Citibank Lunches New Islamic Banking Product in Malaysia.



Citibank Bhd expects 10,000 customers to sign up for its newly launched Islamic banking deposit product, Citibank Guard Savings Account-i, within two years.

Its country business manager Michellina Triwardhany said the bank was the first financial institution in Malaysia to launch the Syariah-compliant savings account that used the Wakalah concept, combining returns on savings and takaful coverage.

Targeted towards Muslims and non-Muslims, the product provides critical illness coverage up to RM100,000 sum assured, depending on the average monthly balance, and death and total permanent disability coverage of up to RM150,000.

The product is an improved version of the bank's current Islamic banking savings account which is based on the principle of Wadiah or safe custody, Citibank said.

Triwardhany said the bank would invest the money from the new savings accounts in Syariah-compliant activities in an efficient manner.

Once successful in Malaysia, Citibank plans to launch the same product in Brunei, Indonesia and Middle East countries, she said.

The bank expects a 20 percent annual growth in its Islamic banking business over the next two to three years, Triwardhany said.

"As more people become savvy investors, Islamic wealth management will become more significant and relevant to this growing segment," she said.

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