Which are the best Emirates Skywards Credit Cards to earn Skywards miles?

Posted on November 29, 2022December 14, 2022 by admin

List of best Emirates Skywards Credit Cards to earn Skywards miles.

Emirates Airlines is one of the most popular airlines in the world and THE most popular airline in the UAE.

As residents we are very lucky to travel with Emirates Airlines and enjoy all the great benefits including the latest aircrafts, extensive travel routes, the best airport lounges, amazing on demand entertainment options, an entire terminal dedicated to just one airline and so on. In addition to these benefits Emirates airlines also offers one of the best airlines miles reward programs offered anywhere in the world – the Emirates Skywards miles program. As with most airline miles programs Emirates Skywards miles can be used to purchase tickets, to upgrade tickets already purchased as well as to make other retail purchases.

While one can earn miles by simply buying tickets for Emirates airlines flights another very popular way to earn Skywards miles is by using specific credit cards which offer Emirates Skywards miles as rewards against purchases made on the credit card. This is a very popular way to earn additional Skywards miles and almost all leading banks in the UAE offer Skywards credit cards which can be used for this purpose. But now comes the question – how do you decide which of these credit cards is the best option for you? This is an important consideration as a credit card is not something you keep applying for and change very often, so it’s important you try and get it right the first time. Don’t worry, we’re here to help you make that choice and this particular article is focused on which Emirates Skywards credit cards offer the maximum Skywards miles for purchases made on the card.

All these Emirates Skywards credit cards also offer other benefits in addition to earning Skywards miles and you can find all the details for each of these cards at www.soulwallet.com in addition to finding our take on the best Skywards credit cards for specific criterion including bonus miles, Skywards tier levels and so on which you can read here.

When it comes to figuring out which Emirates Skywards credit cards are the best for earning Skywards Miles it is important to keep the below in mind:

Which card is the “best for maximum Skywards miles” depends on what type of transactions the card is used for. This is because different credit cards offer different amounts of Skywards miles for different type of purchases. And this can vary not just from bank to bank but within the different Emirates Skywards cards offered by the same bank as well. Hence, while one credit card may earn 1 Skyward mile for every AED spent at supermarkets another may only earn 0.25 Skyward miles for every AED spent at supermarkets. This is why identifying the best credit card to maximise Skywards miles depends on how much YOU as an individual spend on different types of purchases.
Some Emirates Skywards credit cards do not offer ANY rewards for certain types of spends made on the credit card. This could be relevant depending on the typical spends made in that specific category.
Almost all Skywards credit cards offered by banks in the UAE offer more Skywards Miles for spends made at Emirates Airlines (and Flydubai) and more for purchases made internationally (i.e. in a foreign currency). If you make significant purchases at these airlines each year this could have a considerable impact on the amount of Skywards miles earned.
Only some Emirates Skywards credit cards offer card holders the option to earn Skywards “Tier” miles on spends made on the credit card. Tier miles are different from regular Skywards miles and go towards earning the specific “tier” of membership within the Emirates Skywards program – Silver, Gold and Platinum. These tier miles are different from regular miles which can be used to make flight ticket or retail purchases and be used to upgrade flight tickets.
Many of the Emirates Skywards credit cards also offer some “welcome” or joining bonus Skywards miles which in some cases can be a very attractive offer to consider. Almost always these offers will be based on certain criterion being met including payment of the joining or annual membership fee and meeting certain spend levels on the card within specific time frames. For e.g. Dubai Islamic bank current has an offer on their Emirates Skywards Infinite credit card where 120,000 Skywards miless will be awarded to the card holder if an amount of AED 120,000 is spent on the card by April 30^th
In some instances, certain categories of payments such as utilities (DEWA) or telecom (Du or Etisalat) which are made via the bank’s online channels either do not earn or earn lower Skywards miles.
The final decision on Emirates Skywards miles awarded for each category of spends is always with the bank issuing the credit card and it is always advisable to clarify these before applying for the credit card.

The below tables have details of the Emirates Skywards miles one can earn based on the specific transaction types for every Skywards credit card offered in the UAE.

PREMIUM EMIRATES SKYWARDS CREDIT CARDS (minimum required salary > AED 15,000)	ADIB Emirates Skywards World Elite Credit Card	Citibank Emirates Ultima Credit Card	Citibank Emirates Ultimate Credit Card	Dubai Islamic Emirates Skywards Infinite Credit Card	Emirates Islamic Skywards Black Credit Card	Emirates Islamic Skywards Infinite Credit Card	Emirates NBD Skywards Infinite Credit Card	RAKBANK Emirates Skywards World Elite Mastercard Credit Card
EXPENSE CATEGORY	Emirates Skywards Miles Awarded For Every 1 USD (or AED Equivalent i.e. ~per AED 3.68 of spend)
Emirates & (flydubai) spends	3	2.5		2	3.5	2	2	Spends Based Tiers
Foreign currency (non AED) spends	2	1.5	1.25	1.5	2*	1.50*	1.5	Spends Based Tiers
Local (AED) currency spends	1.5	1	1	1	1.5	1	1	Spends Based Tiers
Specific Spends Categories:
Grocery / Supermarket	0.25	0.5	0.5	0.3	0.15	0.15	0.25	0.50**
Government Services	0.25	0	0	0.3	0.15	0.15	0.1	0.50**
Utilities	0.25	0	0	0.3	0.15	0.15	0.1	-
Education	0.25	1	1	0.3	0.15	0.15	0.1	0.50**
Fuel / Petrol Station	0.25	1	1	0.3	0.15	0.15	0.1	0.50**
Real Estate Related	0.25	0.5	0.5	0.3	0.15	0.15	0.1	0.50**
Public Transportation	0.25	1	1	1	1.5	1	0.1	0.50**
Charities / Religious Organizations	0.25	1	1	1	1.5	1	1	0.50**
Insurance / Car Dealership	1.5	1	1	0.3	0.15	0.15	0.25	0.50**
Telecommunication	1.5	0	0	0.3	0.15	0.15	0.1	0.50**
Quick Service Restaurant	1.5	1	1	1	0.15	0.15	0.25	-
Duty Free	1.5	1	1	1	1.5	1	2	-
Online Food Delivery, Car Booking Apps	1.5	1	1	1	1.5	1	2	-
Health & Beauty / Club Membership	1.5	1	1	1	1.5	1	1	0.50**
Cinema	1.5	1	1	1	1.5	1	1	0.50**

* European Economic Area transactions will only earn 0.375 Skywards miles per USD of spend.
** these categories earn only 50% of the Skywards Miles If the total spend in these categories is LESS THAN 50% of the total spend on the card.

EMIRATES SKYWARDS CREDIT CARDS (minimum required salary AED 15,000 or below)	ADIB Emirates Skywards World Card	Citibank Emirates World	Dubai Islamic Emirates Skywards Signature Credit Card	Dubai Islamic Emirates Skywards Platinum Credit Card	Emirates Islamic Skywards Signature Credit Card	Emirates Islamic Skywards NBD Credit Card
EXPENSE CATEGORY	Emirates Skywards Miles for every 1 USD (or AED equivalent ~ AED 3.68 of spend)
Emirates & (flydubai) spends	2.5	0.75	1.5	1	1.5	1.5
Foreign currency spends	1.5	1	1	0.75	1.1*	1*
Local currency spends	1	0.75	0.75	0.5	0.75	0.75
Specific Spends Categories:
Grocery / Supermarket	0.25	0.5	0.2	0.15	0.375	0.1875
Government Services	0.25	0	0.2	0.15	0.1125	0.075
Utilities	0.25	0	0.2	0.15	0.1125	0.075
Education	0.25	0.75	0.2	0.15	0.1125	0.075
Fuel / Petrol Station	0.25	0.75	0.2	0.15	0.1875	0.075
Real Estate	0.25	0.5	0.2	0.15	0.1875	0.075
Public Transportation	0.25	0.75	0.75	.50	0.75	0.075
Charities / Religious Organizations	0.25	0.75	0.75	.50	0.75	0.75
Insurance / Car Dealership	1	0.75	0.2	0.15	0.1125	0.1875
Telecommunication	1	0	0.2	0.15	0.19	0.075
Quick Service Restaurant	1	0.75	0.75	.50	0.19	0.1875
Duty Free	1	0.75	0.75	.50	0.75	1.5
Online Food Delivery, Car Booking Apps	1	0.75	0.75	.50	0.75	1.5
Health & Beauty / Club Membership	1	0.75	0.75	.50	0.75	0.75
Cinema	1	0.75	0.75	.50	0.75	0.75

Digital Banking In UAE

Posted on May 20, 2022May 20, 2022 by admin

Digitization is defined as the conversion of data into a digital format with the implementation of technology. The world has become more and more digital in every. Banking is one of the first sectors to witness the impact of digitalization. Many transactions have been taken over by machine learning to not only have a more efficient transaction but also in detecting fraud and keeping banks and its customers data safe.

