banking for the unbanked
TRANSCRIPT
Banking for the unbanked
A case for wealthy economies
‘Dubai as a model’
April 2008
April 2008
UAE – a wealthy economy• UAE is one of the fastest growing economies
– Real GDP growth of 8% (2007)
Abu Dhabi - dependent on oil Dubai - diversified away from oil to become region’s trading hub
“We will present to our world proof that we are capable of action, capable of imposing our presence” - H.H. Sheikh Mohammed Bin Rashid Al Maktoum
Slide 3
UAE’s unbanked population • 48% of UAE’s population remains unbanked
Bankable population in the UAE (2006) Millions
Banked
Un-banked
Bankable population defined as those earning in excess of USD 100 per month who are above 20 years of age
Slide 4
UAE’s unbanked population (cont’d)
• Low income employees are primarily from the subcontinent
Total Population DistributionPeople by nationality
Source: CB Richard Ellis, Ministry of Economy, PwC Analysis, NIB Research
Total = 4.2 mn
Low Income Population DistributionPeople by nationality
Total = 1.8 – 2.0 mn
~ 1 million labourers are from the sub continent
Slide 5
UAE’s unbanked population (cont’d)
• Low income employees are primarily employed in CRM sectors (65%):
“C”
“R”“M”
Slide 6
Dubai – A logical platform for low income banking• Labour force employed in Dubai (as % of UAE):
– Over 67% in construction
– 70% in wholesale retail
– 25% in manufacturing
Slide 7
Banking requirements easily serviced
Residential access is concentrated
Demographics are consistent
Income levels are low
Financial habits are routine
Slide 8
Current scenario• The unbanked are neglectedNone of the local and foreign banks in the UAE offer dedicated
products and services to the unbanked
Financial services Money management Happy labour force
Slide 9
Noor’s commitment• Noor Islamic Bank (NIB) is committed to challenging
the status quo– To cater to unbanked sectors through extensive reach
• Initial model developed relied on NIB platform – Limited distribution network
• NIB has partnered with Emirates Post to deliver a shared vision
• Widely known, respected and a trusted brand name
• Geographically dispersed distribution network in UAE
• Advanced physical infrastructure• On the ground staffing• Immense cross sell opportunities on
existing clientele
• Islamic banking expertise• Training and on-going support• Innovative Sharia compliant products• Banking professionals• Leverage operational infrastructure,
systems credit, etc.• Access to specialised expertise,
including Takaful, Credit Cards, Mortgages etc.
Slide 10
• The proposed venture will provide a comprehensive suite of Sharia compliant financial services– Tailored for the currently unbanked
– Through convenient service channels
Proposed offering
Slide 11
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