Club.
Accompanying His Royal Highness the Crown Prince were other members of the royal family.
The Chairman of IDBB, Pehin Orang Kaya Wangsa Dato Paduka Seri Laila Jasa Awg Hj Ahmad Wally Skinner, pointed out in his opening address that IDBB realises that there exists stiff competition in the global banking market. Therefore, he said, IDBB should face such challenges aggressively with a strong competitive edge.
With the launching of the IDBB credit cards, the bank would become a pioneer in Islamic cards in the country, he said. IDBB aims to attract at least 30 per cent of the credit card market in Brunei Darussalam.
The Chairman of IDBB disclosed that the credit cards - 'Kad Emas' and 'Kad Klasik' - have been tested for their efficiency, security and control. The bank has been undertaking this internal project since December last year.
IDBB has invested millions of dollars into the project, he said, adding that it also involved non-monetary investments such as years of planning and research, meetings of minds involving the bank's Syar'iah Advisory Body, Board of Directors as well as staff of IDBB.
The Chairman of IDBB thanked the Ministry of Finance for approving IDBB credit cards, adding that all this would not have been possible without the support and cooperation of Mastercard International Inc.
"Owning a credit card today is not an uncommon sight as some people view it as a status symbol stating that they have succeeded, while others see it as a convenience, which would allow one to travel 'cashless'," he said. In this respect, the Chairman of IDBB strongly believed that credit cards issued by IDBB are capable of fulfilling the requirements of the public.
More than 500 invited guests, comprising of local dignitaries, members of the advisory body and board of directors of IDBB and Takaful Bank Pembangunan Islam Sdn Bhd, Ministers and Deputy Ministers, Permanent Secretaries, Ambassadors, Business Associations, entrepreneurs and selected account holders of IDBB, attended the launch.
The Chairman of IDBB also highlighted the unique features of IDBB credit cards. The credit cards of IDBB are interest free complying to the Syar'iah principles. The credit cards are also equipped with 'M/Chip' Mastercard technology which promote security, thus evading fraud and skimming.
On top of security, the cards are also equipped with Mastercard 'Merchant Category Code' or MCC - a device which possesses high capabilities including protecting the credit cards from being used in non-Islamic or non-halal business transactions. This is a special trait as it can 'erase' Muslims' doubtfulness in performing their transactions.
Another unique feature of the credit cards is that they are based on the principles of Syar'iah Al-Kafalah Bil Mal meaning 'guarantee' and Al-Wakalah Bil Ujrah meaning 'agency's concept'.
IDBB credit cards are recognised and accepted by more than 32 million traders worldwide. In addition to this, cardholders have access to immediate cash at more than 900,000 Mastercard and Cirrus ATM machines. To complement the credit cards, IDBB is also providing quality customer service 24 hours a day, seven days a week and customers may contact the toll free hotline number.
As an introductory offer, IDBB is offering an annual fee waiver to all applicants whose applications are approved within the first month of the launch.
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Posted by: IslamBank on Tuesday, July 29, 2003 - 08:22 PM EST (1044 Reads)
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From Banker Middle East
DUBAI, UNITED ARAB EMIRATES -- At first glance you'd be forgiven for thinking that a marketing brochure for an Islamic credit card must be some kind of elaborate hoax. But banks in the region are now making such seemingly impossible concepts a reality.
At first glance you'd be forgiven for thinking that a marketing brochure for an Islamic credit card must be some kind of elaborate hoax. But banks in the region are now making such seemingly impossible concepts a reality
We all know the arguments in favour of credit cards:
“it enables me to spread payment for large purchases;”
“it’s too dangerous to carry cash;”
“sometimes a card is a prerequisite for transactions such as Internet purchases and rental collateral”.
The problem for Muslim consumers, of course, is that the whole concept of the conventional credit card is unacceptable on religious grounds.
Interest payments made when the outstanding balance is not repaid in full are Riba payments, and therefore forbidden in Islam.
Despite this clear-cut position, there are various grey areas of interpretation that enable some Muslims to align credit card usage with their religious beliefs.
For example, if one commits to paying off the balance every month and therefore never utilise the credit option of the card, then one can say that Riba is being is avoided and thus the card is Halal.
As Islamic scholars such as Shariffa Carlo Al Andalusia have discussed when debating such interpretations, however, this argument still doesn’t hold water since the signing of a credit card agreement is the signing of an agreement to pay Riba should the cardholder fail to make every repayment in full and on time.