In the last two decades, the advancement in technology and the era of smartphones have unleashed new forms of banking solutions on mobile apps. The stiff competition from other financial technology providers made it imperative for traditional banks to quickly adapt to the changing times and transform digitally.

Thanks to the era of digital banking, many customers haven’t set foot inside a bank branch. During the turbulent time of the pandemic, digitalization has opened many new doors for both the banking sector as well as the customers. Customers are able to access everyday banking functions via a mobile app or over the internet on their personal computers and mobile phones. Many businesses went cashless during the pandemic as well, thus encouraging more cashless transactions at a wide swath of stores from grocery shops to high-end brands.

What is digital banking?

In simple terms, digital banking refers to banking services carried out through an online digital platform without involving any paperwork. This includes combining online banking services and mobile banking services under one umbrella.

Online Banking:

Online banking is having access to all bank features and services via the bank’s website from your computer. You can log into your account to view your balance and make payments like rent or electricity bills. You can also access additional banking features such as applying for credit cards or loans at many banks via your online banking portal. With online banking, you do not need to physically go to the bank and can access many of your financial services on your personal computer from the comfort of your home.

Mobile banking:

Mobile banking is using the mobile banking app of your bank on your mobile device and having access to the features and services on your mobile device such as a smartphone or a tablet. The apps are proprietarily issued by your bank, and you can log into your account on your online banking portal. Mobile banking was designed for people on the go who would like to have access to their banking services even when they do not have access to a computer. Banking apps have features such as mobile check deposits, bill payments, and fund transfers and convenient features like peer-to-peer payments. Banks also use mobile apps to send notification alerts such as deposit received or low balance or fraud detection.

Online banking and mobile banking together create the digital banking umbrella, giving customers access to banking services wherever they may be. Or in some cases wherever the customers are graced with a secure and strong Wi-Fi signal.

Who offers Digital Banking?

Digital Banking in the UAE is different from the traditional form of banking. Digital banking as implied can be availed online without having to physically visit the bank, however, digital banking offers even more features and services online. Services like opening an online account, deposits, fund transfers, online payments, tackling insurances, paying loans and much more services are offered without the necessity to visit the bank in person.

Digital banking in the UAE is offered through two primary sources:

Brick-and -Mortar banks
Digital online only banks

Customers may choose a mode of banking that caters to their needs best.

The difference between Digital Banking and Online Banking

Even though they sound similar, online banking and digital banking are not the same. Both of them are forms of banking as online banking falls under the category of digital banking. Online banking is defined a bit more narrowly than digital banking.

With online banking, a customer can avail of some of the banking services like bill payments, fund transfers, access to account statements and account summary online on the bank portal accessed by a computer or on the mobile app of the bank without having to visit the bank. For services like opening a bank account or applying for banking services, the customer would have to visit their bank branch.

In digital banking, the customer does not need to visit the bank for any services, including opening a new account and applying for bank services. Customers can also avail of other services like making payments, transferring funds, and several other services. The customer can avail of these banking services from anywhere and at any time using the bank website or the bank mobile app. The process of banking is completely automated and paperless.

Digital Product Services

With access to a stable internet connection and an internet enabled smart device, digital banking has a lot to offer:

Obtain bank statements:

- View and download your bank statements for any specific period

Transfer of funds:

- UAEFTS hosted by central bank provides Real Time Gross Settlements RTGS, , the need to issue cheques and DDs have been eradicated

Mobile banking:

- Mobile banking is digital banking through an application optimized for smartphones and tablets.

Cash withdrawals:

- ATMs facilitate cash withdrawals at any point in time.

Bill payments:

- The auto-debit feature for bill payment lets a user setup monthly debit in favour of regular utility payment

Finance:

- Invest, open fixed deposit accounts and raise loans through digital banking. Link your De-mat account to provide a seamless flow of funds to invest promptly.

Manage cheques:

- Intervene in the cheque clearing process using digital banking to stop the cheque if the need arises

Monitor transaction records:

- Receive alerts and notifications to the linked mobile number or email address. The notification arrives as soon as the transaction is executed. Digital banking also lets you monitor account balances or outstanding at the click of a button.

Types of digital banks

The following are some of the main types of digital banks:

Neobank

- They are digital banks operating online without any physical presence and provide remote access to their services via a mobile app. Many do not hold a bank license and partner with an existing bank for bank licensed operations.

Challenger bank

- Refers to a recently launched bank that challenges the traditional banking institutions. Being more user friendly and cost effective, challenger banks focus on the audience segments that are underserved by the big financial institutions.

New bank

- They are fully licensed neobanks that provide a full range of banking services and the only difference from brick and mortar banks is the mode of operation, which is completely online.

Nonbank

- They are non banking institutions that provide financial services like streamlined loans or mortgages but they do not simultaneously accept deposits or offer checking and savings accounts.

Advantages of Digital banking

With the number of services provided and the client as well as bank convenience factor taken into consideration, many advantages are offered to both the banks as well as the clients.

Some of these advantages are:

Increased customers
Enhanced efficiency
User friendly experience
Data driven decisions
Cost efficiency
Improved usability
Greater personalization
Client and bank convenience
Anytime anywhere availability of access
Automatic payment features
Services to remote areas
Reducing the risk of counterfeit currency
Strengthens privacy
Time saving

Digital banking tips

Even though digital banking is safe and secure, it is always advisable to remain cautious with one’s private information

Do not write down your login details with credentials and password anywhere
Do not share your credentials with anyone including banking officials
Do not tell your banking card pin to anyone
If your card is lost, report it on the bank website and immediately block it
Call your bank and ask for clarification if you have any doubts about payment or pin requests received.

Digital transformation in the banking sector of the UAE

With the advancement seen in technology, innovation, and futuristic outlook, UAE is at the forefront of the digitalization of the banking industry. The digitalisation of the banking sector, in general, can be traced back to the 1960s when ATMs and payment cards were introduced to the people. With the popularity of the internet in 1980, banks began offering internet-based services to their customers to make transactions quicker and easier.

Keeping pace with global developments in the digitalisation of banking, the banks in UAE are quickly adapting to digital only solutions and joining the digital banking fray. The banks in UAE realised the opportunity and challenges in the financial technology revolution and began changing to fit the need and demands of the market. In the second half of the previous decade, a number of banks launched digital banking initiatives. These initiatives include a separate digital only banking platform, strengthening the existing mobile banking platforms, refocusing services on digital platforms as compared to services in branches and catering to customers’ lifestyles and the younger generation.

The top leading banks in the UAE such as Emirates NBD, Mashreq, and Commercial Bank of Dubai were the first to commit large resources to the digital transformation of the banking system in the UAE. Emirates NBD’s Liv., Mashreq’s Neo and CBD’s CBD.Now are all digital banking propositions focused on branchless delivery of banking services to their customers through mobile banking technology.

Top Digital Banks in the UAE

The UAE has always kept pace with the global trends in financial technologies. Currently, UAE is home to a number of digital banks and the number keeps increasing. From personal banking to banking optimised for businesses and youth there are a number of options available in the UAE.

EMIRATES NBD LIV

Launched in 2017 by Emirates NBD, the bank is geared toward the youth in the UAE. After digitally enrolling with Liv, customers can do banking via Liv’s Apple or Android app.

EMIRATES NBD E20

Due to the popularity of Liv, Emirates NBD launched another digital banking platform in 2019 called the E20 to cater for digital business banking.

MASHREQ NEO

Launched in 2017 by Mashreq Bank, Neo offers a wide range of services via a mobile banking app to suit modern banking needs. Named as Middle East’s best mobile banking app in 2020 by World Finance, you can also invest in gold, forex, and stocks from the same digital app.

Yap is the digital banking app of RakBank that is completely paperless. With the latest security and technological features, YAP users can bank safely from anywhere. You can also track your financial decisions along with the YAP app’s financial analytic tools.

ADIB SMARTBANKING

Created by Abu Dhabi Islamic Bank (ADIB), SmartBanking offers its users many benefits. Get your card delivered to your doorstep and have access to savings account across the Middle East and free ATM withdrawals at ADIB ATMs across the UAE.

ADIB AMWALI

Created by the Abu Dhabi Islamic Bank (ADIB), Amwali is a digital only bank created to cater to the UAE’s youth. Children can learn financial management lessons on the app and track their savings and spending from the money sent by their parents. The advance parental control abilities allow parents to track the child’s account and set limits for them.

Digital banking services have seen a rapid surge in customer acceptance across the UAE. The younger generation was quicker to accept digital platforms and digital servicing, while the older generation was cautious at first, although now are fast adapting to the gaining digital banking traction.

Islamic Finance & Banking

Posted on March 30, 2022 by admin

What is Islamic Finance?

Islamic finance simply put is a method of conducting financial transactions, banking, and managing money with moral principles that respect Islamic law or Sharia. Islamic finance includes activities like saving, investing, and borrowing money either for business or personal transactions that are permissible under Sharia and that comply with Islamic Laws. The concept of Islamic finance also refers to the type of investments that are permissible under Sharia.

