Post on 20-May-2020
World Islamic Banking Competitiveness Report 2013–14 The transition begins
Conte
2 World Islamic Banking Competitiveness Report 2013–14
OpeningForewordExecutive brief
Performance review
Performance outlookCEO agenda
Qatar
Saudi Arabia
Turkey
nts
3World Islamic Banking Competitiveness Report 2013–14
Foreword
of talent and capital.
Abdulaziz Al-Sowailim
MENA Region
4 World Islamic Banking Competitiveness Report 2013–14
economic and political
17.6%
5World Islamic Banking Competitiveness Report 2013–14
Ashar Nazim Jan Bellens
Executive brief
QISMUT
provided.
6 World Islamic Banking Competitiveness Report 2013–14
Key
7World Islamic Banking Competitiveness Report 2013–14
Growth
QISMUT growing at 5-year CAGR
8 World Islamic Banking Competitiveness Report 2013–14
•
•
•
•
•
•
•
•
on regulatory clarity
•
1
2
3
9World Islamic Banking Competitiveness Report 2013–14
10 World Islamic Banking Competitiveness Report 2013–14
11World Islamic Banking Competitiveness Report 2013–14
•
•
•
GCC*
•
•
•
•
•
•
•
12 World Islamic Banking Competitiveness Report 2013–14
*
•
*
*
•
•
•
• report
•
•
*
•
13World Islamic Banking Competitiveness Report 2013–14
200
0
GCC
•
•
•
•
UAE 5%
Turkey 2%
14 World Islamic Banking Competitiveness Report 2013–14
UAE
Turkey
Turkey 7%
500
200
0
15World Islamic Banking Competitiveness Report 2013–14
70%
50%
20%
0% 25% 205% 225%
KSA
Kuwait
Turkey
Egypt
Qatar
JordanUAE
0 25 50 75 100 125 150 175 200 225million
Indonesia
Pakistan
India
Bangladesh
Egypt
Nigeria
Iran
Turkey
Algeria
Morocco
16 World Islamic Banking Competitiveness Report 2013–14
31%
42%
11%
20%
14%
29%
Qatar
Saudi Arabia
Malaysia
UAE
Turkey
Indonesia
0% 5% 10% 15% 20% 25% 30%
CAGR 2008–12
Islamic Conventional
0 5 10 15 20 25 30 35 40 45 50
Bahrain
Kuwait
Egypt
Jordan
Pakistan
Bangladesh
2%
6%
12%
19%
25%
24%
Islamic Conventional
CAGR 2008–2012
17World Islamic Banking Competitiveness Report 2013–14
2008 2009 2010 2011
US$b
Qatar
2012
30
25
20
15
10
5
0
23%
2008 2009 2010 2011
US$b
Indonesia
2012
14
12
10
8
6
4
2
0
31%
2008 2009 2010 2011
US$b
Saudi Arabia
2012
80
70
60
50
40
30
20
10
0
9%
2008 2009 2010 2011
US$b
Malaysia
2012
90
80
70
60
50
40
30
20
10
0
23%
2008 2009 2010 2011
US$b
UAE
2012
50454035302520151050
6%
2008 2009 2010 2011
US$b
Turkey
2012
30
25
20
15
10
5
0
24%
18 World Islamic Banking Competitiveness Report 2013–14
A natural outcome will be a more direct
medium term.
expected core workforce.
19World Islamic Banking Competitiveness Report 2013–14
for a good platform for organic
0 1 2 3 4 5 6 7 8 9 10CAR2012US$b
2009 2010–12
20.0%
13.9%
33.0%
17.4%
21.4%
15.4%
17.4%
18.2%
16.9%
18.5%
18.7%
12.6%
15.7%
13.6%
34.7%
14.8%
18.5%
14.3%
14.7%
24.4%
20 World Islamic Banking Competitiveness Report 2013–14
Managing capital
21World Islamic Banking Competitiveness Report 2013–14
•
•
•
020406080 0% 15% 30%
Total assets — 2012 Average ROE 2008 - 2012US$b
Average ROE
Average
15.8%
Comparable conventional average 13.8%
22 World Islamic Banking Competitiveness Report 2013–14
Regulatory clarity key to
regulatory framework.