Since no human can either know what the future holds or guarantee their own infallibility, such scholars say, then Muslims cannot enter into any contract that promises that they can.
From the card issuer’s point of view, therefore, several problems become instantly obvious.
Not only will the bank make little or no revenue from a credit card if the balance is repaid in full, but in religious terms it will be colluding in the commitment of sin if it arranges and signs a contract wherein a Muslim agrees to pay Riba in the case of non-payment of the balance.
Quite apart from that, the extension of credit with a view to making profit is not a Qard Hassan loan and is thus as unacceptable in religious terms for the creditor as well as the borrower.
Despite this daunting and complex problem, banks have tallied up the market of some 250 million Muslims in MENA and Asia who want and need financing options, and several have decided that this is an opportunity too great to pass up on.
Some banks have reacted to this situation by offering credit cards that aren’t credit cards at all in a conventional sense.
The Dubai Islamic Bank, as just one example, offers a Visa Classic Card but then debits the balance automatically from the holder’s current or savings account every month.
In effect this is a debit card, as officially no credit is extended to the consumer and so no injunctions against Riba have been broken.
The consumer may get a short-term loan in practice, for example if he purchases an item at the beginning of the month and the payment is not debited until the end of the month, but that is a matter of bank administration rather than any contract to loan funds with a view to paying interest.
This example, of course, does not look very profitable for the bank.
A membership fee can be charged for the service provided by the card, but otherwise it is more of a value-added service to account holders than a significant retail revenue stream.
As a result, banks that are keen to offer a fully-functional and profitable Islamic credit card have been unsatisfied with the debit card alone and so have sought ingenious ways of constructing Sharia-compliant card agreements and repayment structures.
These structures one might very loosely describe as falling into either the Asian school of thought or the Gulf school of thought.
The Asian solution
Launched in December 2001, the Al Taslif Credit Card from AmBank in Malaysia (formerly the Arab Malaysian Banking Group) works off the Sharia principle of Bai’ Al Inah that covers instalment repayments over a fixed period.
Cardholders are charged 1.25% per month or 15% per annum on the outstanding balance, with nothing to pay if the minimum payment requested is made on time.
The Bai’ Al Inah contract works on the basis of two ‘akad’ agreements.
The first is the bank’s agreement to sell an item to the customer at an agreed price, with the second agreement covering the customer selling back to the bank at a lower price.
The difference is the bank’s profit on the transaction and is a predetermined amount.
Though a percentage repayment is being made, this differs from conventional structures in that payment of the minimum balance only does not trigger interest repayments for the outstanding balance.
Just from spending on the card, consumers are also helping charities via the AmBonus scheme.
For every RM100 spent on the Al Taslif card, an AmBonus of RM1 is earned that goes to pay off the annual card fee.
Once that fee has been repaid, however, all future AmBonus points are donated to charities by the bank.
More recently, Bank Islam Malaysia launched its Bank Islam Card (BIC) on 23rd July 2002, the name of the product deliberately avoiding the word ‘credit’.
The bank claims that this card, available in MasterCard Classic or Gold, is the first credit card to be based on Sharia contracts and that is thus free from Riba or Gharar (uncertainty) due to the fact that the maximum profit earned is declared up front.
BIC also has the distinction of being the first EMV Smart chip card issued in Malaysia.
The bank says that this card works off a combination of three Sharia contracts: Bai’ Al Inah (as for AmBank’s Al Taslif card), Wadiah and Qard Hassan.
Once an initial Bai’ Al Inah transaction has taken place, the item nominally transacted being “a piece of land” according to the bank, the proceeds of the second transaction are transferred into the customer’s Wadiah BIC account at the bank.
The customer can then use the BIC card to make payments with the collateral all coming from the funds in the Wadiah account.
Finally the Qard Hassan contract is activated if the cardholder wants to spend more than the funds available in the Wadiah account and the bank agrees to make more funds available on an interest-free basis.
The bank’s Chairman, Datuk Mohammed Youssef Nasir, says that Bank Islam will have targeted some 55,000 banking consumers with the BIC card by June this year.
The more stringent Gulf view
Critics of solutions such as the two above say that the Bai’ Al Inah contract is ethically flimsy when applied in this manner as the sale transacted is a fake sale and thus just a means of masking Riba.
As is the case with matters of Sharia-compliance, judgements are based on the Sharia board of each financial institution and so what may be acceptable to one board may yet be Haram for another.