Sharia or Islamic Law constitutes a broad set of rules that guide an individual on leading an ethical life. These rules and guidelines are derived from the Qur’an and the sayings and practices of the Prophet Muhammad. The word Sharia in Arabic means “the way,” thus showing an individual the ideal way to live. In the context of Islamic finance, the rules and guidelines place an emphasises on justice and partnership. Hence, you may hear Islamic financial services often described as “Islamic finance” or “Shari’ah-compliant”.

Principle of Islamic Banking

The Islamic law or Sharia recognises money only as a medium of exchange which has no value in itself. Therefore, as per Sharia law money cannot generate more money. The Islamic law prohibits the income earned through the medium of interest generated. This interest can be defined as interest generated through lending money, or interest earned by money simply sitting in an account.

Islamic finance is principally based on trading with emphasises on justice and partnership. The use of money for the purposes of making money is explicitly forbidden.

The main principles of Islamic finance are:

Wealth must be generated from lawful trade and asset-based investment
Each transaction must be related to a real underlying economic transaction.
Investment should have a social as well as an ethical benefit to wider society beyond pure return
Profit/Loss and Risks should be shared
All harmful activities (haram) should be avoided

Therefore, banks can make a profit from the buying and selling of Shari’ah-compliant goods and services. When a customer deposits money according to Islamic law, the bank needs to select a Shari’ah-compliant investment for the purpose of that deposit. The profits and risks that come with the investment are shared equally with the bank. The practices of Islamic banking have some clear ethical advantages over more traditional banking systems, which can be seen as unprincipled.

Things Prohibited in Islamic Finance

In order to comply with the Shari’ah, certain activities are prohibited in Islamic finance.

The following activities are strictly prohibited in Islamic finance:

Charging and receiving interest (riba):

A lender charging a straight interest, irrespective of how the underlying assets fare disobeys the concept of risk sharing, partnership, and justice. Thus, representing money being used to make more money. Investment in companies that conduct borrowing excessively is also prohibited.

Investments in unethical businesses (haram):

Investing in businesses that deal with activities like alcohol, gambling, drugs, pork, pornography, or anything else that Shariah considers unlawful or undesirable is prohibited.

Investments in transactions that involve speculation, uncertainty, or extreme risk (gharar):

This type of investment is considered gambling, which is prohibited (haram). For example, investing or speculating on the futures and options markets is prohibited. Mutual insurance (which relates to uncertainty) is permitted if it is related to a reasonable and unavoidable business risk.

Uncertainty about the subject matter and terms of contracts:

Selling something that one does not own is prohibited. Investing in special financial techniques that is available for contracting to manufacture a product for a customer is considered as investing in a product which one doesn’t own, as the product hasn’t been made yet. A manufacturer can promise to manufacture the product under certain agreed specifications at a determined price and on a fixed date and in this case, the risk taken is by a bank that would commission the manufacturer and sell the goods on to a customer at a reasonable profit for undertaking this risk. Thus, the bank is exposed to considerable risk. Avoiding contractual risk in this way means that transactions have to be explicitly defined from the outset. Hence, complex derivative instruments and conventional short sales or sales on margin are prohibited under Islamic finance.

Things Permitted in Islamic Finance

As mentioned above, the receipt of interest is not prohibited in Islamic finance. Hence, when Islamic banks provide finance, they have to find other means to earn their profits. This can be done through the profit share relating to the assets in which the finance is invested or can be via the fee that is earned by the bank for the service provided. The essential feature of Islamic law is that when commercial loans are made, the lender must have a share in the risk. If this is not so, then any amount received over the principal of the loan will be regarded as interest.

The following activities are permissible financing instruments in Islamic finance:

Profit and Loss Sharing Contracts (Mudarabah):

The Islamic bank pools together investors’ money and accepts a share of the profits and losses, as agreed upon with the depositors beforehand. The bank invests in a group of mutual funds screened for Sharia compliance. These investments are then filtered to determine whether any sources of income to the business are prohibited. Companies that hold a lot of debt or are engaged in forbidden lines of business are excluded. In addition to actively managed mutual funds, passive funds also exist. They are based on such indexes as the Dow Jones Islamic Market Index and the FTSE Global Islamic Index.

Declining Balance Shared Equity

Commonly used to finance a home purchase, declining balance shared equity calls for the bank and the investor to purchase the home jointly. The bank will then gradually transfer its equity in the house to the individual homeowner, whose payments comprise the homeowner’s equity.

Lease to Own

This arrangement is akin to the declining balance shared equity. The financial institution or bank puts up most of the money for the house and agrees to sell the house to the eventual homeowner at the end of a pre-decided fixed term. A portion of every payment goes toward the lease and the balance goes towards the home’s purchase price.

Instalment Sale (Murabaha)

An instalment sale starts with an intermediary buying the home with a free and clear title to it, which is then sold to a prospective buyer on an agreed upon sale price. This price includes some amount of profit. This purchase can be made either outright (lump sum) or through a series of deferred (instalment) payments. This credit sale should not be confused with an interest-bearing loan as it is an acceptable form of finance.

Leasing (Ijarah)

Leasing or Ijarah involves selling the right to use an object for a specific time. The condition followed must be that the lessor should own the leased object for the duration of the lease. A variation on the lease, ‘ijarah wa ‘iqtina, provides for a lease to be written where the lessor agrees to sell the leased object at the lease’s end at a predetermined residual value. This promise binds only the lessor and the lessee is not obligated to purchase the item.

Islamic Forwards (Salam and Istisna):

These are used for certain types of business and are not that common. The price for the item is paid in advance and the item is delivered at a definite point in the future. The help of an Islamic legal advisor is usually required as there is a host of conditions to be met to render such contracts valid.

Some permissible Basic Investment Vehicles are:

Equities

Sharia law allows investment in company shares (common stock) as long as those companies do not engage in any forbidden activities (haram). Investment in companies can be in form of shares or by direct investment (private equity).

Fixed-Income

Retirees who want their investments to comply with the principles of Islamic finance face a dilemma in that fixed-income investments include riba, which is forbidden. Hence, specific types of investment in real estate provide steady retirement income while not running afoul of Sharia law. These investments can be direct or securitized, such as a diversified real estate fund.

Basic Insurance Vehicles

As traditional insurance is not permitted as a means of risk management in Islamic law, a possible Sharia-compliant alternative is cooperative (mutual) insurance. Investors contribute to a pool of funds, which are invested in a Sharia-compliant manner. Funds are withdrawn from the pool to satisfy claims, and unclaimed profits are distributed amongst the policyholders.

Who makes the rules for Islamic Finance?

Islamic finance offers products and services that comply with Islamic law (Sharia) and often the question that comes up is of who decides what is and is not sharia-compliant? Also, what mechanisms are existing to enforce those judgments?

There are several options a bank can utilise to keep check of these rules

Sharia Supervisory Boards:

Generally, each Islamic finance institution has a sharia supervisory board (SSB). This board is composed of at least three jurists. These jurists although are paid by the bank, act as independent consultants and are involved in both consultative and regulatory aspects. They verify operations, answer the staff’s questions, advise on charity contributions (zakat), and certify products.
The Sharia Supervisory Boards decide what is allowed (halal) or forbidden (haram) based on the two main sources of Islamic law; the Quran and the Sunnah; or what Prophet Muhammad reportedly said and did during his lifetime. Board decisions are taken by a majority vote and are binding on the bank.
These SSB members are religious scholars who specialise in Islamic jurisprudence. It is not necessary for them to be Muslims only. In countries like the UK, there are also non-Muslims experts who have studied and specialised in this matter extensively.
Over the past decade, Islamic finance has rapidly expanded across the world and finding qualified people to sit on SSBs has become challenging. In the world of Islamic finance, reputation is important and sharia non-compliance can be extremely fatal to a bank.

Sharia-Compliance Consultancy: A Juicy Business

With the increasing popularity of Islamic finance, a number of private firms have emerged over the past few years offering sharia compliance services or consultancies. Their clients are not only Islamic banks but also conventional lenders and companies who wish to develop products or acquire certifications that will allow them to tap into the Islamic market.
These consulting firms employ a group of Islamic scholars who function like an externalised sharia board, providing guidance and issuing Islamic rulings (fatwas) in exchange for a fee.

International Standards and Central Banks

At the international level, two supervisory bodies are created for Islamic finance. They are the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and the Malaysian Islamic Financial Services Board (IFSB).
These bodies collaborate with institutions such as the IMF or the World Bank to promote sharia compliance globally. The AAOIFI sets basic standards for the Islamic finance industry while the IFSB issues recommendations based on risk assessment.
In Bahrain and the United Arab Emirates, AAOIFI standards are mandatory but, in most countries, their standards and recommendations are not binding. If a bank doesn’t comply, there are no sanctions. It is up to each independent country government to enforce certain rules through their central banks who impose those rules on sharia boards.
In all countries except for Sudan and Iran Islamic finance exists alongside conventional banking. For Islamic banks, this means navigating a dual regulatory framework. This means the country follows the country’s laws and regulations as well as sharia compliance.