•
•
• management
•
23World Islamic Banking Competitiveness Report 2013–14
Sukuk innovation
0
100
200
300
400
500
600
700
800
0
20
40
60
80
100
120
140
Num
ber o
f iss
ues
Volu
me
US$
b
Volume (US$b) YTD2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
full return of original capital at
of a cumulative coupon.
24 World Islamic Banking Competitiveness Report 2013–14
to give a verdict.
25World Islamic Banking Competitiveness Report 2013–14
Primary Sukuk
Malaysia• 525• 76,914
Singapore• 3• 423
Pakistan• 1• 419
China• 3• 275
Saudi Arabia• 20• 14,491
UAE• 12• 6,818
Turkey• 7• 4,770
Gambia• 49• 46
Germany• 1• 55
Luxembourg• 1• 20
Indonesia• 53• 6,718
Qatar• 8• 2,274 • Number of issues
• Total size of issues (US$m)
Brunei Darussalam• 14• 1,085
Maldives• 1• 3
Bahrain• 25• 1,585
Kuwait• 2• 44
United Kingdom• 1• 11
26 World Islamic Banking Competitiveness Report 2013–14
27World Islamic Banking Competitiveness Report 2013–14
28 World Islamic Banking Competitiveness Report 2013–14
29World Islamic Banking Competitiveness Report 2013–14
Hammad Younas
annum. Average per capita income range
Volume of trade
current decade.
opportunity.
total population
gaining market
of conventional
13In addition to QISMUT
or regulatory
banking.
30 World Islamic Banking Competitiveness Report 2013–14
and Africa could be unnerving for
advantage.
31World Islamic Banking Competitiveness Report 2013–14
Impact of macro and micro environmental
Enabling job creation
32 World Islamic Banking Competitiveness Report 2013–14
• on price only
•
•
•
•
digital banking economy
•
•
33World Islamic Banking Competitiveness Report 2013–14
growing number of credible Dubai
provider A legal
framework
regulatory
market
A favourite
center for
world
digital economy
providing a platform
A global capital for
A world
economy
and
34 World Islamic Banking Competitiveness Report 2013–14
growing number of credible Istanbul
35World Islamic Banking Competitiveness Report 2013–14
enacted
growing number of credible Kuala Lumpur
36 World Islamic Banking Competitiveness Report 2013–14
growing number of credible London
37World Islamic Banking Competitiveness Report 2013–14
growing number of credible Manama
38 World Islamic Banking Competitiveness Report 2013–14
39World Islamic Banking Competitiveness Report 2013–14
40 World Islamic Banking Competitiveness Report 2013–14
41World Islamic Banking Competitiveness Report 2013–14
KSA
UAE
205
Qatar
Turkey
42 World Islamic Banking Competitiveness Report 2013–14
0
5
10
15
20
25
30
35
3.2x
2012 2018
43World Islamic Banking Competitiveness Report 2013–14
•
•
•
compliance
Rauf Rashid
44 World Islamic Banking Competitiveness Report 2013–14
16.9%Noticeable
improvement
Revival driven by improved
retail and trade
1.6% 1.9%partly due to
improve by
Value not fully
average product
Segmentation
45World Islamic Banking Competitiveness Report 2013–14
could be a key differentiator
2 5 7 20 22 25 27
Cana
da
Uni
ted
King
dom
Japa
n
Sing
apor
e
Hon
g Ko
ng
Swed
en
Germ
any
Nor
way
Fran
ce
New
Zea
land
Finl
and
Taiw
an
Irela
nd
Spai
n
Saud
i Ara
bia
Pola
nd
46 World Islamic Banking Competitiveness Report 2013–14
50 52 55 57
Italy
Port
ugal
Indi
a
Turk
ey
Mex
ico
Hun
gary
Kuw
ait
Slov
enia
Colo
mbi
a
Slov
akia
Rom
ania
Arg
entin
a
Jord
an
Mor
occo
Om
an
Egyp
t
Croa
tia
relatively better placed
47World Islamic Banking Competitiveness Report 2013–14
48 World Islamic Banking Competitiveness Report 2013–14
49World Islamic Banking Competitiveness Report 2013–14
Customertransformation
Mobilebanking
Capitalplanning
management capacity.
