The previous short article I wrote on ‘Rebranding Islamic Banking’ has sparked much discussion, and I have received several interesting comments. One comment stands out, coming from a prominent and well-known banker. According to this banker, it is not about rebranding but rather the need for a pure Islamic banking system, a new monetary system. I wholeheartedly agree with this perspective.
This realisation has prompted me to share the challenges I have encountered over the past two years while developing a new financial home purchase structure. This structure eliminates any element of riba and is not linked to the current hybrid system that most Islamic bankers adhere to. In my opinion, the current system is merely a facade, deceiving the faithful. Also, to refer to Islamic mortgages as “Islamic death grip.” I find this term quite distasteful.
Over the last two years, I have attended numerous Islamic banking conferences worldwide, where I have had the opportunity to meet countless senior Islamic bankers, CEOs, and Sharia scholars, among others. Unfortunately, my personal experiences have left me shocked and dismayed, and I would like to highlight some of these disheartening observations:
1. Islamic bankers, in general, display limited ability to think outside the box.
2. They are unwilling to embrace new ideas that deviate from their hybrid riba-linked systems.
3. They either cannot comprehend or choose not to understand that conventional banking metrics, such as profitability and risk, cannot be directly applied to Islamic banking. True Islamic banking offers profits equal and more but differently.
4. We find ourselves surrounded by technocrats, scholars, and MBAs who are engulfed in detail, constantly comparing Islamic banking with conventional banking for the wrong reasons. They fail to recognise the reality and the true values of Islamic banking.
5. Islamic bankers often apply Western economic theories and principles that are now obsolete and have proven to be detrimental to the world and humanity. Interest rates, inflation, and currency rates are merely fabricated structural tools of manipulation created by elite bankers and governments colluding to profit a select few. Islamic banking must relinquish these theories and embrace Islamic economic principles.
6. Some individuals, driven by raw greed, possess substantial capital and insist on keeping their money and investments in riba-based accounts for selfish reasons, disregarding the welfare of humanity and Islamic values.
7. Governments of Islamic countries are engaged in ongoing battles, attempting to promote Islamic economic principles, while Islamic bankers cling to riba-based economics. Turkey serves as a pertinent example of this struggle. If BRICS can create their monetary system, what cannot be Islamic banking?
8. There is a concern among bankers about their credibility with conventional institutional peers, which prevents them from disrupting the status quo.
9. The issue of questionable fatwas also arises, as some have provided legitimacy to non-Sharia-compliant products based on technical grounds. This hampers innovation and the development of true Islamic banking.
10. Despite the numerous Islamic banking organisations operating at the country and global levels, their ability to lobby governments, whether Islamic or not, has been weak. All parties are content with appeasing the riba-based banking system for their gains.
11. With people in Islamic Banking, there is also a higher degree of ‘not invented here syndrome’ they tend to have the view that if I did not develop, it is just simply not going to work more to do with pride and envy.
The adoption and acceptance of Islamic banking have been lacklustre. Instead of blaming the consumers, it is essential to deliver pure Islamic products that are of high quality. Once this is achieved, the uptake will surpass expectations. No one willingly purchases inferior and costly products. If it means building an Islamic monetary system, do it; the money is there, but the will of the conventionalist-dominated bankers is not there.
One of the most significant aspects of my journey in building a truly pure Islamic home purchase plan is the fact that our first banking client happened to be a mainstream non-Islamic bank. It has been nearly impossible to convince Islamic banks. I had plenty of responses after my article, but every negative response for my Rebranding article came from Muslims. Let you work that out. They were eager to adopt our product and eliminate riba throughout the value chain. This situation is a sad indictment of Islamic bankers, who did very little to work with us.
Wa’qar Mirza
