First Gulf Bank Case
Contents
1.1 Overview and objective
1.2 Demographics and the UK market
1.3 Regulations and Competitors
2.1 Consumer behaviour
2.2 Strategy and Implementation
1.1 Overview and objectives
First Gulf Bank(FGB) offers corporate and retail banking ,and is the fastest growing Islamic bank in the Middle East. The banks core aim is to maximise shareholders, customers and employees values whilst providing services that meet the clients requirements.

In 2007 FGB launched an Islamic Banking window in Singapore, to take advantage of a growing Muslim Asian market. It proved a big success and FGB want to expand that success in the UK Muslim market.

In June this year FGB bought out Dubai First(a credit and loans company).And FGB now provide loans and credit cards to clients, the primary objective is to promote their credit cards. And hopefully through the campaign create awareness of the bank and brand.

1.2 Demographics and the UK market
According to the Office of National Statistics 2001,there are 1.6 million Muslims living in the UK. And has been an increase in the past seven years, with the Muslim community now being 3.3% of the UK population. Islamic finance differs from regular finance, as Islamic finance complies to the laws of Islam as well as regular national and international laws(further details in section 1.3). Islamic banking started in operations, with the Financial Standards Authority(FSA) approval in 2003.As before then there were no loans or Credit cards available to the Muslim community, without them breaking the rules of Islamic faith. There has been development and improvement in Islamic Banking within the UK, however only HSBC offers Islamic mortgages. UK Muslims do use credit cards, however they do tend to re pay what they owe straight away. As in Islamic culture receiving and paying interest is strictly prohibited.

1.3 Regulations and Competitors
The UK is a non Muslim nation, so the laws favour conventional banking. The fundamentals of Islamic banking is to view the person claiming credit/loan as a partner rather than a customer. So there is a higher financial risk, on the banks part. As in Islamic law paying/receiving interest is prohibited, as money carries no value in the religion. Although Islamic finance is perceived as more ethical trading. There are challenges facing Islamic Banking, as the system is unclear and at parts contradictory. Which makes the industry less consumer friendly, to particular economies and communities.

There are only two retail banks that offer Islamic finance, which is Loyds TSB and HSBC. However,

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Islamic Bank And Retail Banking. (June 14, 2021). Retrieved from https://www.freeessays.education/islamic-bank-and-retail-banking-essay/