50 World Islamic Banking Competitiveness Report 2013–14
Strategy
Value proposition and target customers
Segmentation Treatment strategies
Product ranges
Distribution model
Service excellence
Cross-selling operating
model
Right product
Right timeRight
customer
Increase in average product holding, advocacy and retention
Clear vision, mission and values of the bank
Abid Shakeel
51World Islamic Banking Competitiveness Report 2013–14
Customertransformation
Mobilebanking
Capitalplanning
Mature customer insights from data analytics Identifying customer needs Increased sales per meeting for sales advisers
Develop a product suite for different segments Relevant product range to attract quality customers
Increase in average product holdings and profitability of customers
Approach the right customers with the right products at the right time Targeted marketing campaigns Increase in marketing ROI
What Islamic banks need Capability from segmentation Impact on profitability
Increase in customer advocacy and recommendation to family and friends
Increase in customer engagement and satisfaction Increase in customer acquisition at lower costs
Needs-based selling
Profitable product suite
Marketing mix across channels
Increased customer satisfaction
Segmentation can not only provide
Mohammed Khan
Customertransformation
Mobilebanking
Capitalplanning
52 World Islamic Banking Competitiveness Report 2013–14
69%
Customertransformation
Mobilebanking
Capitalplanning
53World Islamic Banking Competitiveness Report 2013–14
12%
44%
30%
product development can produce
Combining product development
Customertransformation
Mobilebanking
Capitalplanning
54 World Islamic Banking Competitiveness Report 2013–14
Evaluating your
•
•
•
• •
•
•
•
•
•
• Marketing department
•
•
55World Islamic Banking Competitiveness Report 2013–14
Shoaib Qureshi
Cross-selling operating
model
build a collaborative management model Account planning for
proactive regular feature
to collaborate for account penetration
Customertransformation
Mobilebanking
Capitalplanning
56 World Islamic Banking Competitiveness Report 2013–14
Selim Elhadef
•
•
•
and experienced workforce will be a factor
57World Islamic Banking Competitiveness Report 2013–14
•
•
•
•
•
Customertransformation
Mobilebanking
Capitalplanning
58 World Islamic Banking Competitiveness Report 2013–14
0
50
100
150
200
0
50
100
150
200
2012 2013 2014 2015 2016 2017 2018
QISMUT trade flows World trade flows
Customerease of doing
business
Seamlessprocess
functionality
Productinnovation
Treasury
*F/Xhedging
Workingcapital
*LCs and*LGs
Trade finance
Internationalconnectivity
Customertransformation
Mobilebanking
Capitalplanning
Houssam Itani
59World Islamic Banking Competitiveness Report 2013–14
capital planning
15.9%14.3%
2.7% 3%
1.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Capital (Basel II) Capital (Basel III)
Tier2 Tier1
•
•
•
•
Maged Fanous
Customertransformation
Mobilebanking
Capitalplanning
60 World Islamic Banking Competitiveness Report 2013–14
•
• 0%
5%
10%
15%
20%
25%
30%
35%
0 12% Min. Cap Req. CAR (B3) — Estimate
Customertransformation
Mobilebanking
Capitalplanning
61World Islamic Banking Competitiveness Report 2013–14
Mobile banking
62 World Islamic Banking Competitiveness Report 2013–14
Example of mobile money implementation road map
Mobile moneylaunch
Strategy
Productand
services
Customerexperience
Agentnetwork
Operatingmodel
Technology
Regulation
Concept and feasibility approved Design completed
Define offering line(person-to-person M-Pesa
like vs. full financialproducts line)
Design high -leveloperating model optionsand interaction amongbank, telco providers,
third parties
Set vision, aspirations andgoals for mobile money: bank
for unbanked? Paymentplatform?
Engage stakeholders and maintain commitment
Definepositioning
Draft productconcept ofservices
Business case
Assess unexploitedusage opportunities
through mobile money
Design customerexperience
Define customerprocesses to
implement desiredexperience
Prepare customeragents manual
and FAQ
Traincustomer
agents
Fine-tune andfinalize actual
pricingDefine pricing
models
Definemarketing
plan
Mobile moneylaunch
campaign
Define saleschannel for
mobile money
Designsales agentprocesses
Size salesagent network
Preparesales agents
manual and FAQ
Train salesagents
Design internalprocesses (activation,
assurance, inquiry,etc.)
