Islamic Bancassurance and Wealth Management Azman Ismail azmanwong@yahoo.com www.iifin.com

What is Bancassurance? Bankassurance Allfinanz Merge between banking and insurance Allfinanz All financial services under one roof Financial supermarket azmanwong@yahoo.com

What lead to the growth? Main reason Regulatory barriers between banking and insurance have diminished Results in more “friendly” environment azmanwong@yahoo.com

Other reasons… Banks =>one method to increase deposits Insurers => alternative modes of distribution due to high agency costs Insurers own and control relationships with customers. Low expense ratio Cross selling of services azmanwong@yahoo.com

Regulation & Market Leaders USA Financial Services Modernization Act of 1999 Citigroup UK Financial Services Act HSBC France most significant development Credit Agricole Malaysia BAFIA 1989 => banking, finance company, merchant banking, discount house and money-broking businesses Maybank azmanwong@yahoo.com

USA Citigroup 100 million customers 100 countries Total assets of $ 800 Billion and total revenues of $ 90 Billion 15% contributed by the insurance 16% of income thru’ insurance. azmanwong@yahoo.com

Citigroup’s subsidiaries Citi Bank Salomon Smith Barney (CitiFinancial) SSB Citi Asset Management Group Salomon Brothers Asset Management, Smith Barney Asset Management Citibank Global Asset Management. Travelers Property Casualty and Travelers Life & Annuity azmanwong@yahoo.com

Travelers Total assets > $ 50 Billion Total annual revenue >$ 10 Billion Net annual profit > $ 1 Billion. Travelers contribute 15% of Citigroup net profit azmanwong@yahoo.com

UK HSBC Group > 5,500 offices in 80 Countries Insurance comprises 8% of group profits HSBC Insurance Holdings => back office operation administration, underwriting, product development, sales training and compliance azmanwong@yahoo.com

HSBC Insurance Holdings General Insurance Underwriting; Life and Pensions Insurance Underwriting; General Insurance Broking; Personal Financial Services Advisory and Consultancy; Medical Insurance Underwriting; Insurance Agency; Risk Management services, (including captive insurance management). azmanwong@yahoo.com

France 70% of new business 60% of total premiums Sogecap (Societe Generale) Predica (Credit Agricole) Natio Vie (BNP) Credit Mutuel 1970 1980 1990 2000 azmanwong@yahoo.com

Credit Agricole leading retail bank one family out of three 25% market share of mortgage lending, 21% market share of banking savings collection, 11% market share of life insurance. Assets >$500 billion azmanwong@yahoo.com

Predica Total assets > $60 Billion in 1999; Gross premiums > $12 billion; Shareholders funds > $2 billion. Net income > $150 million. Expense ratio < 5% (compared with 25%-30%) Distribution channel - 12,000 bank employees Policies > 5 million, Policyholders > 3.5 million. azmanwong@yahoo.com

Malaysia Maybank From Bancassurance to Islamic Financial Supermarket Wealth Management azmanwong@yahoo.com

Flashback… WEALTH MANAGEMENT/ FINANCIAL PLANNING Product -Separated Premium Channel Banks & Financial Planners PROTECTION & SAVINGS Market -Sophisticated Product -Fused Premium Channel - Agency Market -Fairly Simple azmanwong@yahoo.com

Bancassurance  Banks Agency  Financial Planners Channel Banks & Financial Planners Financial Planners azmanwong@yahoo.com

Between Bancassurance and Agency System WEALTH MANAGEMENT Banks FINANCIAL PLANNING Financial Planners azmanwong@yahoo.com

From Transactional Banking To Wealth Management Private Wealth Management Private Banking Preferred/Priority Banking Transactional Banking azmanwong@yahoo.com

Trends In the year 2000 alone, the figure hit $13.6 trillion, and is currently still growing at a rate of 30 percent per year. In fact, there is now an emerging consensus in the banking world that, in order for top banks to stay lean, they must beef up their private banking portfolio Citibank, Chase Manhattan and Merrill Lynch are currently managing more than $100 billion each.

“Wealth management has evolved rapidly over the past three years “Wealth management has evolved rapidly over the past three years. Transparency, globalization and the growth of an entre- preneurial culture have led high net-worth clients to demand a new type of private bank. Such a bank needs a global presence, innovative investment ideas and strong investment banking capabilities.” - EUROMONEY azmanwong@yahoo.com

azmanwong@yahoo.com

EUROMONEY DEC 2006 Private banks have never had it so good. Every region in the world offers a growth opportunity. Clients want an ever-increasing array of products and services. This leads to intense competition, evident in Euromoney’s latest annual private banking survey. But is further consolidation inevitable? azmanwong@yahoo.com

Who’s Who In Wealth Management azmanwong@yahoo.com

Back To Maybank… Client Insurance, Trustee Services, etc Banking Services, Investment Services etc azmanwong@yahoo.com

Bankatakaful Model BANK INSU- RER azmanwong@yahoo.com

From Banka To IWM BANK OTHER OTHER INSURER OTHER OTHER azmanwong@yahoo.com

Client-based model CLIENT INVEST MENT ZAKAT /TAX LEISURE FAMILY ETC BUSINESS & MGMT TRUSTEE SERVICES LOAN/ OD/ CARD azmanwong@yahoo.com

IWM Tools BACK OFFICE ISLAMIC WEALTH MGR PRO- CLIENT DUCTS SOFT CLIENT WARE CLIENT INFO & NEWS azmanwong@yahoo.com

Islamic Concept of Wealth azmanwong@yahoo.com

Islamic Concept of Wealth Management azmanwong@yahoo.com

The Software ANALYSIS CALCULATORS INTEGRATION ITERATION GENERATION FARAID FARAID HAJ HAJ EDU. EDU. RETIRE. RETIRE. ZAKAT ZAKAT TAX TAX azmanwong@yahoo.com

The Future Model? TAKAFUL INVEST MENT ZAKAT /TAX BROKING ASSET MGMT TRUSTEE SERVICES BANKING azmanwong@yahoo.com

Wassalam azmanwong@yahoo.com