Addressing the Need For Women's Banking Services in the Muslim World

Throughout the Muslim world, banks and financialWealth's Dubai hub since 2006, becoming one of the
institutions have experienced a significant rise in theirmajor wealth management recruiters in the GCC in
number of female customers in recent years. The2009. Nahed Taher cofounded Gulf One Investment
number of banks and investment companies createdBank in 2005, making her the first woman to head a
specifically for women has skyrocketed across thebank in Saudi Arabia.
Middle East. Estimated to control around $246 billionIdentifying Women's Needs
of the region's wealth (projected to hit $383 billion byAs women continue to manage their financial
2011) , women in the Middle East are regarded todayresponsibility and independence throughout the Muslim
by international banks as financial powerhouses.world, the need for new and specific banking
The recent rise in this market can be attributed toproducts and services for this market has also
the increasing role of Muslim women in the workplace.emerged. Forced to wait in line with men in many
Responsible for controlling household and familymale-operated financial institutions for decades,
finances for decades, women have also experiencedwomen throughout the Muslim world now seek a
new empowerment and freedom in how they spendprivate, personal and comfortable banking
their money. With new opportunities for education onenvironment. Women today enjoy financial institutions
the rise and more and more women entering thethat cater to their unique needs and offer enhanced,
workforce, women have become crucial targettargeted, financially compelling, and more personalized
customers to the financial industry. Banks can tap intoservices than they have ever experienced before,
this growing market by providing banking services tosuch as credit cards and loans.
their growing number of female customers and byBanks can cater to this market by offering women
training their sales and customer service personnel toextra privacy in their financial affairs and a more
better sell and service this important customerrelaxed atmosphere in which they can discuss their
segment.needs. Banks can create exclusive areas within their
The Role of Women in the Muslim Worldbranches that enable women to carry out their
It is not a new concept for Muslim women to be inbanking transactions with greater comfort and
control of the family finances, but now they areprivacy. Banks can also attract new customers by
empowered to step out of the home, cash in hand.offering women additional benefits, including exclusive
They have money to spend and invest and they arehealth privileges at renowned hospitals and health
looking for the same opportunities made available toclubs, and shopping discounts with special privileges at
men. A 2007 study by the International Financeselect stores for perfumes, clothing, accessories,
Corporation, an arm of the World Bank, found that abooks, and much more. Financial institutions truly
third of women-owned enterprises in the United Arabdedicated to expanding services to women will open
Emirates generated over $100,000 a year, comparedfemale-only branches.
to only 13% of American women-owned firms.Financial institutions can also reach this lucrative
Women on the Home Frontdemographic by employing more women. Many
Today, many Muslim women have significant liquidMuslim women would prefer to discuss their financial
assets, partly because of Islamic inheritance law.affairs with another woman who understands their
Islamic law dictates that a married woman's wealth isconcerns through personal experience. An entire
her own; spending on the household is her husband'sstaff-tellers, bankers, wealth managers, branch
responsibility. Muslim women are legally entitled tomanagers-made up of women would be welcomed
inherit and bequeath property, holding their wealth inby their female-only clientele.
their own names even after marriage, withoutTraining
obligation to contribute that wealth to their husbandWhile women-only financial institutions have been in
or their family.existence for decades, this is a new initiative for
Because Muslim women do not have to rely on theirmany institutions. The transition will require time and
husbands as their only source of funds for domesticeducation. The most effective way for banks
and household purchases, they have traditionallythroughout the Muslim world to reach this growing
managed most aspects of household finance. Today,market is to implement a top quality training program,
women throughout the Muslim world play an evencustomized to the needs of women. A training
more active role in the financial transactions of theirprogram will help all employees at a bank to become
families, giving them more of a say in terms offamiliar with this growing demographic and understand
purchasing power and decision-making authority. Withthe importance of being sensitive to the needs of
these responsibilities, women require banking servicesthese new customers. A well-educated staff will
that both understand their needs and can help themprove to their clients that the bank is aware of the
to manage the challenges they face in making theimpact of women throughout the Muslim world and is
best financial decisions for their families.ready for a change.
Women in the WorkforceAdditionally, a training program will teach bank
Throughout the Muslim world, women are enteringemployees how to successfully communicate with
the workforce and even starting their owntheir female customers while providing outstanding
businesses now more than ever. According to recentsales and service. Learning professional customer
reports, women currently run about 16,390services skills will help employees listen to their
businesses. In recent years, women have slowlycustomers' needs and answer any questions, helping
become more accepted in the workplace and havetheir female customers to feel relaxed and confident
even come to occupy senior government posts,in their banking experience. Through training,
including ministerial appointments and executiveemployees also will become familiar with the products
positions in the private sector. Once regarded asand services available for their female customers,
delicate beings that need to be protected, Muslimsuch as current account, savings accounts,
women today are being empowered to seek financialinvestment accounts, credit cards, auto finance, real
independence.estate and much more. Most importantly, employees
In 2009, Financial News released its annual list of thewill learn how to sell these products; following proper
100 most influential women in finance and for thepolicy and procedure, protecting themselves, their
first time, four Middle Eastern women were amongbanks, and their female clients.
the names included. Chosen for their profound impactFinal Word
and exemplary leadership in their industry, theseThe shifting role of Muslim women in their homes and
women represent the gender shift in this part of thein the working world provides a new market for
world. Haliza Abd Rahim, head of projectfinancial institutions. In order to tap into this growing
management for BMB Islamic UK, leads a team thatsegment of the financial industry, banks need to
oversees $10 billion of assets for some of the Middleunderstand the unique banking needs of this vital
East's wealthiest families. Maha Al-Ghunaim is chairmancustomer segment and implement a sound training
of Global Investment House, the leading assetprogram to best sell and service them. Through
management and investment banking companies intraining, banks can build a knowledgeable, professional
the GCC and the wider Middle East and North Africaand sensitive staff that is prepared to serve women
(MENA) regions. Soha Nashaat, head of Middle East,throughout the Muslim world as this market continues
North Africa and Turkey for Barclay's Wealth, of theto grow.
UK-based Barclay's Group, has been building Barclay