Contract andservice-level
agreements withthird parties
Design interactionprocesses andinterfaces with
third parties
Test integrationwith third parties
Design technologyarchitecture for
mobile money andintegration withlegacy systems
Scout technologyplatforms to
enable mobile money
Select technologyplatform and
system integrator
Assess mobile moneytransactions models
(i.e. USSD, direct billing,NFC, etc.)
Design ITinterfaces with
third parties Design integrationwith internal
systems to managemobile money
Design self-servicechannels (web, mobile)
to enable/managemobile money
ImplementIT systems todeliver mobile
money
TestIT systems
Mobile moneypilot
Fine-tunesprocesses
Assess currentregulations
Inquiry andchallenge gaps
Monitor alignmentof design with
regulation evolution
Monitor alignment ofdesign with strategy
Designcontractual
agreements andclauses
Design cross-sellingcampaign for
current customers
Identify customerstarget segments for
mobile money services
Evaluate and select vertical integrationoptions to deliver services
(roles and involvement of bank,telco providers, third parties)
Scout technologiesfor user authentication
and security
Design sales andcustomer channel
integration (for mobile moneyand traditional products)
Assess value addedthrough mobile money
(current customer pain pointsand overcoming solutions)
Identify organizational/HRgaps and definefulfillment plan
Scout technologiesfor mobile Wallet
solutions
Design mobilewallet vs. legacy
products integration
Asses cultural and skillgaps for mobile money
products and definetransformation plan
management.
Shabkhez Mahmood
Customertransformation
Mobilebanking
Capitalplanning
63World Islamic Banking Competitiveness Report 2013–14
64 World Islamic Banking Competitiveness Report 2013–14
65World Islamic Banking Competitiveness Report 2013–14
Qatar
66 World Islamic Banking Competitiveness Report 2013–14
•
•
trajectory over medium term
•
2008 2009 2010 2011
US$b
Assets growth
2012
50
45
40
35
30
25
20
15
10
5
0
26%
2008 2009 2010 2011
US$b
Financing growth
2012
30
25
20
15
10
5
0
23%
Islamic Conventional
2008 2009 2010 2011
Return on assets
2012
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
2008 2009 2010 2011
US$b
Deposits growth
2012
35
30
25
20
15
10
5
0
31%
2008 2009 2010 2011
Return on equity
2012
25%
20%
15%
10%
5%
0%
Islamic Conventional
2008 2009 2010 2011
Cost to income ratio
2012
35%
30%
25%
20%
15%
10%
5%
0%
Islamic Conventional
67World Islamic Banking Competitiveness Report 2013–14
68 World Islamic Banking Competitiveness Report 2013–14
•
•
•
2008 2009 2010 2011
US$b
Assets growth
2012
25
20
15
10
5
0
36%
2008 2009 2010 2011
US$b
Financing growth
2012
14
12
10
8
6
4
2
0
31%
2008 2009 2010 2011
Cost to Income Ratio
2012
80%
70%
60%
50%
40%
30%
20%
10%
0%
Islamic Conventional
2008 2009 2010 2011
US$b
Deposits growth
2012
18
16
14
12
10
8
6
4
2
0
37%
2008 2009 2010 2011 2012
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Islamic Conventional
Return on assets Return on Equity
Islamic Conventional
2008 2009 2010 2011 2012
22%
24%
20%
18%
16%
14%
12%
0%
69World Islamic Banking Competitiveness Report 2013–14
Saudi Arabia
70 World Islamic Banking Competitiveness Report 2013–14
•
•
•
Assets growth
2008 2009 2010 2011
US$bAssets growth
2012
160
140
120
100
80
60
40
20
0
16%
Islamic Windows2008 2009 2010 2011
US$b
Financing growth
2012
80
70
60
50
40
30
20
10
0
9%
2008 2009 2010 2011 2012
45%
43%
41%
39%
37%
35%
33%
31%
29%
27%
25%
Islamic Conventional
Cost to income ratio
2008 2009 2010 2011
US$b
Deposits growth
2012
100
90
80
70
60
50
40
30
20
10
0
21%
2008 2009 2010 2011
