Retail Industry News
Muslims disconnected from retail banking
Monday, 05, April 2010
A growing pool of would-be investors and borrowers, many sitting on piles of surplus cash, others simply in need of mortgages, remains untapped by Canada’s biggest banks.The demand for Islamic financial instruments certainly exists. But beyond holding basic accounts, observant Muslims in Canada find themselves disconnected from retail banking.Despite signs a few years ago that shariah-compliant products were ready to enter the Canadian market, the niche segment has not advanced beyond infancy.
“We have immigrants who come to us and sit in our offices and tell us they have a million dollars sitting in one of the Big Five banks, in cash,” says Omar Kalair, president of UM Financial, one of the few providers of Muslim mortgages in Canada.We have people who have been renting for the last 30 years, even if they have $100,000 salaries, because they can’t buy a house,” he adds.Interest -- an essential component of Western finance -- prevents many of Canada’s one million Muslims from properly managing their assets.
