FNBB’S islamic banking unit launches new product
First National Bank Botswana has expanded its Islamic Banking offering with the launch of a new product, Islamic Term Deposit.
The product is designed to offer an alternative form of saving and investing that operates separately from other conventional accounts. Through this product customers are offered a monthly profit share that complies with Islamic Finance principles. Launching the product FNB Commercial Director, Mike Honeywell outlined that the product features include a choice of varying investment periods from 30 days to 36 months, unlimited investment amount as well as monthly profit share that is reinvested into the investment account. “As a Bank that continues to offer customer- centric solutions, we are very excited to introduce this new product to the market. The unique features of this product make it a viable option for any client looking for an alternative form of banking and investing,” said, FNBB.
Honeywell stated that Islamic Banking products are not exclusively for members of the Muslim community but are available to all who choose it, irrespective of religious denomination. He said the Bank continuously develops and grows the Islamic Banking portfolio to meet the diverse needs of customers. FNBB is currently the only bank in the country that offers Islamic Banking and there is a strong customer demand for the offering. Under Islamic Banking, the bank offers Personal Cheque Accounts, Business Cheque Accounts, Vehicle and Asset Finance, Residential Property Finance, Commercial Property Finance and Savings and Investments.
FNB Islamic Banking products comply with Islamic Law and have been endorsed by our Shari’ah Advisory Committee. The Shari’ah Advisory Committee, approves reviews, supervises and monitors the activities of FNB Islamic Banking in the country to ensure compliance with Shari’ah ( Islamic Law). The bank introduced Islamic Banking products in 2016 with an objective to increase its revenue streams and tap into the niche market as it is deemed the fastest growing sector within the financial industry with a year on year growth of between 15- 20 per cent. However, the Islamic banking do not have much differences to conventional banking except that its products must be approved by a Shariah board, consisting of independent Muslim scholars, and customer funds in those products may be used only in Shariah- compliant investments, which exclude industries such as alcohol, gaming and interest- based finance.