Growth of Islamic Finance

The concept of Islamic finance can be traced back to about 1,400 years ago when the concept came into existence along with the foundation of Islam. However, the establishment of formal Islamic finance related to the banking sector came into being only in the 20^th century. In recent history, it can be traced to as recent as the 1970s, when Islamic banks in Saudi Arabia and the United Arab Emirates were launched. The concept has since grown with Bahrain and Malaysia emerging as centres of excellence in the 1990s.

Shari’ah-compliant financing (SCF) or Islamic finance is recognised as one of the fastest-growing segments in the global financial system. Since 2009, the estimated compound annual growth rate has been 17%, proving the significance of Islamic finance in the global economy. The Islamic finance sector has had a significant expansion since, with a growth rate of at least 15%-25% per year. As of 2015, the industry’s global assets had reached up to $1.6 trillion in value. In today’s date and time, it is estimated that worldwide Islamic financial institutions oversee assets valued at over $2.5 trillion with hundreds of specialised institutions located in more than 80 countries, which are managed under the rules of Sharia.

Understanding the importance Islamic finance plays in the global economy, the popularity of Islamic finance is reaching systemic significance in a number of countries in Asia. Islamic finance has achieved at least a 15% market share in the domestic banking sector in countries like Brunei, Bangladesh, and Malaysia. The expansion of Islamic finance can also be seen in developing member countries (DMCs) within Central West Asia, South Asia, and Southeast Asia. Here Islamic finance has been expanding to new jurisdictions and maintaining momentum where it already has a strong established presence. The DMCs have begun implementing legislative and regulatory initiatives to establish themselves as Islamic financial hubs.

Islamic finance is gaining popularity not only in countries having predominantly Muslim populations but also in European and African countries. Luxembourg, Hong Kong, China, the United Kingdom, and South Africa have debuted sovereign Sukuks (Islamic trust certificates, similar to conventional bonds), with all issuances being at least twice oversubscribed, demonstrating strong demand for Islamic finance globally. According to a State of Global Islamic Economy report in 2019, the total sharia-compliant assets are expected to grow to at least $3.5 trillion by the year 2024. Islamic finance is proving to be an increasingly relevant sector as can be derived from the increasing market share of Islamic finance in the domestic banking sectors around the world.

The Bottom Line

Islamic finance is a century-old practise that is gaining recognition throughout the world. Islamic banks are by far the biggest players in the Islamic finance industry, accounting for almost $1.75 trillion or 70% of the total assets. In 2019, Islamic finance represented about 1% of global financial assets with an 11.4 % growth rate. Islamic finance is expanding quicker than conventional finance, however with COVID 19 that growth is expected to slow down but remain positive. In some geographies like the Gulf Cooperation Council (GCC) or Sub-Saharan Africa, Islamic banks are now competing directly with the Western banks to attract more Muslim clients and given the increasing development of Muslim nations, this field is expected to undergo even more rapid evolution. Islamic finance will continue to address these challenges of resolving Islamic investment policy and modern portfolio theory.

How Digital Banking Systems Enhance Customer Experience?

Posted on March 24, 2022March 24, 2022 by admin

Technology is ever changing and continues to revolutionise the world in which we live. In less than a decade, the lives of every single person worldwide have changed from being digital second to digital first. As technology is developing towards providing a comfortable lifestyle, people’s preferences are changing with respect to living in this easily accessible digital world. The world has seen significant improvements and advancements digitally in the last few years alone. These advancements would only continue to grow and inspire people to adapt to the changes in their lifestyles. Gadgets like laptops, smartphones, tablets, and computers have become an integral part of almost everyone’s daily life. Internet and online preferences have seen a significant rise, adding to the comfortable lifestyle of an individual.

The Continuous evolving landscape, cutting-edge competition, along with rising customer expectations have become a general thumb rule to adapt to in almost every industry. The banking sector is no exception and is one of the first industries to adapt to digital advancements. The banking and financial sector being the backbone of any economy is understandably on the frontline for digitalisation and advancement. This is also why many insurances, banking services, and financial institutions and providers have to keep up with the new trends to tend to their customers promptly.

SoulWallet helps you compare and find the best credit card across various banks, that are suited for your needs for you to have an easy and hassle-free experience. The well-researched, solidly structured, unbiased content along with unique tools at SoulWallet help you make well informed financial decisions for your personal and business transactions. In the process, SoulWallet helps you identify the options that will let you save money and enjoy the best perks.

Digitalisation in Banking

With the digitalisation of the banking sector, more and more people prefer to manage their financial activities from making payments, transactions like transferring of funds, checking their bank account statements to applying for loans and credit cards by simply logging into their digital banking portals and conducting these activities from the comfort of their homes or from on the move without having to visit the bank. Digital banking is a system that helps banks and financial institutions to digitalise their banking services and make them convenient to use for the customers as per their convenience. Digital banking services can include activities like money deposits, withdrawals, management of the customer’s bank account, application for financial products, like credit or debit cards, management of loans and other transactions.

Digitalising the banking sector has also helped grow their customer base and transactions can be carried out easily from any area of the world. In order to incorporate this, various digital platforms have established easier links between people from different remote corners, connecting them to the banking and financial institutions and providing them with the service they need. That is why the preference for digital banking for both customers and bankers is thriving.

In many cases, physical restrictions and complications lead to a sharp surge in a demand for an online platform for financial activities and digital banking services. A study by Mastercard revealed that 62% of the respondents in Europe expressed a keen desire and interest in moving from the physical banking aspect to banking using digital platforms in the year 2020. With the complications arising due to the pandemic, over half of the world’s population prefers using online facilities and banking apps more than ever and have expressed a more positive interest in digital banking overall. Customers have switched banks for banks that offer banking features that provide safe, quick, and convenient access to their finances online. Fast, simple, and effortless digital experiences have now become the default mode for consumers throughout their lives, and it’s becoming increasingly important for banking too, particularly as all the big techs have upped their involvement in their respective sectors.

Digital banking authorizes its customer’s personalization at the scale that drives between 5 and 15% revenue growth for the corporations in the financial service sectors. Banks functioning digitally have also witnessed a reduction in costs and streamlined processes. This end-to-end integration has also helped provide an engaging customer experience in financial services that allow business transformation with the help of Artificial Intelligence (AI).

Customer Experience in Banking

In the year 1999, when the world was steadily digitalising, Dell’s then Chief Information Officer Jerry Gregoire proclaimed, “the customer experience is the next competitive battleground.” The two decades since have shown this to be a very accurate prediction in all sectors of business.

All the efforts a bank puts in making each and every one of their individual clients feel important while interacting and transacting with the bank is referred to as the customer experience (CX). The cumulation of all the interactions that a customer perceives along the entire journey is also a part of the customer experience. Customer experience is the most important aspect in the banking and financial sector. Every strategic approach taken by the banks is to meet the demands of their customer and to satisfy their customer needs. In this day and age, it is crucial for banks and financial institutions to digitally transform themselves to deliver a consistent banking experience online for their customers.

A study by the digital banking report has concluded that improving the customer experience in banking should be the first goal for all banking institutions and financial service providers. The banks that invest in the customer experience trends have a higher rate of recommendation, greater wallet share and are more likely to up and sell or cross-sell products and services to existing customers.

In the financial service industry, customer experience carries equal weightage, if not more. Addressing customer suggestions and preferences is much more impactful in the long term and forms a loyal customer base. Banks and financial institutions that adopt new trends and strategies to revamp the banking and financial service experiences are steady in the market and have a loyal and expanding customer base. Banks and financial institutions that have used digitalisation and technology to create seamless, convenient, and intuitive customer experiences have dominated their markets.

What are the Customer Expectations from Digital Banking Experience?

Customers expect their banks should focus on creating an experience culture that would nurture all their needs, build trust, and offer personalised experience as per their convenience.

The key customer expectations when it comes to digitised banking experience are:

Easy accessibility – Banks and financial institutions need to provide quick and easy to use digital platforms that are accessible across multiple devices, mainly smartphones and computers. Various features and banking transactions should be carried out easily on these platforms without any wait time. The high quality banking experience along with easily connecting with the bank directly is a must.

Real time assistance – Often customers need real time assistance and prefer instant support. This not only builds confidence in the customers but also encourages loyalty and recurring customers. Using live assistance tools like co-browsing and video chats, banks can provide real time support and help to their customers. Chatbots also help scale their support and customer interactions.

Personalised services – Customers almost always prefer personalised services and relevance as per their needs. They would look for products and services that match their needs and provides subsidies that would be beneficial to their needs and usage. Banks can identify the key business drivers and deliver personalised support that would help shape the customer experience in banking.