For many Middle East bankers, therefore, the solutions found by the Asian banks are simply not stringent enough in their interpretation of Qu’ranic rules.
One Bahrain-based banker who prefers to remain anonymous believes that the Asian interpretation boils down to an injunction against using the card to purchase Haram items and services, and indeed the BIC card will reject transactions related to bars, gambling, massages and so on for payment.
The depth of the Sharia-compliance of the card contracts, he believes, are less important to the banks than the avoidance of involvement in any blatantly Haram transactions.
Whether you feel this is a fair accusation or not, Gulf banks do appear to be taking a different tack in their approach to credit card contracts.
In September 2002 Shamil Bank in Bahrain announced the launch of what in the words of Dr Ahmed Fouad Darwish, Head of Research, Planning and Development, he believes to be “the first Islamic credit card to be launched by a bank in Bahrain and probably in the world”.
The word ‘probably’ is a fair caveat in this statement, since as has become apparent there are multiple views on what might constitute an Islamic credit card and certainly several claimants to the laurels for launching the first one!
 Dr Ahmed Fouad Darwish, Head of Research, Planning and Development for Shamil Bank in Bahrain
Dr Darwish explains that the development process started with the Shamil Card, effectively a convenience charge card.
The bank charged fees to cover administrative and processing costs and the collateral was the balance in the cardholder’s account.
Progress began, however, when the bank began to see its relationship with the cardholder in terms of guarantees.
In the case of the charge card, Dr Darwish says, the customer has guaranteed himself and his purchased with the balance of his deposits, the bank making money purely off the fee structure.
From this viewpoint, the bank was then able to change tactics when exploring the possibility of an Islamic credit card.
It decided that the solution to Riba avoidance was to exercise the acceptable right of charging for the provision of a financial guarantee.
“There must be cost elements involved in making that guarantee,” Dr Darwish explains, “and in honouring the guarantee those costs are staff costs, processing costs and so on”.
The guarantee system works by agreeing that the card issuer is guaranteeing the cardholder’s payment to the acquirer in any transaction undertaken.
That guarantee holds sway in the time lag between the issuer’s payment and the acquirer’s receipt of funds.
The result of this research is the Al Rubban MasterCard, available in Bahrain dinars, Saudi riyals or US dollars.
No Wadiah deposit is required as the collateral comes from a direct salary transfer rather than a balance.
The payment system works by treating total card spend during any given month as being payable over 12 monthly instalments.
So, for a balance generated of BD100, 12 equal monthly instalments of BD8.34 will be due.
The revenue comes from a 5% fee for the provision of the guarantee and administrative costs that is levied on the first statement containing the transaction.
This fee must be settled by the due date on that statement and there is a fixed fee for cash advances that must also be repaid in full on the due date of that first statement.
Dr Darwish adds that the repayment period is set at 12 months for ease and convenience while the card is still being tested in the market, and that the instalment period can be extended.
The key point, he says, is that there is no link between the fees charged and the repayment period as in the case for conventional card repayments.
At about the same time that Shamil launched Al Rubban, fellow Bahrain-based institution, ABC Islamic Bank, also released details of its Al Buraq credit card.
The bank had firstly set up a subsidiary called the Islamic Credit Card (ICC) company. The issue of Al Buraq cards began with bank employees and corporate clients and is now available to individuals through ICC participating banks.
With the ABC strategy, proliferating the card through multiple markets so as to rapidly earn market share is a high priority.
As a result, although ABC has kept $3 million Class a ICC shares to itself, Mohammed Buqais, GM of ABC Islamic Bank, says that major Islamic banks and financial institutions have been invited to buy ICC Class B shares and thus gain the authority to issue Al Buraq cards to their customer bases in other countries.
Neither Shamil nor ABC Islamic Bank are unique in their investigation of Sharia-compliant cards. Al Rahji Banking & Investment Corporation (ARABIC) in Saudi Arabia, for example, also offers Sharia-approved Visa and MasterCards.
The question doesn’t appear to be whether Halal credit cards should be created, rather the focus is on exactly how they can be designed to be profitable while also Sharia-compliant.
If the efforts of pioneers such as Shamil and ABC prove a success, we can expect to see more design ingenuity applied to the issue so that the local banks really can meet the demand of local customers, however mountainous the challenge of meeting their needs might at first appear to be.
