1 février 2017 SAAFI.FR

Potential target group for Takaful products

KT Bank is the first Islamic bank in Germany and in the eurozone, with headquarters in Frankfurt and branches in Berlin and Mannheim. The wholly-owned subsidiary of Kuveyt Turk Katilim Bankasi (Kuveyt Turk Participation Bank), which is leading the Islamic banking market in Turkey, is currently attracting the Muslim community and millions of clients interested in ethical banking in Germany alone.

KT Bank’s mission is to become the leading socially responsible and first choice house bank for clients of all religions and nationalities. With a population of currently more than 4.8 million Muslims in Germany, the country is a huge market for Islamic banking and Takaful. Net incomes of Muslim households are estimated to rise, and Muslims also have a remarkable savings rate of nearly double the national average. In addition, 41% of the Turkish Muslims in Germany consider themselves to be very religious (47% rather religious), making them a potential target group for Islamic finance products such as Takaful and bancaTakaful.

The main regulatory challenge in the European market is in terms of the banking license application process in Germany where you need to work with the German authorities and the regulator to comply with all regulatory, legal and fiscal requirements applicable for conventional banks. As for Islamic car purchases and real estate financing, one has to develop approaches to comply with the German legislation.

With the support of Kuwait Finance House as the main shareholder of Kuveyt Turk Participation Bank, KT Bank has excellent links with Turkey and the MENA region, thus creating opportunities for economic exchange and new investments.

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