Data security – Many customers are sceptical about their financial and important personal information being misused or taken advantage of. Data security is the most crucial point for any banking and financial sector. Customers need to feel safe sharing their finance and personal information with the bank. A healthy relationship between banks and customers is only created with a secure network and when a bank can guarantee security to the data of their customers.

Multifunctionality – Customers prefer banks that offer them options and solutions to any of their problems immediately. The banks need to keep pace with the latest developments of the market and technology and offer services across different channels simultaneously.

Design – Many traditional banking institutions often do not concentrate on their interfaces and fail to attract new clients. A customer today will prefer banks to have an exceptional UI along with easy to use website or mobile apps. Investing in improving digital channels attracts more customers.

Three ways Banks can conquer Customer Experience in Digital Banking

Banks hold enjoy strong customer relationships and trust since their establishment. Even with the services and products becoming available digitally, most of the customers trust their banks and banks that offer superior and personalised services. To further thrive in this digital era, banks need to harness the available advanced banking technology. This will allow the banks to match with the seamless and intuitive customer experiences offered by other big tech and their competitors.

To conquer customer experience in digital banking, banks need to focus on three key areas:

Transform the business models and mindset to a customer first approach – The customer first mindset requires banks and financial institutions to think about customer needs relentlessly and make things easy and accessible for the customers.

Leverage advanced banking technology – All banks require advanced digital banking solutions that help them manage their customers worldwide. Using technologies like application programming interfaces (APIs), cloud, and artificial intelligence allows banks to analyse and manage their vast amounts of data and large customer base.

Maintain and extend your trust advantage – Trust being the most important factor, offers a valuable advantage to build close and personal relationships with customers. Combing technology with customer experiences, banks can enhance customer experience and develop stronger trust with their clients.

Tips to Improve Digital Transformation

For banks to succeed in digital transformation and to avoid outdated assumptions while creating exceptional services that focus on their customers, banks should follow the following customer experience tips:

Serve more instead of selling
Make emotional connections with customers instead of overloading them with lots of information
Provide actionable solutions to customers instead of just focusing on features
Create an integrated flow for the customers instead of disintegrated experiences
Become disruptive instead of being protective

Ways to Improve Digital Customer Experience in Banking

The adoption of digital enablement technologies by banks that are able to function together smoothly is required to orchestrate a connected and enhance customer experience.

The following strategies are options for banks to achieve this state:

Proactive engagement for improved financial management – Financial institutions have various means and innovative methods to collect data, analyse and channel strategies to diversify the means of engaging customers and building better and stronger relationships in real time. By educating customers, notifying customers without delays, and conducting surveys help banks in conducting proactive customer engagement.

Offering live assistance – Mapping a consumer banking journey is an excellent way to gain a detailed understanding of the customer’s experience. This can help banks discover common customer complaints, gain insights into improving the consumer journey, help in identifying the touchpoints customers have with the bank and understand their expectations better. This also helps in improving customer resolution time, reducing sale cycle and number of touchpoints for the customer.

Using chatbots as Financial Concierge – Artificial intelligence has played a significant role in technological development. Using AI chatbots is a common practice for customer interactions. This helps in providing faster and more accurate solutions to customers in real time and help in connecting with the right department and bank personnel without much response delay. The chatbots also provide customer information to the banks to help them identify the customer and the problem quicker and thus provide accurate solutions.

Prioritise a seamless omnichannel customer experience – Modern customers prefer to connect with the bank across various different channels according to their convenience. Banks need to provide the same time of services across all channels, both online and offline.

Understand the customer journey – Creating an unrivalled customer experience is an aspiration of all banks and this can be achieved by following the end to end customer journey. Customer needs, actions, barriers, and motivation can be considered at every stage of the customer journey and any shortcomings can be dealt with immediately without wasting time.

Make use of big data and analytics – Understanding customers is the foundation for sustainable competitive advantage in the digital banking and financial sector. With the help of analytics and data, banks can gain valuable insights to segment customers, evaluate opportunities, and predict models to strengthen engagements and increase the customer experience of digitalised banking services.

Using a personalised customer experience approach – Personalisation is imperative, and every customer demands it. These elements help banks to put customers first, leverage this customer data and deliver multi channel customer experience, thus improving the customer experience overall worldwide

Transparency, Security, Trust as customer experience tools – Forbes says that customers want to feel valued, appreciated, and confident, and customers who feel this, will advocate the brand. Using these tools builds deep trust and cultivates loyalty in customers who in turn recommend the bank or financial institution to others, thus providing more value to the banks.

Trends Reshaping Customer Experience in Banking for 2022

Enhancing Products & Services with Mobile App Data – In this age and time many mobile banking applications aren’t so much as nice to have rather than on a need to have basis. Banks without this capability are at a severe disadvantage, as customers have come to expect convenient and easy to use a mobile app as a basic necessity. These apps and software enable the banks and financial institutions to analyse the data collected and the machine learning algorithms can help the banks to extract valuable information in return from this customer data, which can then be leveraged to develop new products, optimise the existing processes, better empower customers, and improve the overall customer experience.

The Branch of the Future – Customers do not prefer to visit the physical branches as frequently as they once did and pecks like complimentary coffee and free Wi-Fi aren’t enough to draw modern customers to their physical branches. Physical branches see themselves competing with their own online platforms for customer attention. With the need to reimagine the physical branches to a branch of the future many banks are taking steps in modernising their physical branches to offer more technological services. For example, some branches display mobile, and tablets loaded with their banking apps on display, while some banks have capitalised on the value of one on one, face to face interactions with customers to help them utilise their money better and offer consultative services for the same.

Advising Services – As customers look for ways to grow their money in a safe and secure manner, usually find themselves in a whirlpool of information on the internet and random financial advice, which may or may not be practical for them or may be too broad to be of any real use. Banks can use this opportunity to improve their financial services and pair their customers with in-house financial advisors who can provide tailored advice as per their customers’ needs. This will not only help build trust and better relationships between the banks and the customer but will also offer a competitive advantage. With the help of customer relationship management (CRM) technology, banks can collect and analyse data and build detailed customer profiles which in turn, the in-house advisors can use to gain overall knowledge of their customers thus being able to offer personalised services.

Artificial Intelligence – A customer these days would prefer to reduce human interaction and would prefer to have automated services. This is also apt with the situation where the customer is put on hold while calling the bank’s customer service helpline to report an issue. With the volume of incoming calls steadily increasing and having a limited number of bank representatives on hand to field them, banks have to find innovative ways to tackle this situation without losing the trust of their customers. With the help of artificial intelligence, banks stand to save a substantial amount of resources and help customers more accurately while also improving customer experience in banking. Using artificial intelligence in an innovative manner, banks can also provide virtual assistants to provide money management tips and tricks to customers.

Automated Onboarding – For most banking customers, a quality customer experience hinges on their first impression with bank interaction. This first impression takes place during customer onboarding in the bank. Traditionally, a lot of paperwork and documents were required along with multiple visits to the banks. Digitalisation and making onboarding an electronic process has made it easier for customers as well as for banks. Customers can do it as per their convenience and from the comfort of their homes, whereas banks can use the automated process to compile the data with ease and accuracy, further enhancing the overall customer experience.

Support for Digitalization & Remote Service – In the last year alone, the importance and need for digital channels and remote services have been highlighted quite a bit. Making this transaction digital has been proven to be difficult for many banking customers, more specifically customers from older generations and customers who do not have access to digital platforms. In the coming years, banks need to double their efforts to smooth this transition for their customers. Providing additional support in terms of educating customers, to providing step by step tutorials and interactive videos would help increase customer knowledge and thus improve the overall customer experience. The more comfortable and confident a customer would feel while interacting on the digital platforms and remote services, the better their overall financial services customer experience will be.

“Humanizing” Digital – Even though artificial intelligence and digital platforms are leading banking customer experience; trust is always built on human interaction. To make this a comfortable union, a growing number of banks are offering a mix of artificial intelligence and live support for customer services, generating efficiency gains while still providing customers with the kind of personal touch they need. As technology advances, artificial intelligence and chatbots can be made more personal and be given personalities to have a more customised conversation with the customer and be able to leverage sentiments to detect emotions and respond appropriately.

Hyper-personalisation – Personalisation has been topping the customer experience list for years and the advancements made are tailored around that. The next frontier of personalisation is hyper-personalisation. When compared to standard personalisation that uses data analytics to deliver targeted marketing and sales messaging to different customer segments, hyper-personalisation is using a combination of predictive analytics like artificial intelligence and machine learning to monitor individual customers’ real time usage data and provide services and suggestions accordingly. Armed with this technology, banks can queue more targeted and one on one marketing campaigns and offers.

Proactive Engagement – One of the best things about advanced analytics is that it provides financial institutions with a level of insight into their customers that once seemed impossible. Today, banks can monitor customers’ financial health and proactively offer assistance with financial management or suggest opportunities to grow their wealth. Depending on customers’ preferences, this service can be offered over digital platforms or in person. Watching out for their customers’ interest to demonstrate the value added enhances the overall financial services customer experience.