Banker Middle East 2003
Article originally published by Banker Middle East 30-Mar-03
Note: Getting any insight into 'Islamic Credit Cards' is both difficult and encouraging. Since 1986, when I was a teenager here in Toronto, I have been trying to invent, devise, figure-out from scratch a shariah-compliant credit card... Back in the 80's people called me crazy, nevermind an Islamic Credit Card, there were hardly any Islamic Banks! For years, every Islamic Banking Conference I attended found me alone in raising the issues related to Any type of Card and Electronic Funds Transfer at Point of Sale, EFT-POS. I finally developed my model and one out of the three Islamic Banking Scholars I approached identified that single obscure point that made my model Shariah-UNcompliant. Back to the drawing board... Today, reading the few articles in this Islamic Credit Card topic category, and we can see the true beginnings of an interest-free Islamic Credit Card industry have emerged in less than 18 months... InshAllah and by His mercy, I will contribute a new 'Canadian View and Solution' on Islamic Credit Cards. Amen.
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Posted by: IslamBank on Sunday, July 20, 2003 - 08:39 PM EST (892 Reads)
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MANAMA, BAHRAIN -- Kuwait Finance House (KFH) has launched an Islamic credit card.
The Al-Tayseer Credit Card has all the benefits of a conventional credit card, within Sharia law, says the bank.
"The introduction of Al-Tayseer credit cards are a part of our endeavour to meet the higher expectations and needs of customers," said assistant deputy general manager Mohammad Al Fozan.
"The cards allow cardholders to settle their monthly balance over a period of time with total flexibility and without interest charges."
Mr Al Fozan said the credit card had been formulated in accordance to KFH's Islamic vision to facilitate customers' banking procedures wherever they are in the world.
Note: As I'm adding this new item... I began to think that it finally is time to add a new category here at IslamBank.Community. Instead of putting the few and far between news items about 'Islamic Credit Cards' by default into the 'Card Tricks' category... now that the Grand-Daddy of Islamic Banks, KFH (Kuwait Finance House) has launched their interest-free card, I should 'launch' an 'Islamic Credit Card' category as well... InshAllah as soon as I can create a new topic logo, we'll have a new topic category for 'Islamic Credit Cards.'
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Posted by: IslamBank on Saturday, July 19, 2003 - 04:28 PM EST (611 Reads)
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ABU DHABI, UNITED ARAB EMIRATES -- Abu Dhabi Islamic Bank gears up to introduce an 'Islamic Credit Card', the first of its kind in the UAE market.
The Deputy Chief Executive Officer of Abu Dhabi Islamic Bank (ADIB), Mr. Mohammed Al Qubaisi recently revealed, that the consumers of the UAE market will not have to wait much longer for the payment card that would give them the satisfaction and comfort of a "Shari’ah Compliant Product."
In response to a question, Mr. Al Qubaisi pointed out that the current Credit Cards offered by the Islamic Institutions are in fact "Charge Cards", whereby the customers have to settle the full outstanding balance on their card monthly statement. A "Credit Card" in the true sense is when the Bank allows "Credit" to the customer where a balance is carried forward and repaid in installments over future months.
"Interest is forbidden in Islam, therefore, there was a compelling need for a product that would be in compliance with the Islamic Laws and at the same time offer the facility of a "True Credit Card" and ADIB has been working on this for some time now" explained Mr. Al Qubaisi.
Not commenting on the mode of operation of the credit card, Mr. Al Qubaisi advised that ADIB is introducing this product to satisfy the needs of the growing segments of the market (Mass, Middle and Upper).
It is a "Shari'ah compliant Product" which will give the customer the freedom to chose to pay the outstanding balance on the credit card in installments.
The product will be loaded with other additional benefits as well.
Note: If the underlying Electronic Funds Transfer Network (EFT) that the Card will use is still the same ones as Riba-Based cards use, then this is a only a first step. A good step mind you, InshAllah, not the last...
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Posted by: IslamBank on Tuesday, May 27, 2003 - 04:53 PM EST (934 Reads)
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KUALA LUMPUR, MALAYSIA -- BANK Islam Malaysia Bhd (BIMB) will offer extensive takaful insurance coverage to its credit cardholders under an agreement signed with Syarikat Takaful Malaysia Bhd on Thursday, May08 ,2003 .
BIMB consumer banking general manager Wan Ismail Wan Yusoh said under the agreement, the bank would include Syarikat Takaful's Family Plan and Investment-Linked Plan insurance coverage for its Bank Islam cardholders.
