‘Not a single cheque was dishonoured at Al-Arafah Islami Bank’
With renewed governance, digital innovation, and ethical banking at its core, Al-Arafah Islami Bank is emerging stronger than ever, proving that resilience, reform, and responsibility can restore public trust and lead Islamic finance into a sustainable future
What makes Al-Arafah Islami Bank truly stand out is this: we never needed any liquidity support from the central bank, not even during the brief period when some branches were under pressure. Every single cheque was honoured, without fail. That alone says a lot about our financial strength and institutional resilience. As we continue to transform, our focus remains clear: strong governance, the trust of our customers, and a firm commitment to ethical, Shariah-compliant banking.
A new chapter after the board reconstitution
The reconstitution of our Board of Directors marked a defining moment in our institutional transformation. It wasn't merely a reshuffling of leadership—it was a reaffirmation of our values: accountability, governance, and transparency. Since then, we have worked relentlessly to rebuild institutional integrity from within.
We overhauled our internal committees—Audit, Risk, and Shariah Governance—empowering them with greater independence and operational clarity. Centralised reporting structures were implemented to eliminate informal decision-making, and business process reengineering initiatives were launched to align products and services with segmented needs in retail, SME, and agricultural finance.
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Our centralised operational model now ensures that key functions like Risk and Credit remain independent and free from undue influence. We are also advancing entrepreneurship and grassroots development through tailored SME and agri-finance solutions. Financial inclusion, particularly in underserved rural areas, is being driven by an expanded, tech-enabled agent banking network.
Technology is central to our future. From nano-investment products to strengthening mobile financial services (MFS), we are building a comprehensive digital ecosystem. Our systems are now data-driven, and decision-making is Shariah-aligned and policy-led. These reforms have not only restored public confidence but are laying the foundation for long-term sustainability.
Winning back depositor confidence
During the broader banking sector crisis, especially within Islamic banking, our strategy to regain depositor trust rested on four pillars: transparency, continuity, central control, and direct engagement.
Before the board reconstitution, we faced deposit pressure. But the moment we took charge, we acted. Campaigns like Amwal revitalised staff morale, promoted consistent service delivery, and reconnected us with our customers. Centralised treasury governance was introduced to track liquidity in real time, while customer outreach intensified, with senior leadership, including me, speaking directly with institutional and individual depositors.
We introduced new deposit products aligned with Shariah principles, customer expectations, and digital ease. The result? Not only did confidence return, it solidified. Today, we are witnessing consistent deposit growth backed by ethical practices and innovative services.
Innovating with purpose-driven products
Our product strategy now reflects a deep understanding of depositor needs. Al-Wadiah Current Plus serves retail clients who prioritise liquidity but want value-added services. Mudaraba Savings Plus offers system-generated monthly profit sharing with full Shariah compliance, providing fixed-income clients with predictability and peace of mind.
Recognising the importance of youth in shaping the financial future, we launched Mudaraba Youth Plus, tailored for individuals aged 18 to 25. It's more than a savings account—it's a financial literacy tool embedded with ethical values and digital access. These products are not just financially sound—they're technologically robust, governed with transparency, and aligned with long-term values.
We are now developing deposit products for women's financial empowerment and structured savings with embedded advisory features—because today's depositors seek more than returns: they seek trust, clarity, and alignment with their beliefs.
Tackling loan recovery with governance and grit
Loan recovery is not just about reducing non-performing loans—it is about preserving financial discipline and institutional ethics. At Al-Arafah Islami Bank, our approach is rooted in prevention, early detection, and structured resolution.
We have transformed the credit approval process by implementing dual-layer approvals and mandatory independent feasibility assessments. Our real-time early warning system helps identify risk before it snowballs, enabling timely interventions.
For viable but distressed clients, especially SMEs, we offer customised restructuring options. For willful defaulters, we pursue legal action and enforce asset recoveries. Recovery teams operate under centralised KPIs, and we never use loan evergreen tactics to disguise problems. We face challenges head-on, with dignity and discipline.
Our vision for the future
We envision Al-Arafah Islami Bank as a benchmark of modern Islamic banking, where technology, governance, and Shariah compliance coalesce to serve society ethically and efficiently.
Our future is one of full centralisation, automation, and real-time insights. We are integrating fintech collaborations, green Sukuk, Waqf-based financing, and digital onboarding into our ecosystem. We aspire to be the bank of choice for women-led ventures, CMSMEs, and rural entrepreneurs, delivering inclusive banking at scale through smart tech and human touch.
We are also actively working with regulators to create an enabling environment where Islamic finance can flourish sustainably and transparently.
This is not just about recovery—it is about redefining Islamic banking for the 21st century. We are not only rebuilding trust—we are reshaping what it means to be a purpose-driven, forward-looking Islamic financial institution.
