Question

When Al Latifi International Bank (ALIF), a subsidiary of a family-owned Gulf States Islamic bank decided to establish and to expand its branch network in Malaysia, it realized that it would have to appeal to both Muslim and non-Muslim clientele. Muslims in Malaysia makes up about 60% of the population while the rest are non- Muslims of various ethnics groups. ALIF chose to project its brand based on values acceptable to all races and religions. The values include integrity, trust and respect. The bank’s promotional strategies were based on these core values. The bank’s advertisements and promotional activities were designed to provoke debate on each value. By avoiding regular financial promises and the normal jargon, ALIF’s intention was to develop a long lasting brand culture that represents Islamic principles and an international class standard of banking. ALIF has also embarked on roadshows throughout the country to build its brand. These campaigns proved to be successful and attracted many customers. It has on its payroll non-Muslims staff including those at the top management as well as in the Board of Directors. The bank has now 17 branches in Malaysia mostly located in the urban areas and is still expanding. i) There are many brand building strategies that can be adopted by Islamic brands. What do you think the most effective strategy that the bank has adopted in establishing itself in Malaysia taking into account ALIF’s values of integrity, trust and respect? ii) Identify the possible challenges faced by ALIF when it first started its banking business in Malaysia and explain how it managed to overcome the challenges? iii) What could be learnt by the domestic Islamic banks from ALIF’s successful Islamic branding should they intend to expand their business abroad?

Answer 1

1) The best brand building strategy that the bank ALIF has adopted taking into account its values of integrity , trust and respect can be described as follows:

The very basis of the bank and the core values reflect its dedication towards running the business on the principles that do not intend to prioritize the Muslim sect by any of its operations. Its conduct and activities are based on; mutual treatment of people irrespective of the religion or race they belong to thus aiming to provide common services with no bias of any kind.

The bank through incorporating the practices free from the influence of a particular religion proves to be a service sector engaged in meeting the financial needs of people by making them stand equal in the eyes of bank in every term and field .

Keeping in mind the fact that although the place where bank operates has a maximum population of about 60% denser with Muslim community , still the bank made an clientele appeal to both the Muslim as well as the non Muslim sect which shows its values of integrity , respect for religion and trust being incorporated in its day today activities.

Moreover the bank has always maintained justice among people which is quite clear by mentioning that even the top executives as well as the staff of the bank belong to non Muslim sector leaving no doubt about its pattern of making decisions and being free from the influence of any pressure.

2) The various Challenges faced by Alif in its initial period while incorporating the business in Malaysia has been always related to its dominance of Islamic principles incorporated in its dealings that were thought to breed hatred among the religiously different sectors and hence acted as a big hurdle in its resurgence. As Malaysia is a region rich in divetsity of religion, tradition, ethnicity and race , the muslim dominated bank was considered as a threat to its integrity and peace.

​Thus the emergence of a Muslim bank in Malaysia was suspected to bring inconvenience to people belonging to other religion or the emergence of bank was considered to bring the Islamic dominance by basing on Islamic core values which might hurt their sentiments thus resulting in defiance.

The bank was successful in overcoming of this challenge by ensuring no Islamic dominance and by treating the people from any religion equally and justly.

It ensured and reflected through its promotional techniques that the operations being conducted by the bank are free from any religious influence or bias and are strictly adhere to values of integrity ,respect and trust. The bank was successful in communicating that the activities conducted by the bank are based on mutual understanding , respect for religions and importance to the traditions. The services provided by the bank will be in equal favour of all. It akso involved people from different religions to be a part of it thus encouraging religious diversity.

3) The domestic banks should learn not to breed any sentiment of favour or bias for a particular religion and separation of religious norms to that of the services being offered. Even if the Islamic principles are to be incorporated , the domestic banks need to evaluate all their strategies , policies, norms, rules and standards so as to ensure nothing among them will hurt any religious or ethnic sentiments of people inside bank or around the region or any of which should not encourage conflicts, misunderstandings and loathe between diversified people. Moreover they need to understand that compliance with the moral values , corporate ethics and social responsibility should be given priority.

Proper communication channels should be at place for ensuring the conduct of activities in favour of all and not just a particular sect.

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