BANKING CUSTOMER TRENDS: LESSONS AND WAY FORWARD FOR ISLAMIC BANKS

Ernst and Young released third global consumer banking survey 2014 titled "Winning Through Customer Experience". This report reveals important insights for banks that are determined to meet and exceed customer's expectations and a warning to those that have for years bullied their customer or took them for granted.

This article provides some key lessons learned from the report for Islamic Banks to capitalise in order to satisfy and exceed customer expectation as well as stay on top of competition.

Lesson One: Winning customer trust is a key to success. Trust is the perception from the heart and mind about you based on the way you look (brand), behave ( communication and customer service)and what you know ( expertise and quality of advise). The survey reveals top reasons to win complete trust from the customers which banks should strive towards them or maintain them to succeed. 1. Bank financial stability, 2. The way customer is treated, 3. Quality of advice, 4. Communications and 5. Complaint handling.

Lesson Two: Enrich wonderful customer experience, be transparent and customise products with customer's needs. The survey has shown that top reasons for customer to open or close account depend on them. Customer wants transparency of fees and how to avoid them, simplicity of offers and clear communications.

Lesson Three: More and better advice in order to help customers make right financial decisions in complex environment. The survey reveals that customer's are ready to increase balances and accounts in exchange for banks helping them develop:
1. Financial plans and goals.
2. Provide advice that is customer centric based on holistic perspective of the customer unique situation and needs.

Lesson Four: To stay competitive, banks need to continue building channel capabilities to provide 24/7 real time banking, seamlessly accross channels.

Lesson Five: Important to increase customer advocacy and expand bank-customer relationship.

Lesson Six: Work with customer when problem arise and become their advocate.

WHAT NEEDS TO BE DONE?

No easy answer. However, the following measures if exists or taken shall position the bank on the right track:

1. Monitor customer service delivery, standards and customer satisfaction by not only conducting customer satisfaction surveys but having in place customer service champions in branches and every customer contact centers to train and monitor customer service delivery and standards.

2. Place schedule of fees in branches, website and be prepared to explain and defend them emotionally but reasonably. Bank employees must know the bank tarrif and know the 'why' and 'how' it is charged and ways for customer to avoid it.

3. Complaint handling policy and procedures should be in place and informative. Every person in the bank should be prepared to handle complaint professionally and reach resolution that guarantee customer satisfaction.

4. Institute customer advocacy strategy that is mutually beneficial between the bank and the customer.

5. Expand communications channels to include social media channels and service delivery channels such as agency banking, internet and mobile banking.

6. Develop banking products that take into account individual life cycle, customer risk appetite and customer pocket size. Furthermore, banks should not wait for customer insights but go for them through institutionalized customer feedback mechanism and various market research tools.

All the best.

RIHN (PLEDGE/SURETY) AND KAFALAH (SURETYSHIP) AS TOOLS TO REACH THE UNBANKED.

INTRODUCTION

Rihn or pledge is a security to which the lender may have recourse in the event of the failure by the borower to fulfil his obligations. The prophet pbuh borrowed from a jew against the security of an iron breastplate which was at the jew at the time of his demise. Related to the contract of Rihn is Kafalah. However, Kafalah means to take on the responsibility for the payment of debt or for person appearance in court.

Kafalah and Rihn interrelate in the case of debt, but they have different functions. In Kafalah, third party becomes surety for the payment of debt, but in Rihn the debtor hands over something as a pledge to ensure the payment of debt.In addition, a rihn is also regarded as a trustship, the creditor has to hold the pledged property as a trust.

It is lawful to become surety of a surety in the sense that there can be more than one surety at the same time for single obligation, i.e. joint surety or joint guarantee;each one is liable only for his share of the debt. If the jointly indebted people become surety for each other, each one of them is liable for the whole debt.

The contract of Rihn and Kafalah are instrumental tools to include or assist the unbanked population to have access to credit facilities that would otherwise take time to prove networth of their businesses or meet personal needs timely or to start a business for which the capital is required.

FACTORS CONSIDERED IN GRANTING CREDIT FACILITY IN TANZANIA.

In the provision of credit facilities to their customers, most of banks in Tanzania examine and analyse the volume of business transaction (account turnover) and the Rihn (pledge) or Kafalah (security). However, the reliance is on the account turnover. As a result, those who are not banking frequently or had not used banking and financial services in their lives (unbanked), their needs are hardly met timely and appropriately.

