ADI-CF: First Sharia-Compliant Card “Takka”
Updated 9/12/2023 8:00:00 AM
Arab Finance: Consumer finance companies in Egypt are significant players in the country's market revenues. The recent digital developments in the sector are supporting the financial inclusion drive and benefiting banks by allowing them to lower costs and increase their reach. Consumer finance in Egypt rose by approximately 7% to EGP 7.32 billion in the second quarter (Q2) of 2022, compared to EGP 6.84 billion in Q1 2022, according to data from the Financial Regulatory Authority (FRA).
Arab Finance took the chance to interview Yasmine Helal, CEO of ADI Consumer Finance. The company is the first Sharia-compliant company owned by Abu Dhabi Islamic Bank (ADIB). She discussed the motives behind the company and its first product “Takka” card.
1-What were the strategies and needs behind creating ADI Consumer Finance?
The creation of ADI Consumer Finance (ADI-CF) is a reflection of ADIB's commitment to staying at the forefront of the evolving banking landscape. It is driven by the need for pioneering innovation that stems from a solid understanding of the market and the ability to adapt swiftly to the constantly evolving needs of customers. ADIB aims to strengthen its commitment to widening financial inclusion by offering a wide-ranging and unique portfolio of Sharia-compliant financial products.
2-How much is ADICF related to ADIB Bank?
ADICF is ADIB's consumer financing arm. ADICF has just introduced Egypt's first Sharia-compliant consumer financing product, "Takka". The new introduction offers users the freedom to purchase goods in installments via any point of sales (POS) nationwide.
Alongside strengthening financial inclusion, Takka is a fully integrated digital consumer app that is very easy to use and aimed at the banked and new-to-bank segments. The registration and financing application requests on Takka require no more than a valid national ID card and a smartphone.
3-How is a Sharia-compliant company different from the usual consumer finance companies?
A Sharia-compliant company adheres to the principles of Islamic law, known as Sharia. These principles dictate that financing should only be provided for goods that comply with Sharia rules and that investments should avoid businesses involved in harmful or unethical activities. ADI-CF provides its customers with a Sharia-compliant structure that allows them to finance their goods through a Murabaha Sale Contract, as per the resolutions of its Sharia Board Committee.
4-What differentiates ADI-CF from its competitors?
Takka is a unique, quick, and easy Sharia-compliant solution, offering users the freedom to buy in installments via any POS in Egypt, along with the freedom to choose a payment plan that best suits their financial ability.
5-Who is eligible for the Takka card?
Any Egyptian with a valid national ID card is eligible to apply for and benefit from the Takka card.
6- How can cardholders benefit from the Takka card?
Takka cardholders enjoy the freedom to purchase goods in installments from more than 800,000 POS terminals in Egypt. Currently, Takka cards are issued free of charge and with zero admin fees.
7-What are ADI's plans for Egypt this year?
ADI-CF’s plans for Egypt include continued investment in digital transformation initiatives. This involves adopting new technologies to enhance customer experiences and improve operational efficiency. ADI-CF aims to develop and expand digital payment solutions and mobile banking services that facilitate convenient and secure transactions for individuals and businesses. Additionally, ADI-CF plans to navigate the regulatory landscape, collaborate with regulators to ensure compliance with guidelines and adapt to any changes in the regulatory environment.
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