“Bank Islam Card is the first credit card to offer both takaful and khairat insurance to cardholders,” he said after formalising the agreement in Kuala Lumpur yesterday.
 Takaful Malaysia CEO Datuk Mohd Fadzil (left) exchanging documents with Bank Islam Malaysia MD Datuk Ahmad Tajudin Abdul Rahman. Witnessing the event is BIMB chairman Datuk Yusoff Nasir.
The Chairman said Syarikat Takaful would cover debts borne by cardholders (credit balance) upon his or her death or permanent disablement due to accident or disease.
On top of this, Syarikat Takaful will pay RM1, 000as khairat kematian (death benevolent fund) to the deceased's family, including to non-Muslim cardholders.
Note: Here is a wonderful example of very different Islamic Banking and Financial products, instruments and techniques being combined to create a real-world modern day alternative solution to existing Usury-Based Credit Card Debt and Interest-Based Insurance... Very Well, it would appear few excuses remain for most if not ALL Islamic Financial Institutions worldwide to 'catch-up' and replicate this entire solution and offer it their customers...eh?
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Posted by: IslamBank on Wednesday, October 16, 2002 - 11:01 AM EST (804 Reads)
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By Mushtak Parker
LONDON, UNITED KINGDOM — It is the dream of every consumer to have a credit card that does not charge interest. The likes of Al Ruban, Al Buraq, Al Taslif, and BIC are not yet household names, but they have one thing in common. Their issuers all claim that the cards operate on an interest-free basis.
In fact, Al Ruban, Al Buraq and BIC were launched in the last few weeks, and Al-Taslif toward the end of last year.
They are of course the Islamic credit cards, whose moment seems to have arrived.
But is an interest-free credit card possible? How will a bank issuing a card make money if it cannot charge interest on minimum payments or late payments?
Some argue that the very concept of an Islamic credit card is a misnomer, because in Islamic finance there is no such thing as a loan (apart from a Qard Hasan).
There are various contracts between the provider of capital and the user of capital, with the bank usually playing the role of the manager (the mudarib).
One or two banks have tried to use the concept of “an Islamic equivalent to a credit card” but that is a nightmare for the marketing men and copywriters.
For the lack of a better phrase, most banks have stuck to the generic concept of an Islamic credit card.
But banks (both Islamic and conventional) eying a potential Islamic credit card market of over 250 million customers in the MENA (Middle East and North Africa), south Asia, and Southeast Asia countries, cannot afford to ignore the advance of technology and the emergence, benefits, and flexibility of plastic and electronic money, especially for this nascent geographic market, where huge sections of the population still do not possess a card of any sorts — whether credit, debit or charge cards.
Armed with their product developers and their Shariah compliance advisers, the banks claim to have innovated a number of Islamic credit card structures which are Shariah-compliant and yet competitive in both cost and benefits to the cardholders.
Card companies such as Visa and MasterCard have seized this new market opportunity with equal enthusiasm. Their input is the brand label, payments processing, and card security. They leave the Shariah compliance aspects to the banks issuing the cards.
Yet all is not quiet on the eastern front. There seems to be a clash between the banks on the Islamic financial structures on which the credit cards are based.
The divide is roughly between Gulf banks and Malaysian banks — yet both sets of structures have been approved by respective Shariah compliance advisers.
The Gulf banks tend to be coy about revealing their Shariah structures claiming that it is their proprietary rights and intellectual property.
As such they would not like to reveal this to rivals. Nevertheless, one issuer has stressed that its structure is based on installment repayment basis.
Other contracts on which such a card can be based is Murabaha (a mark-up) or even a Musharaka (partnership) or a combination of more than one contracts.
The Malaysian banks, on the other hand, tend to use a combination of Bai Al Inah and Wadiah (deposit) agreements.
Note: This summary is the best snapshot of where the Islamic Credit Card Industry is today that I have ever come across. Well worth a few re-readings.
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Posted by: IslamBank on Monday, September 23, 2002 - 12:54 PM EST (757 Reads)
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By INDIRA CHAND
MANAMA, BAHRAIN -- A Bahrain bank has launched the region's first interest-free Islamic credit card.
The MasterCard-branded Al Buraq credit card is being issued by the International Credit Company (ICC), a subsidiary of ABC Islamic Bank.
The company, which currently operates in the wholesale market, is making the card available to commercial banks throughout the world.