According to McKinsey report published in 2009, half the world is unbanked. According to the report, East African countries are not doing better and Tanzania has the lowest percentage of adults using financial services i.e 5%. Why? There are number of factors, some of which will take years to overcome while others requires bankers to change their approach. There is no reason why urban population where most banks are located arenot using financial services. As an experienced member of the sales team, it not rare to find that some dont bank because banks have perception problem- need people to deposit but have strict conditions on provision of credit facilities!

In today Tanzania, it is a common phenomenon for individuals and businesses to request bank credit criterias before they decide to bank with or without you. The requirement to have years or months of historical record of banking transactions demoralise the unbanked who are in need of immediate financial solutions for their pressing challenges. To attract this sidelined market segment, I suggest to the extent possible, banks to base their assessment of credit repayment ability on the viability of the similar businesses in similar or near-by location with proven records plus rihn or kafalah.

If not possible to benchmark and the unbanked is a start-up, I suggests tailor made basic entreprenuership training should be provided. Entreprenuership skills can be transferred through learning and coaching. In 2006, i carried out field work at an organisation called TASO in Uganda, it was clear that if you provide business training and provide micro-finance to those who have shown mastery on the concept presented, you save that family from going down to the extreme poverty. On another hand, a lot of SMEs are not banking but have assets to pledge as security or have guarantors, therefore rather than demand and depend on account turnover, the value of security can be a factor to set credit limit.

Finally, I believe combining entrepreneurship training and rihn or kafalah or setting credit limit using rihn/kafalah for SMEs can be a solution to reduce the unbanked population in developing countries and inculcate banking culture. However, until we walk the talk, this suggestions might not see the fruit of the day. Therefore, bankers should start to consider provision of basic entrepreneurship training to the unbanked and use value of rihn or kafalah to set credit limits in order in support national economic goals of reducing unemployement and poverty.

AHMED EL NAGGAR: MWANZILISHI WA BENKI ZA KIISLAMU KWA MSAADA WA WAJERUMANI.

Jina la Ahmed el Naggar ni maarufu mno katika taaluma ya benki za Kiislamu au ulimwengu wa benki za Kiislamu. Jina hili ndilo pekee linalohusishwa na uanzilishwaji wa benki ya Kiislam pale Mit Ghamr nchini Misri miaka ya 1960's. Lakini pamoja na kazi na mafanikio makubwa aliyoyapata msomi huyu katika nyanja ya masuala ya fedha, machache yanafahamika kumhusu yeye hata miongoni mwa wale waliobobea katika masuala ya fedha ya Kiislamu. Ni swali zito ukumuuliza leo mtu aliyesomea masuala ya fedha ya Kiislamu kuwa ilikuwaje mtoto wa Abdul Aziz el Naggar, profesa wa masuala ya kiislamu katika jiji la mishemishe la Cairo, alikuwa ni mmoja katika watu wenye ushawishi mkubwa katika ulimwengu wa fedha wa Kiislamu. Unaweza usipate jawabu au wachache sana wenye kufahamu maisha ya msomi huyu.

Kutokana na upungufu huu, hususani kwa wazungumzaji wa lugha ya Kiswahili nimeonelea nifunguke kidogo kwa kuwaeleza yanayofahamika kumhusu msomi huyu na namna alivyofanikiwa kuanzisha benki ya kuweka akiba chini ya misingi ya Kiislamu katika kipindi ambacho watawala wa nchi ya Misri walikuwa wanakabiliana na ushawishi wa vikundi vyenye mlengo wa Kiislamu nchini humo.

WAKULIMA WA MISRI-FALLAHEEN.

Ahmed Naggar, ni msomi aliyehitimu mafunzo yake ya uchumi katika mji wa Cologne nchini Ujerumani alijifunza mambo mengi pamoja na kujuana na watu wengi ambao walikuwa na msaada mkubwa katika mpango wake wa kuwa na utaratibu wa kibenki wenye kuzingatia Sharia ya Kiislamu kwa ajili ya kuwasaidia wanyonge na wakulima masikini wa Misri ambao hadi leo wanajulikana kwa jina maarufu la Fallaheen. Wakulima hawa na wafanya biashara ndogo ndogo kama ilivyo leo hawakuwa na dhamana ya maana ya kuweka benki ili waweze kupata mikopo. Benki za Misri hazikuwa kwa ajili yao na hata kufukuzwa wanaposogelea majengo ya benki hizo. Njia pekee ya wao kuweza kupata mikopo ni kwa kupitiya watu wajanja na wanyonyaji ambao walikuwa tayari kuwapa mikopo lakini kwa riba kubwa sana kuliko iliyopo katika mabenki. Wanaokubali kukopa hawakuweza kujikwamua kutoka katika mzunguko wa madeni ya kila mara.