Doing the Right Thing – The past two years have been challenging and has placed a significant financial strain on individuals as well as businesses. Banks can help their customers by being transparent about their process, data management and being honest about their policies and practices. Sustainability, honest and transparent business models go a long way in ensuring trust between a customer and the financial institution. Offering financial advising services to help their customers regain their footing shows concern and helps build a long term relationship between banks and their customers. Ultimately, doing the right thing by the customer is about demonstrating to customers that you intend to put their best interests first.

Tips for banks on Improving the Customer Experience

Assemble a dedicated customer experience team solely for that purpose
Establish strong feedback loops to gain valuable insight
Take an iterative aspect to optimization
Keep the customer at the centre of the business
Be honest and promise only what they can deliver
Enhance the mobility of products & services
Be a financial advisor throughout the customer’s journey
Mirror customer experience of branch to internet banking
Leverage Artificial Intelligence (AI) to automate routine tasks to save time and optimise value

Popularity of Digital Banking in the UAE

The United Arab Emirates has always been keeping a steady pace with global developments, especially in the era of digitalisation of banking. From the year 1960, with the introduction of ATMs and later internet banking and mobile banking, banks and financial institutions in the UAE have always been in the now. Today, banks propose digital only solutions; and lately, non-bank entrants are also joining this digital banking fray.

The banks and financial institutions in the UAE began to realise the challenges and opportunities of the financial technology revolution that had begun sweeping across all the industries in the second half of the previous decade. This prompted a number of banks and financial institutions to launch digital banking initiatives. These initiatives ranged from separate digital only banking platforms to strengthening of existing mobile banking platforms, rationalising branch based services, and refocusing staff on value-added services rather than repetitive and less-profitable branch operations.

Top Digital Banks in the UAE

Currently, UAE is home to more than a dozen digital banks with the numbers expanding rapidly. From personal banking to banking optimised for businesses and youth, there are a number of options currently available in the UAE.

Emirates NBD LIV
Mashreq Neo
Yap
Abu Dhabi Islamic Bank (ADIB)
Dubai Islamic Bank (DIB)
First Abu Dhabi Bank (FAB)

Banks and Financial Institutions Driving Customer Engagement for Banking in the UAE

Here are some of the customer engagement strategies used by the big players in the UAE’s banking and finance sector

RAKBANK

Is relentlessly focusing on user education reflections in the surge in adoption and usage
RAKBANK is one of the largest and most prominent banks in the UAE. They have prioritized user education in their strategy. The Bank is focused on informing and educating customers about contactless and digital wallet payments via various digital channels such as Apple Pay, Google Pay, Samsung Pay, Garmin Pay, Fitbit Pay, and SwatchPAY. RAKBANK communicated about the safety and convenience offered by the digital payment options to nudge a habit formation among customers.

Commercial Bank of Dubai

Is prioritising financial inclusion and is optimising customer onboarding process
The customer’s shopping preferences are changing from physical stores to predominantly online channels, thus changing the mode of payment and banking in general. Digitization of services has accelerated in the last two years by the pandemic and thus resulted in a phenomenal uptick in digital adoption. Commercial Bank of Dubai has introduced end-to-end seamless onboarding, to make the process easier and faster for customers. Consumers can now open an account from the comfort of their homes in under two minutes and less than ten clicks using their Emirates ID.

Mashreq Bank:

Is unlocking meaningful engagement with customers by deep diving and extensively studying customer behaviour and personalization

Banks and fintech have had a tremendous opportunity to deepen their relationships with their customers in the last two years. These relationships need not be limited to transactions but can span multiple other use cases like school fee payment, food order, and other services the Bank can facilitate. Banks need to make the customer’s life easy across all digital touchpoints and provide relevant and personalized experiences for various age groups and segments. Mashreq Bank analyses customer behaviour understands it and makes proactive decisions to personalize communication using AI-enabled optimization.

Banks by understanding the different areas of customer experiences can come up with an extensive customer engagement strategy to reduce the gaps between customers and the bank. The significance of the digital banking experience can be attributed to the various benefits offered like reduced operational costs, retaining customers, and the ability to stay ahead of competitors by using the latest technologies. The customer experience in the banking ecosphere holds massive untapped potential for growth, from meeting the day-to-day needs of consumers and focusing on preparing for disruptive future technologies.

Buy Now, Pay Later” here to stay | Credit Card schemes - Soulwallet

See it, like it, want it? – “Buy Now, Pay Later” here to stay.

Posted on December 6, 2021December 14, 2021 by admin

What is “Buy now, pay later”?

If you have been hearing the term “BNPL” quite often in the recent days and have been wondering what it is it all about, this article is for you.

Why pay upfront when you have an option to spread the purchase over a few instalments, and without interest? Sounds like an absolute no-brainer, isn’t it?

“Buy Now and Pay Later” is a type of “Point-of-Sale” financing, which is growing in popularity exponentially, especially among millennials. BNPL is a form of unsecured lending in small ticket sizes that allows consumers to make purchases and pay for them later through a few interest-free instalments. Borrowers can utilize these short-term credit schemes on purchases both online and offline even without any credit checks. A first-time buyer will have to complete KYC formalities on the provider’s platform. BNPL providers use analytics to get insights on buyers’ purchase behaviour and determine their credit worthiness. Typically, this option targets millennials offering them easy access to credit for small-ticket purchases.

Why is there so much of buzz around BPNL in recent times?

BNPL has been consistently gaining traction and is radically changing payment behaviour in e-commerce sales over the last few years globally. Consumers are quite excited with this service which is evident from its rapid adoption. They clearly envisage BNPL as a convenient and easy solution. It is no wonder that we hear investments and acquisitions happening in this space every day. Below are a few BNPL investments which made news recently.

India based “Simpl” raises $40 million
Switzerland based “ZoodPay” raises #38 million in their latest round
Australia’s “Openpay” raises $271.4 million
Mexico based “Alpazo” raises $27 million
UAE based Taby raises $50 million in its series B round

While BNPL companies are surging on with valuations even higher than 50+ revenue multiples, many are yet to be profitable in global markets. This once again drives the point that BNPL companies are after customer acquisition, simple as that!

Interestingly, there are global payment solution providers such as PayPal and Square who have integrated this offering as part of their existing solutions. Stand-alone BNPL players will require to up their game in wooing customers with rewards and freebees in the future…just like traditional credit cards.

While there are several views around the pros and cons of BNPL, one thing we are sure of is that these fintech solutions are certainly going to eat into the spend and revenues of traditional banks credit products. Point of Sale financing is growing at a much faster rate than any other unsecured lending products (source Federal Reserve, TransUnion, Mckinsey Finance consumer pools).

How do BNPL services make money?

BNPL companies incur costs in the form of interchange, network fees, issuer processing fees and credit losses. These elements squeeze their margins constantly. It is pivotal for these organizations to explore revenue opportunities in the form of affiliate marketing etc.,

BNPL services make money from both retailers and consumers. Retailers pay BPNL a percentage of 2 to 8% of the purchasing amount if the customer uses the BNPL facility. While the retailers can realize a 20 to 30% increase in conversions and average ticket size.

Consumers pay BNPL through late fees which range from AED 10 and are capped around 25% of the purchase order on the higher side in most cases.

How does “Buy now, pay later” work?

Buy now, pay later arrangements are point-of-sale instalment loans that allow consumers to make purchases and pay for them at a future date. One needs to sign up with a BNPL facility provider who will make the payment to the merchant while the purchase is being made.

Make a purchase at a participating retailer store (online or offline) and choose “Buy Now Pay Later” at checkout.
The store seeks approval from the BNBP provider within seconds
Consumers typically make an upfront payment toward the purchase, then pay the remainder off in a predetermined number of instalments.
Remaining amounts are paid off in interest- free instalments
Payments can be made via bank transfers, credit cards, debit cards or checks automatically.

Does BNPL affect your credit score?

Most of the BNPL solutions approve a transaction based on a “soft” check or a bureau score-based check. This may not impact your credit score.

What are the eligibility criteria for BNPL schemes in the UAE?