Return on assets
2012
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Islamic Conventional
2008 2009 2010 2011
Return on equity
2012
17%
16%
15%
14%
13%
12%
11%
10%
Islamic Conventional
71World Islamic Banking Competitiveness Report 2013–14
72 World Islamic Banking Competitiveness Report 2013–14
•
•
• 20%
2008 2009 2010 2011
US$b
Assets growth
2012
140
120
100
80
60
40
20
0
24%
2008 2009 2010 2011
US$b
Financing growth
2012
90
80
70
60
50
40
30
20
10
0
23%
2008 2009 2010 2011 2012
50%
45%
40%
35%
30%
25%
Islamic Conventional
Cost to income ratio
2008 2009 2010 2011
US$b
Deposits growth
2012
120
100
80
60
40
20
0
32%
2008 2009 2010 2011
Return on assets
2012
1.4%
1.3%
1.2%
1.1%
1.0%
0.9%
0.8%
0.7%
0.6%
0.5%
Islamic Conventional
2008 2009 2010 2011
Return on equity
2012
17%
16%
15%
14%
13%
12%
11%
10%
9%
8%
Islamic Conventional
73World Islamic Banking Competitiveness Report 2013–14
United Arab
74 World Islamic Banking Competitiveness Report 2013–14
•
• Greater regulatory clarity and new enabling
•
2008 2009 2010 2011
US$b
Assets growth
2012
90
80
70
60
50
40
30
20
10
0
13%
2008 2009 2010 2011
US$b
Financing growth
2012
50
45
40
35
30
25
20
15
10
5
0
6%
2008 2009 2010 2011 2012
50%
45%
40%
35%
30%
25%
Islamic Conventional
Cost to income ratio
2008 2009 2010 2011
US$b
Deposits growth
2012
70
60
50
40
30
20
10
0
14%
2008 2009 2010 2011 2012
1.9%
1.7%
1.5%
1.3%
1.1%
0.9%
0.7%
0.5%
Islamic Conventional
Return on assets
2008 2009 2010 2011
Return on equity
2012
16%
14%
12%
10%
8%
6%
4%
2%
Islamic Conventional
75World Islamic Banking Competitiveness Report 2013–14
Turkey
76 World Islamic Banking Competitiveness Report 2013–14
•
•
•
2008 2009 2010 2011
US$b
Assets growth
2012
45
40
35
30
25
20
15
10
5
0
29%
2008 2009 2010 2011
US$b
Financing growth
2012
30
25
20
15
10
5
0
24%
2008 2009 2010 2011
US$b
Deposits growth
2012
30
25
20
15
10
5
0
24%
2008 2009 2010 2011 2012
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
Islamic Conventional
Cost to income ratio
2008 2009 2010 2011 2012
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
Islamic Conventional
Return on assets
2008 2009 2010 2011
Return on equity
2012
22%
20%
18%
16%
14%
12%
10%
8%
Islamic Conventional
77World Islamic Banking Competitiveness Report 2013–14
•
•
•
•
•
•
Thought Leadership Award, 2011
Best Takaful Advisory Firm, 2011/2009
Best Islamic Research, 2011
Thought Leadership Award, 2011
Best Takaful Advisory Firm, 2011/2009
Best Islamic Finance Advisory Firm, 2009/2008/ 2007/2006
WIBC Leading Islamic Financial Services
Provider, 2008
Most Outstanding Business Advisory & Consulting Firm,
2007/2006
Best Islamic Consulting Firm,
2006
78 World Islamic Banking Competitiveness Report 2013–14
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• on
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factor
•
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report
79World Islamic Banking Competitiveness Report 2013–14
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•
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•
•
•
•
•
•
•
•
•
•
•
•
•
Turkey
•
•
• Kuveyt Turk
•
80 World Islamic Banking Competitiveness Report 2013–14
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•
•
•
•
• Samba Financial Group
•
•
•
•
•
•
•
•
•
UAE
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
• Agrani bank
•
•
•
•
•
Turkey
•
•
•
•
•
81World Islamic Banking Competitiveness Report 2013–14
82 World Islamic Banking Competitiveness Report 2013–14
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SCORE No. EK0214
ED 0114
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