Naggar alichukizwa sana na riba na unyonyaji huu uliokuwa ukifanywa na wakopeshaji binafsi na kuhamasika kudidimiza utaratibu wao wa kinyonyaji kwa kuja na utaratibu ambao utawawezesha wakulima si tu kukopa bila riba bali kuweka akiba kama sharti la msingi la kukopa.Dhamira yake ilikuwa kuanzisha benki kwa ajili ya wakulima na watu masikini.

Hakukuwa na namna ya kuanzisha benki isiyojishughulisha na riba, yenye kuhimiza kuweka akiba ili kukopa (Saving Bank) na kuwajali masikini wakati huo katika nchi ya Misri na wala hakukuwa na mfano wa kuiga wa kuanzisha na kuendesha benki ya Kiislamu katika miaka hiyo ya 1950's. Bahati nzuri, mahali pekee pa kujifunza uendeshaji wa benki za kuweka akiba ilikuwa nchini Ujerumani kwa kuwa benki hizo zilishatimiza miaka mia moja katika shughuli zake na kwa mafanikio katika nchi ya Ujerumani. Kujifunza taratibu za benki hizi haikuwa jambo gumu kwa Naggar kwa kuwa alishawahi kufanya kazi katika moja ya benki yenye utaratibu huo iliyokuwa ikifahamika kwa jina la German Kreissparkasse Koln au Cologne Saving Bank.Alikuwa amehamasika na benki hizi kwa kuwa zilikuwa zinajihusisha na watu wa vijijini mahala ambapo yeye alikusudia benki yake ihudumu katika nchi ya Misri.

Nchi ya Misri ni yenye wakulima wengi wadogowadogo na wakiishi vijijini wasiokuwa na mitaji na hivyo Naggar alikusudia kuwasaidia watu hawa masikini kwa njia ya kuwa na benki ambayo itahimiza uwekaji wa akiba na kisha benki kuziwekeza katika miradi yenye faida, kisha faida hiyo itagawiwa kwa wakulima na hivyo kuweza kunyanyua kiwango cha maisha yao.

Naggar alikuwa ni mtu mcheshi na mchangamfu sana na mweye uwezo mkubwa wa kushawishi watu ili wamsaidie katika mipango yake. Mmoja katika watu waliovutika na mpango wake huu alikuwa ni msomi Bw.Gunter Klower, akifundisha uchumi. Haikuchukuwa muda bwana huyu alikuwa rafiki mkubwa na Naggar akimtembelea nyumbani kwake kama sehemu ya familia. Mipango mingi na majadiliano juu ya uwanzishwaji wa benki ya kiislamu ilikuwa ikifanyika hadi usiku wa manane katika meza ya chakula jikoni, katika nyumba ya Bw. Gunter. Wakati mwingi marafiki wa familia ya Gunter kama vile Bw. Haider Dewar-alipata kuwa waziri wa fedha wa Afghanistan,Bw. Wolfgang Hohmeyer na Bw.Martin Gester walikuwa wakishiriki majadiliano haya.

Urafiki wake na Bw.Klower ulikuwa wa kushibana sana na bwana huyu ndiye aliyekuwa mfadhili wa fikra ya kimapinduzi katika benki ya kutoa huduma za benki katika gari aina ya VW (VolksWagen). Fikra hii ya kutumia gari ilikuja kufaa sana katika uendeshaji wa benki ya kiislamu kwa kuwa ilimuwezesha Naggar kufika sehemu mbalimbali za vijijini na kutoa huduma ya kibenki. Hiki kilikuwa kipindi ambacho mambo yote ya kibenki kama vile mikopo ilikuwa lazima ruhusa itoke Cairo, mji mkuu tena kwa kutoa rushwa( Bakhshees). Naggar ilibuni utaratibu wa kuwapa mamlaka na maamuzi wakuu wa kamati za vijiji (decentralized system), mkulima mwenye shida ya pesa atasema mbele ya kikako cha kijiji na wazee wa kijiji wataamua nani apewe mkopo.

PESA ZA KUANZISHA ZILITOKA WAPI?

