banking for the unbanked

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

STRICTLY PRIVATE & CONFIDENTIALThis document is the sole property of Noor Islamic Bank PJSC and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Noor Islamic Bank PJSC. No representation is made, or warranty given, in respect of the accuracy of this information.