Standard Chartered has used Kuala Lumpur as the launch pad for the banking group’s global brand name for its Islamic banking products and services, in a move to tap into the US$1 trillion (RM3.46 trillion) Islamic funds market.
Standard Chartered Bank Malaysia Bhd’s (StanChart Malaysia) head of Islamic banking Azrulnizam Abdul Aziz said the launch of the brand name – Saadiq, which means truthful in Arabic – was part of its global efforts to boost its Islamic banking business.
Saadiq would serve as a platform for the eventual setting up of an Islamic banking subsidiary in the near future, he said in Kuala Lumpur after the launch of Saadiq and Saadiq Account-i on April 9.
Earlier, StanChart Malaysia’s chief executive officer Julian Wynter said in his speech that Saadiq was a fitting testament to the range of first-to-market innovative products and services offered by the bank.
In his speech read out by Azrulnizam, Wynter said the Islamic banking team would continue to offer these products across the StanChart network.

“StanChart is aware of the significance and magnitude of Islamic funds available globally – estimated at between US$600 billion and US$1 trillion. All major international banks have begun Islamic banking initiatives, and have in fact doubled up efforts of late.
“By late 2009, up to 50% of total savings of Muslims worldwide are expected to be managed under Islamic banking,” said Wynter, adding that StanChart’s launch of Saadiq was to support Malaysia’s effort to be part of the growth.
Azrulnizam said the bank targeted to increase its Islamic banking assets to 20% of the bank’s total assets by 2010.
For its financial year ended Dec 31, 2006 (FY06), its Islamic banking assets were RM2.04 billion or 5% of the bank’s total assets. StanChart Malaysia also wanted to double its Islamic banking assets in FY07, he said.

The bank would launch four more Islamic banking products, two each from retail and corporate banking, by year-end, Azrulnizam said.
StanChart was the first foreign bank to offer an Islamic banking window in 1993. It has introduced 25 Islamic banking products, including the Saadiq Account-i, which will be available by end-April.