Ili uwe na benki ni lazima uwe na fedha za kuanzisha na wakati huo kuwa na ushawishi wa kisiasa. Kwa uhodari wake wa kujieleza na uaminifu wake alikwisha jijengea akiwa ujerumani, aliweza kupata fedha kutoka katika jumuiya ya mabenki ya akiba ya ujerumani na serikali ya shirikisho ya ujerumani. Wajerumani walichukulia majaribio ya kuanzisha benki ya akiba nchini Misri kuwa ni jambo la kimapinduzi na zuri kama sehemu ya utoaji wa msaada wa kifedha. Msaada huu waliuchukulia kuwa ni mradi kabambe wa kufikishwa fikra na ushawishi wa ujerumani katika nchi ya kiarabu. Hivyo waliuita mpango wao kuwa ni “Development of a regional savings
bank sector in Egypt”. Kwa kweli haijulikani ni kwa namna gani siasa za ujerumani zilipelekea kufanya maamuzi ya kuupa pesa mpango wa Naggar katika kipindi kigumu cha vita baridi iliyokuwa ikiendelea katika siasa za kimataifa. Pamoja ha hiyo, serikali ya ujerumani ilikubali kuwapa mafunzo ya kiufundi wafanyakazi 20 katika benki hii chini ya Naggar na kupeleka wataalamu watatu wa masuala ya benki za akiba kwa ajili ya ushauri na usaidizi.

Sasa kuishawishi serikali ya Misri ilikuwa ni jambo zito sana ili mradi huu uweze kuanza. Naggar aliepuka sana kutumia jina la Uislamu katika kuelezea mradi huu ukizingatia kuwa wanasiasa wa ngazi za juu wakishughulika kupunguza ushawishi wa uislamu katika siasa za nchi hiyo hususani baada ya kukoswa kuuliwa kwa Gamal Abdi Nasser katika miaka hiyo ya 1954 lawama zikiwaendea wafuasi wa udugu wa Kiislamu (Muslim Brotherhood). Mambo yalikuja kusonga mbele baada ya kutumia wanafamilia wa Naggar ambao walikuwa na ushawishi kwa Mkuu wa Idara ya Upelelezi ya nchi hiyo maarufu kwa jina la Mukhabaraat ambaye alikuja kumtambuslisha Naggar kwa maafisa wa ngazi za juu katika wizara ya mambo ya uchumi. Baada ya muda, fikra na mradi wa Naggar ulipata ruhusa na serikali ya Misri ilichangia paund za misri elf 60 kwa ajili ya mradi huu.

Kwa hakika kabla ya kupewa fedha na umoja wa mabenki ya akiba nchini ya ujerumani Bw. Walter Quade, mwenyekiti wa benki ya akiba ya Frankfurt aliuuliza swali la wazi; kuweka akiba bila ya riba, tueleze namna inavyofanya kazi? Kwa mara nyingine Naggar aliweza kuwashawishi hata wale waliokuwa wakimkosoa kwa kuelezea utaratibu wa kugawana faida au hasara katika Sharia na kuwa huo ndio msingi wa uendeshaji wake. Akiba zote ni vyema zikawekezwa katika benki za vitenga uchumi au miradi ambayo itaamuliwa na wanachama wa kijiji husika. Faida itakayopatikana itagawiwa kwa wale walioweka fedha zao na ikitokea hasara itabebwa na wanachama wa kijiji husika. Kwa hakika maelezo yake yaliweza kuungwa mkono na serikali ya ujerumani na jjumuiya ya benki za akiba za ujerumani kwa kupewa kasoro robo milioni DM (DEUSTCHMARKS).

KUANZA KWA BENKI NA KUFA KWAKE.

Baada ya kupata fedha na kuungwa mkono na wanasiasa wa Misri, Naggar na marafiki zake wa ujerumani wa walifika Cairo mwaka 1963. Naggar alichagua sehemu iitwayo Mit Ghamr, karibu na Nile Delta kaskazini mwa Cairo na kuwaendea wakulima na wakuu wa vitongoji pamoja na maimamu ili kuwaelezea mpango wake.

Kwa mara nyingine, ucheshi wake na ushawishi wake mzuri ulimuwezesha si tu kuanzisha benki lakini mpaka kuiendesha. Aliwashirikisha sana maimamu wa sehemu za vijijini kuitangaza benki yake isiyotoza au kutoa riba. Maimamu walikuwa na kazi ya kuishauri benki na kuhamasisha watu wajiunge kwa wingi. Njia hii iliwezesha ndani ya mwaka mmoja kuwa na akaunti 25,000 zenye amana za wateja zifikazo nusu milioni DM. Benki ilianza kukua kwa kasi na kufungua matawi sehemu nyingine kama vile Dakahlia, Zifta na Cairo, lakini kukua huku kulileta changamoto kubwa. Wafanyakazi wa benki walikabiliwa na amana nyingi za wateja lakini wakiwa na uhaba wa miradi ya kuekeza ili kuleta faida.