The commercial banks would be the retail issuers of the card to their customers, said ABC Islamic Bank general manager Mohammed BuQais yesterday.
He was speaking during a Press conference, at the Arab Banking Corporation (ABC), to announce the launch of the card.
"The card is now in the market. We have issued it to some of our employees and clients," said Mr BuQais.
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Posted by: IslamBank on Sunday, September 22, 2002 - 01:24 PM EST (663 Reads)
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MANAMA, BAHRAIN -- Bahrain-based ABC Islamic Bank, owned by Arab Banking Corp (ABC), said on Sunday it has launched the first interest-free Islamic credit card.
The bank said in a statement it expected Al Buraq to be well received by customers who prefer a credit card based on sharia law, which bans dealing in interest as it is considered usury.
The bank said the issuer will charge an annual fee plus a minimal charge per transaction.
Bank officials said the card would be available from banks participating in a new company set up by ABC Islamic called Islamic Credit Card (ICC) that will run the interest-free cards.
ICC will issue two classes of shares, with A shares worth $3 million to be held by ABC Islamic Bank, while B shares would be offered to Islamic banks and finance houses.
Another Bahrain-based bank, Shamil Bank, said earlier this month it would issue Islamically-structured credit cards.
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Posted by: IslamBank on Saturday, September 21, 2002 - 09:53 AM EST (939 Reads)
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DUBAI, UNITED ARAB EMIRATES -- Dubai Islamic Bank (DIB), one of the United Arab Emirates (UAE)’s leading financial institutions, has recently launched a new holiday promotion for the bank’s Visa card and Visa Electron cardholders.
The promotion, which will run for six weeks, is set to end on October 25 , 2002.
For every 100 Emirati dirhams spent using Visa or Visa electron, Dubai Islamic Bank’s cardholders will be entered into a weekly draw for the chance to win one of 30 free return tickets to a variety of famous global destinations.
“We wanted to introduce a promotion that encourages Visa card and Visa Electron cardholders to use their card locally when paying for large or small daily expenses,” according to Rashid Mahboob, head of Cards Department, DIB.
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Posted by: IslamBank on Thursday, September 05, 2002 - 12:46 PM EST (680 Reads)
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MANAMA, BAHRAIN --Shamil Bank yesterday announced the launch of an innovative Islamic credit cards called Al Ruban, for the first time in the region.
Initially, about 5,000 cards will be issued for its consumer base by the end of September by the MasterCard and will be accepted at 12 million locations across the world, writes Mehmood Rafique.
"Al Ruban is one of the innovative products of Shamil Bank, designed and developed under the guidance of the Shari'ah board," the bank's CEO, Dr Said Sa'ad Al Martan, said at a Press conference which was also addressed by the group's head of commercial banking, Khalid Shaheen, Chairman of the Shari'ah Board, Shaikh Abdullah Sulaiman, and Sheikh Nizam Yaqubi, a member of the Shariah Board.
"The credit cards will be issued against the bank's guarantee and the customers can pay the outstanding bill in even 12 instalments. The bank will charge them per transaction and there will be no interest on the outstanding amount," Dr Al Martan said.
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Posted by: IslamBanker on Monday, April 29, 2002 - 10:40 AM EST (712 Reads)
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By Sudeshna Sarkar
DHAKA, BANGLADESH -- According to Islamic bankers, Shari'ah-compliant banks will do even better if they can launch the Islamic equivalent of the modern products introduced by conventional banks.
In Bangladesh, an Islamic credit card tops the list of such products.
The first Islamic bank made its appearance in Bangladesh in 1983. Today, almost 20 years later, the number has grown to six.
AKM Shahidul Islam, honourary consul of Malaysia in Dhaka, last year put the growth of credit cards in Bangladesh at 15 percent per annum. Both he and Azizul Haq, managing director of Islamic Finance and Investment Ltd, the only Islamic non-banking finance corporation in Bangladesh, said that people in the country are open to the idea of credit cards as such transactions are much safer than cash dealings.
However, the existing credit cards in the country are highly riba-based, with conventional banks charging a 3 percent monthly interest.
Since Bangladesh is Muslim-denominated, a large number of people here tend to avoid using credit cards as they do not want to be part of any riba-based transaction.
AKM Shahidul Islam said Islamic banks could tap this potentially lucrative market with the launch of an Islamic credit card.
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Posted by: IslamBanker on Saturday, April 06, 2002 - 01:07 PM EST (721 Reads)
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KUALA LUMPUR, MALAYSIA --BANK Islam, which pioneered Islamic banking in the country, will have a soft launch of its credit card based on the syariah concept this year.
