Innovating Islamic Finance

Executive Manager of Wealth Management and Private Banking at Kuwait Finance House-Bahrain, Rashid Alkhan

CAN YOU TELL US ABOUT THE NEW KFHBAHRAIN WEALTH APP? WHAT ARE ITS MAIN FEATURES?

The KFH-Bahrain Wealth App is a dedicated wealth management application that provides our clients with a comprehensive overview of their investments, accounts, cards, and financings, all on one convenient platform. What sets this app apart from our original version, which catered to retail clients, is its focus on managing client portfolios in an easy and intelligent manner. It created a personalized journey for our valued wealth management clients enabling them to manage virtually all their assets on a single platform. The new app offers a consolidated view of all client holdings, including accounts, time deposits, sukuk investments, instant reports and more. This information is readily available as a snapshot summary easily accessible at their fingertips. Additionally, the app delivers notifications to alert users about new investment opportunities. It also simplifies zakah calculations, which was previously a manual task many clients found challenging; Zakah calculations are now calculated automatically. We have a strong pipeline of new features which will be launched soon and are excited about expanding the app’s services.

IN 2022, YOU LAUNCHED KFHB WEALTH AS A DIGITAL WEALTH MANAGEMENT PLATFORM. HOW WOULD YOU EVALUATE ITS PERFORMANCE THUS FAR?

We have received excellent feedback regarding the performance of KFHB Wealth since its launch. A majority of our investors are actively using the platform. They are processing all their banking needs in addition to viewing their investments in one place. Moreover, we recently partnered with Beban to host their crowdfunding platform on the KFH-Bahrain Wealth App. Beban is a subsidiary of Hope Fund, a fund established by a Royal Decree with the vision to invest in local entrepreneurs who are looking to develop, grow or expand their business ideas with the goal to spur a culture of entrepreneurship amongst the community. Through this partnership our clients and investors can access through the app various investment opportunities in the region in a seamless manner. The investment process is straightforward, and individuals can start investing even with small amounts. There has been a significant surge in users, not only from our existing bank clients but also from retail customers who aspire to invest in and support these projects.

WHAT STRATEGIES DOES KFH-BAHRAIN EMPLOY TO ATTRACT AND RETAIN HIGHNET-WORTH INDIVIDUALS (HNWI) AS CLIENTS?

KFHB Wealth Management has become a trusted name in the market with an extensive network of clients. Being one of the early movers in this space, overall portfolio and assets-undermanagement have been growing steadily over the years with high investment volumes. Our approach revolves around continuously introducing innovative products, services, and solutions for our clients. We have offered a unique suite of products and services that are in line with clients’ return expectations, liquidity needs, and risk profiles. We benchmark ourselves against renowned international banks, aiming to provide services that exceed our clients’ expectations within our region. In addition to proprietary products, we actively seek partnerships with specialized managers which enables us to offer our clients access to the best-in-class opportunities in various sectors and geographies worldwide.

WHAT CHALLENGES DO YOU FACE WHEN IT COMES TO ASSESSING AND MANAGING INVESTMENT RISKS FOR CLIENTS?

As we serve a diverse clientele, including seniors, retirees, doctors, youth, family offices, and institutions, each client possesses a unique risk profile, liquidity needs, and return expectations. Some clients possess more sophistication in financial matters, while others may require more guidance. Raising awareness about investment risks and educating clients is an integral part of the business. It is crucial for us to provide detailed and documented information to ensure clients fully understand their investment decisions and feel comfortable with them. Transparency and honesty are of utmost importance to us, as our clients place their trust in us.

WHAT MEASURES DOES KFH-BAHRAIN HAVE IN PLACE TO ENSURE COMPLIANCE WITH WEALTH MANAGEMENT REQUIREMENTS IN THE KINGDOM?

Full compliance with regulatory and industry requirements are ensured at times by the internal Compliance and Risk Management teams. They ensure adherence to applicable laws, oversee various aspects of risk management, and put into effect the necessary procedures and mechanisms required to comply with the applicable standards, and regulations. As a bank, we maintain internal controls regarding exposure limits, financing amounts, and financing rates provided to clients. These decisions undergo review by committees and adhere to both our internal policies and those set by the Central Bank of Bahrain.

HOW DO YOU ENVISION THE EVOLUTION OF THE WEALTH MANAGEMENT SECTOR IN THE FUTURE?

The wealth management sector is experiencing exciting innovations globally such as robo-advisory and the use of artificial intelligence (AI) for asset allocation strategies. Many discussions revolve around how these technologies will revolutionize the industry. However, we believe that they will not entirely replace traditional practices. For instance, in terms of relationship management, maintaining a human connection with clients remains crucial. Clients still value personal interactions with professionals who understand their needs and still prefer to engage with them in a personal manner. Building trust through these human connections plays a vital role that cannot be fully replaced by technology.

For more information call 77 000 500