Bank Is­lam un­fazed by de­vel­oper loans pro­posal

> It will con­tinue to fo­cus on its tar­get mar­ket – the mid­dle in­come seg­ment

The Sun (Malaysia) - - SUNBIZ - BY WAN ILAIKA MOHD ZAKARIA

KUALA LUMPUR: Bank Is­lam Malaysia Bhd said the pro­posed move to al­low devel­op­ers to pro­vide loans to house buy­ers will not have a se­vere im­pact on the bank, as it will con­tinue to fo­cus on its tar­get mar­ket.

“For us, we don’t see any re­duc­tion in (our) ap­proval rate, mainly be­cause our tar­get mar­ket re­mained sta­ble,” its deputy CEO Khairul Ka­marudin told re­porters af­ter launch­ing the bank’s Visa In­fi­nite Business Credit Card-i (business card-i) here yes­ter­day.

“Our tar­get mar­ket has al­ways been the mid­dle in­come (seg­ment) and we will con­tinue fo­cus­ing on our tar­get mar­ket and we are see­ing the same ap­proval rate (go­ing for­ward),” he added.

Khairul said the bank’s ap­proval rate last year was 70%, and slightly bet­ter this year at 71%, to date.

He said the bank has not ex­pe­ri­enced high loan re­jec­tions de­spite the cur­rent un­cer­tain eco­nomic con­di­tions.

“Peo­ple (bor­rower) who are el­i­gi­ble last year are also el­i­gi­ble this year. For the ones who have their ap­pli­ca­tions get re­jected are maybe for the ‘high ticket’ prop­er­ties,” he added, not­ing that the bank is more fo­cused on pro­vid­ing loans for af­ford­able hous­ing.

Ear­lier, Khairul said the bank ex­pects to dou­ble its to­tal rev­enue from the credit card seg­ment to 10% in the next three years, from 5% cur­rently, with the launch of its business card-i that al­lows hold­ers to sep­a­rate their per­sonal and busi­ness­re­lated spend­ing.

Business card-i, which is Asia Pa­cific’s first syariah-com­pli­ant business credit card, is tar­geted at large cor­po­ra­tions and small and medium en­ter­prises in the coun­try.

Credit card ben­e­fits in­clude a 20-day profit charge free pe­riod, no com­pounded fi­nance charges, life­time an­nual fee waiver, com­pli­men­tary ac­cess to Plaza Pre­mium Lounge in Malaysia and Sin­ga­pore and free taka­ful travel cov­er­age up to RM2 mil­lion and free taka­ful pur­chase pro­tec­tion up to RM10,000.

“With this pres­ti­gious business card, we hope to reach 10% of our business customers from our cur­rent cor­po­rate and com­mer­cial cus­tomer base of about 200,000 clients in the first three years of the launch,” said Bank Is­lam man­ag­ing direc­tor Datuk Seri Zukri Sa­mat.

Zukri (right) and Visa Europe gen­eral man­ager Tolan Steele at the launch of the Bank Is­lam Visa In­fi­nite Business Card yes­ter­day.

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