Standard Chartered Private Bank has launched a
comprehensive suite of Sharia-compliant financial solutions for its
Islamic clients.
The Singapore-based private bank intends to
target Muslim high net worth (HNW) individuals around the world,
offering them a wide range of products.
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These will include among which Islamic bonds
(sukuks), fiduciary deposits, property financing, equities and
discretionary services, mutual funds (including exchange-traded
funds) and third-party structured products.
Standard Chartered said it has identified
Islamic private banking as a gap in the current market product
offering.
The Islamic banking solutions will become
available by mid June across the bank’s booking centers in London,
Geneva, Jersey and Dubai.
The services will be delivered in
collaboration with Standard Chartered Saadiq, the Bank’s Islamic
banking arm, which has more than 18 years of experience in Islamic
banking and finance and is present onshore in six different
markets.
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By GlobalData
Lack of Sharia products for Islamic
HNW
According to a report by Ernst & Young,
Islamic banking assets are growing twice as fast as conventional
banking assets and are expected to reach $1.1trn globally in
2012, 33% more than in 2010.
Muslim HNWIs are increasingly expecting Sharia
compliance in their wealth management, making Islamic wealth
management solutions a key market need, Standard Chartered
said.
“Although Islamic banking solutions have
become increasingly available, there are few viable
Sharia-compliant alternatives for HNWIs,” said Wasim Akhtar Saifi,
Standard Chartered’s global head of Islamic Banking for its
consumer banking business.
“Muslim HNWIs are restricted to the
conventional offering of traditional private banks. There is a need
to adopt a more holistic view towards wealth management for this
segment,” he added.
“The launch of Islamic financial solutions for
our private banking clients broadens the overall spectrum of wealth
management solutions available to those seeking Sharia compliance.
We plan to continue to expand the range of Sharia-compliant
solutions to address evolving client needs,” said Saifi.
Growth to come from Indonesia,
Pakistan and Bangladesh
In Asian and Middle East markets, Islamic
banking has turned into a mainstream development, increasing
visibility and regulatory support.
Standard Chartered expects a gradual
conversion from conventional banking to Islamic banking.
While Middle Eastern Islamic wealth is
traditionally booked is Switzerland, Standard Chartered sees a
growing trend of diversification to other hubs, such as London and
particularly Singapore.
The bank also expects high growth
potential for the yet underdeveloped Islamic markets
of Indonesia, Pakistan and Bangladesh.