Its consumer banking general manager Thalip Md Yasin said the card would initially be offered to its staff and customers.
Thalip said the card, to be based on three principles of Bai’ Al-Innah, Qardhul Hassan and Al-Wadiah, would be offered to the public either in June or September.
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Posted by: IslamBanker on Sunday, March 31, 2002 - 12:12 PM EST (548 Reads)
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MANAMA, BAHRAIN -- Arab Financial Services (AFS) General Manager, Mahmood Al Koofi said yesterday that the project of Islamic credit cards have almost been finalised.
"These cards will be launched in the second quarter of 2002. AFS will also offer these services on regional basis after meeting the demands in Bahrain.
The Bahrain Monetary Agency has already been approached for legal permissions to launch the first-of-its-type Islamic credit cards" he said.
"AFS is the leading Arab company for electronic banking, personal payment instruments and related services... Our target customers are financial and non-financial corporations primarily in the Middle East. AFS supplies state-of-the-art products and services reliably, efficiently, competitively, at a quality that far exceeds customer expectations," he added.
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Posted by: IslamBanker on Friday, March 22, 2002 - 11:48 PM EST (580 Reads)
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IslamOnline.Net: Whether you call it Visa, MasterCard, American Express, or Discover, it's still a credit card.
It makes a big difference. Having one can open doors to buying anything. If you are out of cash, you can whip the “plastic” out and make your purchase.
Whether purchasing clothing, shoes, eating at a restaurant, applying for a loan, or renting a car, credit cards can be very useful and helpful.
With the usage of the credit card, most card users have become very familiar with using the card as a loan machine leading them to pay a high amount of interest, which has become an enormous worry for the Muslims. The big dilemma is whether or not Muslims can or cannot use them.
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Posted by: IslamBanker on Thursday, February 07, 2002 - 03:25 AM EST (606 Reads)
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By Suraya Abdullah
At the beginning of this millennium, the Bahrain-based Arab Financial Services had announced its plans to introduce into the market the first-ever Islamic credit card, in association with ABC Islamic Bank.
With the rapid growth of the Islamic finance sector globally, the bank felt that the time was ripe to come up with this facility to serve the growing needs of the Muslim communities around the world.
Bank Islam Malaysia Berhad (BIMB), Malaysia's only full-fledged Islamic bank before the establishment of Bank Muamalat, has also considered the idea.
"We have thought about coming up with an Islamic credit card and our Shari'ah Advisory Board is still deciding on the matter," a spokesperson of BIMB said.
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Posted by: IslamBanker on Thursday, February 07, 2002 - 03:20 AM EST (946 Reads)
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An interest-free credit card based on Islamic Shariah is going to be introduced in Bangladesh soon.
The card, named Islamic Credit Card, will be introduced by a consortium of five local private banks operating their banking activities based on Islamic Shariah. The credit card has been developed by a leading Malaysian computer software manufacturing company spending US$ 37 million.
Dato' Azlan Hashim, Deputy Chairman of Arab Malaysian Bank (2nd from right) explaining various aspects of the Islamic Credit Card at a press conference at Sheraton Hotel in Bangladesh. President of Silverlake System SDN. BHD. Chee Chin Leon and Honorary Consul of Malaysia AKM Shahidul Islam are also seen.
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Posted by: IslamBanker on Thursday, February 07, 2002 - 02:37 AM EST (744 Reads)
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HSBC Bank Malaysia Bhd expects to enlist 3,000 to 5,000 card members this year for Malaysia's first Islamic charge card -- HSBC Amanah.
Its deputy chairman and chief executive Dyfrig John said: 'We are confident that we will be able to achieve the target because (according to our study) we have a strong demand from Muslims and non-Muslim customers.'
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Posted by: IslamBanker on Thursday, February 07, 2002 - 01:30 AM EST (623 Reads)
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The Islamic credit card is considered the first that conforms with Sharia principles
May 29, 2001, 12:52 PM MANAMA (AFP)
Bahrain-based ABC Islamic Bank announced Tuesday that it is to launch the first credit card conforming to strict Islamic Sharia regulations.
"This card is considered the first Islamic credit card that conforms with Sharia principles and is expected to be well accepted by all customers who prefer to utilise a credit card based on Sharia principles," general manager Mohammad BuQais said in a statement.
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