Changamoto ya pili ilitokana na waendesha benki za riba na wanasiana kuingiwa na woga. Waendesha benki za riba waliona mafanikio ya benki hii yanaweza kupelekea kupigwa marufuku kwa riba. Wanasiasa wakihofia watu kuvutiwa na utaratibu huu na kutaka taratibu za kiislamu zitumike kuendesha mambo ya nchi. Matokeo yake mwaka 1969, matawi yaliokuwa yakifanya vizuri yalilazimishwa kuungana na benki ya serikali iitwayo Nasser Social Bank na hapa ndio ikawa mwisho wa jaribio la kwanza la kuanzisha benki ya Kiislamu nchini Misri.

HAIKUWA MWISHO WA NAGGAR.

Kufa kwa jaribio hili halikuwa mwisho wa Naggar. Kwa hakika alikuwa amekifanya kitu ambacho hajafanya mtu mwingine kabla yake na fikra na jaribio hilo likawa ndio chachu ya kuibuka kwa benki za Kiislamu. Alionesha kwa vitendo kuwa kuna njia nyingine ya kuweza kuhamasisha uwekaji wa amana (mobilisation of deposit) chini ya utaratibu Kiislamu wa kugawana faida na hasara. Jambo hili lilipelekeya kuonekana kwa uwazi kuwa ipo namna ya kuepuka benki za riba.

Naggar aliendelea na fikra yake hii na kumshawishi tajiri Prince Mohammad Faisal Al Saudi na Sheikh Saleh Kamel kuanzisha benki ya Kiislamu. Price Mohammad Faisal chini ya msaada wa Naggar aliweza kuanzisha benki ya kiislamu nchini Misri mwaka 1975. Ushawishi wa Naggar uliweza kumpatia uungwaji mkono na Waziri wa masuala ya dini na wakfu wa nchi ya Misri Sheikh Shaarawi, ambaye kwa wadhifa wake aliweza kushawishi kupitishwa kwa sheria mpya katika bunge la nchi hiyo. Hizo sheria mpya ndiyo ziliwezesha kustawi kwa Faisal Islamic Bank. Utaratibu wa kiislamu uliweza kuvutiya serikali nyingine ulimwenguni na Naggar na Price Faisal wakaweza kuanzisha benki hii katika nchi ya Sudan, Pakistan, Switzerland, Bahrain na Cyprus.

Wawili hawa waliungana kwa ajili ya kuanzisha benki za kiislamu na piya walikuja kuwa marafiki wakubwa na kuongozana pamoja katika safari muhimu hadi kuja kufanikiwa kuanzisha Islamic Development Bank (IDB), benki iliyochini ya umoja wa nchi za kiislamu duniani (OIC) na ambayo ilipata fedha nyingi kutoka kwa familia ya Al-faisal.

Vilevile, Naggar alisimamia uanzishwaji wa taasisi ya ushauri juu ya uchumi na benki za kiislamu iitwayo, International Association of Islamic Banks (IAIB) hapo mwaka 1977 ambayo alihudumu kama Katibu Mkuu. Kazi kubwa ya taasisi hii ilikuwa kushawishi viongozi wa kisiasa na kijamii kuunga mkono benki za kiislamu na kutoa ufumbuzi wa changamoto za kiutendaji zinazozikabili benki za kiislamu.

Kwa hiyo leo hii wakati tukishuhudia mafanikio makubwa katika masuala ya kibenki ya kiislamu, ni muhimu kukumbuka mchango mkubwa wa bwana huyu ambao unaenda mbali zaidi ya benki za kiislamu, na kufikiya kuwa ndiye mwanzilishi wa Islamic micro-finance na kwa kuzibadilisha jamii za waislamu kuja kuwa ni jamii zinazotumia huduma za kibenki. Naggar atakumbukwa daima kwa juhudi hizi baada ya miaka mingi tangu alipofariki mwaka 1994.


Chanzo.
Makala hii ni tafsiri isiyorasmi ya makala ya Bi Rebecca Schonenbach na Gerd klower yenye anuani 'Ahmed Naggar-the pioneer of Islamic Banking.'iliyochapwa katika "Bulletin" ya The European Association for Banking and Financial History mwaka 2014.