March 16, 2013
Publication: BAHRAIN TRIBUNE
Description: English Daily, Broadsheet, Bahrain
Circulation: 10,000
Charge card at US Muslim bank
KLEIN Maus and Shire, the first full service Muslim-owned investment bank in the US, is to introduce the first Islamic equity (charge) card in the United States in a co-branding venture with a leading international card issuer. “The charge card will initially target 6-10 million creditworthy Muslims living in the US. The essence of the card is full payment within the billing cycle, and the late payment fees are tiered to pre-disclosed dollar amounts,” said Mohamed All Khan, Chairman of KMS. “We are confident that the average Muslim will be interested in the charge card because its mechanism is consistent with Islamic Law (Sharia) prohibiting interest. Many Muslims have multiple cards issued by Visa and MasterCard, for example. Persuading these individuals to switch will therefore be a good pilot programme. We have undertaken extensive market research on the spending profiles of Muslims in the US, and we have a database of nearly one million. We are confident that they are ready for a number of financial products,” he added.
KMS is also considering Islamic mortgages, mutual funds and vehicle equipment leasing with the established financial institutions on a co-branding or partnership basis. KMS has recently approached several institutional investors in Gulf and Southeast Asia, inviting them to participate in Islamic product development. The company became the first full service Muslim-owned investment bank in the US in March 1996, serving 3000 institutional and high net worth investors in America and around the world. It established last year a business development division for Islamic instruments and investments.
