Own Correspondent
29th November 2022
ABSA Bank Botswana has today launched a key milestone by offering the Islamic Banking customer value proposition in a phased approach, which is focusing on Deposits in the first phase, with the second phase focusing on lending. Bank officials say that the development and subsequent delivery of this offering is a result of the feedback that we received from our customers.
“It gives us pleasure when we collaborate with our customers in co-creating solutions that align to their needs, aspirations, and way of life. This aligns to our purpose of bringing possibility to life. Indeed, what we are here to launch today is a product of such partnerships and collaborations with our Muslim Customers,” said Keabetswe Pheko-Moshagane, Managing Director, Absa Bank Botswana.
She said, “We expect Botswana to be a growing market in the offering of Islamic Banking.”
In its September 2022 report, Moody’s Investors Service report indicates that Islamic Banking assets are expected to rise in Africa in the next decade and it is important that as Absa we play our part in the growth of this sector.
This expectation is allegedly further cemented by the number of our customers who have expressed an interest in having their business and personal banking done under the governance of Shariah Law.
More importantly, ABSA’s partnership with the Muslim community provides opportunities for bank to ensure that new products are developed to match the diverse and discerning needs of its customers, while meeting the requirements of the Shariah.
- The Islamic Banking proposition supports a system based on integrity, transparency and clarity which are the same principles which are enshrined in the Holy Koran and the Sunnah, and which form the basis of the Islamic finance. The growth of Islamic finance has been exponential during the last few years.
- As an institution that upholds diversity and inclusion, ABSA has been keen to explore the introduction of alternative forms of saving and investing that operates separately from other conventional accounts. Through this product, transactions are done under the governance of Shari’ah Law.
“As a bank, we remain dedicated to finding relevant and purposeful solutions dedicated to meeting the ever-evolving needs of our customers. We continue to offer customer-centric solutions and we are excited to introduce a value offering solution to the market that provides an alternative form of banking and investing,” said Keabetswe Pheko-Moshagane, Managing Director, Absa Bank Botswana.
The Absa Islamic Banking Fixed Deposit Account features include statements upon request, a minimum opening balance of P1000, and an investment term of eight days up to five years. Moreover, the Islamic Banking proposition has a dedicated Relationship Manager (RM) and Contact Centre Support. The account has been certified Shari’ah compliant by an independent Shari’ah Advisory Committee.
Although the primary target market of Islamic Banking is the Muslim Community, this proposition is not exclusively for Muslims. The proposition is available to anyone that would like to consume Islamic Banking products irrespective of their religious denomination. Absa Bank Botswana will continue to develop and grow the Islamic Banking portfolio to meet the diverse needs of customers. The Bank commits to becoming the leading financial services partner in the market.
“Part of our commitment as Absa Bank Botswana is building and creating a friendly banking environment for our customers. Our goal is to expand access to tailor-made financial services and cater to the different needs of our customers and help them find ways to get things done,” concluded Keabetswe Pheko-Moshagane.