UAE resident with a valid Emirates ID
At least 18 years of age
Hold a valid UAE mobile number and email id
Must have a payment option either a debit or a credit card

BNPL players in the UAE

Name	Taby	Spotti	Postpay	Tamara
Solution	BNPL partnered with Telr payment gateway as well	BNPL	BNPL	BNPL
Eligibility	UAE Resident 18 years and above Valid Emirates ID Valid Phone number Valid Credit or Debit Card	UAE Resident 18 years and above Valid Emirates ID Valid Phone number Valid Credit or Debit Card	UAE Resident 18 years and above Valid Emirates ID Valid Phone number Valid Credit or Debit Card	UAE Resident 18 years and above Valid Emirates ID Valid Phone number Valid Credit or Debit Card
Instalments	4	4	3	3
Upfront	25% of none if payment in 14 days	25%	25%	1/3rd of purchase value
Late fees	AED 15 on day one after payment due date and AED 30 after 2 weeks of payment due date	AED 20 with a maximum of two late fees per order.	AED25 the first time AED30 if not settled within 10 days after the Due Date.	25 AED on the first day of delay, then it will increase every 15 days by the same amount.
Late Fees Cap	AED 105	25% of total order or AED 40 whichever is lower	25% of total order	AED 150 or 25% of order value or whichever is lower
Payments	Visa or Master	All major debit and credit cards.	Mastercard and Visa debit and credit cards.	Visa, Mastercard, or even ApplePay and Amex
Reward	Shoppers create an account on tabby's website or app to earn up to 20% cashback, after making purchases at tabby's partner retailers. Shoppers may then choose to withdraw the cash they have earned or settle upcoming payments on tabby	NA	NA	NA

Conclusion:

BNPL has disrupted the payments industry and has created an impact on credit card companies. Retailers cannot shy away from this new reality and if they do, they will be missing the opportunity BNPL brings in. Retailers must also be aware that customers who are accustomed to BNPL services will look out for retailers with similar service offerings.

While credit cards do carry a much stronger value proposition in the form of loyalty rewards, product features and global acceptance, BNPL services will evolve in the future with such functionalities and create better stickiness with customers.

In conclusion, BNPL is certainly an appealing proposition for consumers. However, one must exercise caution and must not go overboard.

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The editorial team at Soulwallet is committed to accurate and relevant content intended to assist our readers while making personal finance decisions. We are glad to get feedback on the article and make necessary corrections if required. You can email the editorial team at support@soulwallet.com. Our editorial advice, recommendations and product assessments are not influenced by business partners.

Best Cashback Credit Cards in May 2022

Posted on November 17, 2021May 18, 2022 by admin

Cashback credit cards are quite popular among credit card customers in the UAE. It is not easy for one to compare and identify which card offers the highest cashback on specific categories. The purpose of this article is to help customers get an overview of popular cashback credit cards available in the UAE.

Soulwallet’s analysts have done the heavy lifting to review all popular credit cards available in the UAE and provide relevant and useful information which can help you understand the key differences between each card and help one make a better-informed decision while signing up for a credit card.

What is a cashback credit card?

Cashback credit cards are credit cards that offer customers a benefit of earning back a percentage of his or her spend on the card through a direct cash back credit. For example, if a card offers you cashback of 5% on all supermarket spends and you use this card in a supermarket for AED 1,000 in a particular month, the bank will give you a credit of AED 50 (5% of AED 1,000) in your next credit card statement. This means that you have effectively saved AED 50 and your supermarket spend only actually cost you AED 950. Cashback credit cards can be very useful in helping you maximize your savings by simply using your credit card.

You must always be aware of the specific conditions associated with the cash back credit card. Almost all cash back credit cards have very specific conditions on what type of purchases allow you to earn cash back credits. These could be based on categories such as grocery or supermarket purchases, fuel purchases, retail purchase, dining and restaurant purchases and so on. In addition to the specific category of spend almost all cash back credit cards will have limits on how much cash back you can earn. This could be based on a maximum spend per category type, for example, cash back credit on grocery purchases could be capped at grocery spends of AED 3,000 per month. In such a scenario, if the cash back percentage was 5% then the maximum amount you can save each month on grocery spends would be AED 150 (5% of AED 3,000).

Certain banks could also set minimum spend requirements to be eligible to earn cash back credits. Usually, this is based on minimum spends on a specific category of purchases or on the overall total spend on the credit card for the month. For example, a bank could specify that cash back credits can be earned if a minimum spend of AED 1,000 is reached during the month.

The form of cash back given to you can also vary. Some credit cards offer you direct statement credits for the value of cashback earned. These can then be considered as good as a cash payment. Some cashback credit cards offer gift vouchers at specific stores or malls for the value of cashback earned. Some banks may require customers to contact them to redeem cashback miles while others may simply credit the cashback earned to customers without any request having to be placed (automatic cashback).

As you can see, there are a lot of aspects to keep in mind in trying to ascertain the most suitable cashback credit card for you. Having a sound understanding of the cashback conditions of any credit card and your specific spend patterns will help you make an informed decision on the cashback credit card to choose for you. However, since there are more than 200 credit cards in the UAE market and a lot of them offering some form of cashback, it is almost impossible for one to understand which card is most suitable to them. Therefore, a cash back simulator as provided by SoulWallet can be invaluable in saving you the trouble of hours of research in identifying the right credit card for you.

FAB Cashback Credit Card, Mashreq Cashback Credit Card and Rakbank Titanium Credit card are available for customers earning a fixed salary of AED 5000 per month.

Bank	Card Name	Joining offer	Annual Fee	Sal required
Citi	Citi Cashback	AED 500 Cashback as joining bonus	0	8000
FAB	FAB Cashback	AED 300 Welcome bonus	AED 315	5000
Mashreq	Mashreq Cashback	AED 500 Joining bonus (AED 100 for existing card holders)	0	5000
Rakbank	Rakbank Titanium	None	0	5000
CBD	CBD Super Saver Credit Card	None	1st year free 2nd year AMF AED 420	8000
HSBC	Cashback Credit Card	AED 300 cashback gets you started	1st year free AED 313.95 with VAT from second year	10000
Dubai First	Cashback Credit Card	AED 250 bonus cashback Complimentary 1 year Amazon	AED 400	10000
Emirates Islamic	Cashback Plus Credit Card	None	0	12000
Standard Chartered Bank	Cashback Credit Card	None	1st year free AED 525 from 2nd year	8000

Best for “International” transactions

Citibank Cashback Credit Cards has the best cashback rate of 3% unlimited on international transactions. This is followed by FAB Cashback Credit Card and Mashreq Cashback Credit Card at 2%.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
International spend	3%	2%	2%	1% for <15K 2% for >15K Spend Max Cap AED1500	1% on AED 2 spend	1%	1%	NA	2%

Best for “Groceries / Supermarket” related transactions

Fab cashback credit card offers 5% on this category however with a cap of AED 500 in a month. HSBC Cashback credit card offers 3% on this category but with a cap of AED 200 a month. These cards do not have a minimum spend requirement for earning the cashback on these categories.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Groceries / supermarket	2%	5% - MC AED 500	1%	5% - AED 150 and MS 1500	MS >3<10K 3% 75 MS <20K 5% 100 MS >20K 10% 150	3% MC 200	5%	MS >3<10K 3%	1%

MS: Minimum Spend : This is the minimum spend required to earn cashback in this category

MC: Maximum Cap: This is the maximum cashback one could earn in this category

Best for “Fuel” related transactions

FAB Cashback credit card offers 5% on this category with a maximum cap of AED 250 a month. HSBC offers 10% however on a maximum cap of AED 100 a month.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Fuel	1%	5% - MC AED 250	0.33%	0.25%	1% on AED 2 spend	10% MC 100	1%	NA	1%

Best for “Utility” (Electricity, water) transactions

FAB cashback credit card clearly the best on this category with a 5% cashback and a maximum cap of AED 250

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Utilities	1%	5% - MC AED 250	0.33%	0.25%	MS >3<10K 3% 75 MS <20K 5% 100 MS >20K 10% 150	1%	1%	NA	1%

Best for “Online” transactions

Dubai First Cashback card is a clear winner on this category. With no caps and no spend requirement this card offers 5% which is the best among all competitors.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Online	1%	1%	1%	1% for <15K 2% for >15K Spend Max Cap AED1500	1% on AED 2 spend	1%	5%	NA	1%

Best for “Dining” transactions

Mashreq cashback card offers 5% on this category followed by which can go up to 2%, however with a spend requirement to be met. Emirates Islamic Offers up to 5, however with a cap of AED 200. EIB requires AED 3000 of minimum spend for cashback. ADIB Edge card offers 10% cashback on dining. Since it is a reward point card we have not included the same in the comparison.

