> Islamic Bank of Afghanistan:
Aiming for the Top Spot
CEO: Amer Khalil-ur-Rehman
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mpowering the Afghan business community and helping local entrepreneurs seize opportunity and expand trade – Islamic Bank of Afghanistan makes a significant contribution to the country’s economic development. From its earliest days, the bank has served the Afghan private business sector with a full range of premier products and services, including cross-border transactions. Islamic Bank of Afghanistan is also recognised as a preferred partner to state bodies, multilateral organisations, diplomatic missions, and non-profit entities, amongst others. The bank initiated and supports a number of corporate social responsibility programmes such as a sustained effort to reduce the number of unbanked people and businesses in the country. The bank’s comprehensive CSR (Corporate Social Responsibility) portfolio also includes high-impact initiatives to promote gender equality and skills development. On the commercial side, Islamic Bank of Afghanistan has introduced facilities to help fund transition to renewable energy, with innovatively structured credit lines and financing solutions for solar power generators. Islamic Bank of Afghanistan is present in about 30 out of Afghanistan’s 34 provinces and maintains 32 branches in Kabul as well. The bank has also
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put in place agency arrangements to cover the remaining provinces. One third of the branches in the country belong to the banking group. In order to meet public demand and increase its outreach in an economy that is still 91% unbanked, Islamic Bank of Afghanistan has converted its conventional business to faith sensitive banking. The bank’s customer service department strives for excellence and focusses on the four “Ts” team, technology, theology, and TAT (turnaround times): Best Team (development and capacity building of staff): Islamic Bank of Afghanistan employs over 1,180 people of whom around 700 are part of the core banking staff. These professionals have received on average 25 days of training in Islamic banking and the new Islamic core banking system software. Thus far, the bank has invested over 17,500 employee training days in capacity-building alone. Remarkably, over 1,500 days have been spent by staff in overseas training programmes. Best Technology (latest state-of-the-art): The bank purchased the latest Sun T7 hardware and Oracle’s Flex Cube Core (Islamic) banking system which were deployed in two steps, going live on the first of April. The bank is now also implementing Oracle’s latest OBDX, Oracle’s Business Digital (E) CFI.co | Capital Finance International
Experience, covering latest state-of-the-art digital banking. Best Theological Banking (faith sensitive banking related to Sharia compliance in financial services in both letter and spirit): In addition to local Islamic banking regulatory requirements, Islamic Bank of Afghanistan follows accounting, auditing, governance, and Sharia standards issued by the AAOIFI (Accounting and Auditing Organisation for Islamic Financial Institutions). The bank’s manuals, systems, policies, and procedures have been developed with help from E&Y (Ernst & Young), one of the top leading consulting firms in this area. Various structural and procedural checks and controls are in also place to strengthen this. The bank maintains a Sharia Board, Sharia Department, and Sharia Advisor, amongst others. Best TAT: Customer Service Excellence equals to the sum of: best team, best technology, and best theological banking. Islamic Bank of Afghanistan wants to be the best in everything it does. In order to build the best team the bank not only focusses on capacity building but also on a healthy working environment – Islamic Bank of Afghanistan wants to become the best bank to work for. Moreover, the bank is determined to achieve excellence in the delivery of customer services by using the best technology available. i