Bank	Citi	FAB	Mashreq	Rakbank	CBD	HSBC	Dubai First	Emirates Islamic	Standard Chartered Bank
Card Name	Cashback Credit Card	Cashback Credit Card	Cashback Credit Card	Titanium	Super Saver Credit Card	Cashback Credit Card	Cashback Credit Card	Cashback Plus Credit Card	Cashback Credit Card
Dining	1%	1%	5%	1% for <15K 2% for >15K Spend Max Cap AED1500	1% on AED 2 spend	1%	1%	MS >3<10K 3%	1%

Best for other categories

Bank	Card Name	Telecom	Govt	Cinema	Education	Transport
Citi	Cashback Credit Card	1%	1%	1%	1%	1%
FAB	Cashback Credit Card	1%	1%	1%	1%	1%
Mashreq	Cashback Credit Card	0.33%	0.33%	1%	1%	1%
Rakbank	Titanium	0.25%	0.25%	50% - AED 70 MS 5000	0.25%	0.25%
CBD	Super Saver Credit Card	MS >3<10K 3% AED 75 MS <20K 5% AED 100 MS >20K 10% AED 150	1% on AED 2 spend	1% on AED 2 spend	MS >3<10K 3% AED 75 MS >20K 10% AED 150 MS >20K 10% AED 150	MS >3<10K 3% AED 75 MS <20K 5% AED 100
HSBC	Cashback Credit Card	1%	1%	1%	1%	1%
Dubai First	Cashback Credit Card	1%	1%	1%	1%	1%
Emirates Islamic	Cashback Plus Credit Card	MS >3<10K 3% MS <17.5K 5% MS >17.5K 10% MC 200 per category	NA	NA	MS >3<10K 3% MS <17.5K 5% MS >17.5K 10% MC 200 per category	NA
Standard Chartered Bank	Cashback Credit Card	1%	1%	1%	1%	1%

Few important points to consider on the below cards

CBD Supersaver Card

Maximum cap of AED 3000 across all categories.
Spend based earning of rewards per category.
Maximum cashback of AED 600 across 4 BEST categories.
Minimum spend of AED 3K required

Rakbank Titanium Credit Card

All domestic and international transactions under the category of Charities, Government Services, Bill Payments, Schools, Education, Transits, Transport, Telecommunication, Real Estate, Petrol/Gas stations, Health & Beauty, Club Membership, Computer Services, Automobiles & Vehicles and Insurance Services will earn 0.25% cashback for every AED 1 spent.

all domestic and international transactions under the category of Charities, Government Services, Bill Payments, Schools, Education, Transits, Transport, Telecommunication, Real Estate, Petrol/Gas stations, will earn 0.25% cashback for every AED 1 spent.

Emirates Islamic Cashback Plus Credit Card

A minimum spend of AED 3000 is required for earning cashback.

FAB Cashback Credit Card

Telecom excluded in utilities category
Caps for Groceries, Fuel and Utilities and no caps on other categories.

Above review is based on analysis done during the month of February 2021. The product features such as category rates, caps, spend requirement, AMF or joining offers can change. Readers are requested to validate the specifics with the banks at the time of application.

—

Expo 2020 Dubai is all about opportunities and positivity. Find out why we say this!

Posted on October 4, 2021October 4, 2021 by admin

Celebrating human brilliance and accomplishments across various platforms, Expo 2020 Dubai is the largest event taking place in the UAE. Scheduled between 1^st October 2021 to 31^st March 2022, Expo 2020 Dubai is bringing in exciting new opportunities, innovation, technology, knowledge, and ideas unlocking the potential to shape the future. With 60+ daily shows, 200+ restaurants, and 200+ pavilions, Expo 2020 Dubai is a chance for people from all over the world to connect and experience an immersive cultural experience. Explore each of the 191 participating countries and meet people who are making our world brighter and setting a global stage for business worldwide to thrive together. Addressing global challenges, the subtheme of Opportunity, Mobility, and Sustainability open doors to help preserve the planet and create a better world. Expo 2020 is a chance for people from all over the world to connect and experience the best of science, inventions, art, and culture and to set into motion concepts and ideas to make a permanent impression on the world.

For the duration of the Expo, Dubai as the host of Expo 2020 will be a must-visit family destination, with thousands of events and amazing exploratory experiences happening. Get your tickets online and choose either from Season Pass, Multi-Day Pass, or 1-Day Ticket that adults ages 18 to 59 can purchase at the official site of Dubai Expo 2020 or from one of their authorised ticket resellers. Kids and youth under 18, tertiary and higher education students, seniors 60 years and above, and people of determination can get free tickets for the entire duration of Expo 2020 Dubai. Be a part the greatest global gathering and explore Dubai as you visit the World Expo 2020 to find excitement and adventures in this modern-day Oasis.

To get the best experience of Expo 2020 Dubai Emirates NBD introduces Expo 2020 Dubai account

As the Official Premier Partner of Expo 2020 Dubai, Emirates NBD is offering a special, tailor-made banking package for SMEs registered on the Expo 2020 Dubai Online Marketplace. The package will help meet the needs of these small and medium-sized enterprises (SMEs) that would like to participate in the next World Expo and give them the boost they need to accelerate towards a brighter future.

Features and Benefits of Emirates NBD’s Expo 2020 Dubai account:

For the first 12 months, no minimum average monthly fees
After the first 12 months, one of the lowest minimum average balance requirements in UAE (AED 10,000)
Unlimited free cheque books
Preferential pricing for your banking transaction, foreign exchange, and telegraphic transfer (TT)
To cover all your banking needs, a dedicated team of Relationship Managers at your service
A team of experienced Trade Specialists and Wealth Advisors to cater to your trade and insurance-related banking requirements
Trade Finance support for short term financing requirements
Working capital support and commercial loans at attractive terms

The world’s biggest cultural gathering the Expo 2020 Dubai, calls for world-class payment solutions for their guests and enthusiasts. As a premier partner and the official banking partner of Expo 2020 Dubai, Emirates NBD Group has joined with Mastercard, which is the official payment technology partner of Expo 2020 Dubai and created two exclusive new card programmes. These limited-edition cards are designed to enhance the Expo 2020 Dubai experience for both the residents of UAE and the visitors that come to enjoy Expo 2020 Dubai from across the globe. Emirates presents Emirates Islamic Expo Mastercard Credit Card and the Emirates NBD Expo Mastercard Prepaid Card.

Emirates Islamic introduces Exclusive Expo Credit Card Limited edition.

As the Official Islamic Banking Partner of Expo 2020 Dubai, Emirates Islamic, part of the Emirates NBD Group, along with Mastercard and Expo 2020 Dubai have created an exclusive, limited edition, co-branded credit card that offers a wide range of specially designed benefits and privileges catering to the lifestyle and travel needs in the UAE for this iconic event.

Features and Benefits of Exclusive Expo Credit Card Limited edition:

No annual fee
50% cashback on first Expo 2020 Dubai ticket
10% cashback on fuel spends
Complimentary valet parking service at the Expo 2020 Dubai site
Complimentary golf sessions, exclusive dining offers, and access to more than 1,000 airport lounges worldwide
Access to exclusive travel, hotels and lifestyle privileges offered by Mastercard
Up to 5,500 bonus Upoints by Emaar
EI SmartMiles on all spends with multiple redemption options
Accelerated EI SmartMiles on Expo 2020 Dubai & Emaar Spends
Gain U By Emaar Gold Tier Status

Emirates NBD Expo Mastercard Prepaid Card

The Emirates NBD Expo Mastercard Prepaid Card is a digital-first offering that is issued via a dedicated mobile App called Joyn which is officially from Emirates NBD. This card is available to both UAE residents and international visitors for use while in the UAE. The card provides a hassle-free and fully digital payments experience.

Features and Benefits of Emirates NBD Expo Mastercard Prepaid Card:

Offers from Emirates NBD’s Bon Appétit, LiveWell and Good Times programmes
Offers from Mastercard’s Priceless Platform
Access to privileges, deals and discounts of up to 50% at more than 2,000 shopping, dining, wellness, and entertainment touchpoints.
Access to exclusive and personalised Expo-related offers.
Make online purchases as well as contactless in-store payments by adding their card to their preferred digital wallet (Apple Pay, Google Pay and Samsung Pay).
Customers can also receive a linked physical card if needed.

SoulWallet helps you compare and find the best credit card suited for your needs to have an easy and hassle-free experience. SoulWallet grants their users services that would help them make the most of a wide range of personal finance solutions, from credit card reward cards in the UAE, to personal loans, to Islamic credit cards, to air miles credit card application and a lot more.

The well-researched, solidly structured, unbiased content along with unique tools at SoulWallet help you make well informed personal finance decisions. In the process, SoulWallet helps you identify the options that will let you save money and enjoy the best perks.

At Expo 2020 be a part of the action. Whether you are looking for business opportunities, unleashing your inner techie, channelling your creativity, diving into a world of flavours, or splurging to your hearts content.

What are the Eligibility Criteria for Personal Loan in the UAE for Expats?

Posted on August 24, 2021August 26, 2021 by admin

Banks in UAE offer two types of personal loans to expats – personal loans without salary transfer and personal loans with salary transfer.

Personal Loan Without Salary Transfer: Personal loan in UAE without salary transfer provides the loan applicant to apply for a personal loan without having to transfer their salary into a particular bank account. Citibank, FAB or some banks offering loans without salary transfer.

Personal Loan With Salary Transfer: Personal loan in UAE with salary transfer rewards the loan applicant to maintain an account with the bank by transferring their salary into it every month. ENBD, Mashreq, FAB and Citibank are some popular salary transfer loans in the market.

One must always opt for loan with a salary transfer as these loans carry an attractive interest rate compared to the ones without a salary transfer. In general, a personal loan without a salary transfer is opted by those who either do not have their company listed by the banks for a salary transfer loan or for those who are looking for a second loan.

Eligibility Criteria for Personal Loan in UAE for Expats

Eligibility criteria differ from bank to bank based on the applicant’s profile. Here are some of the basic eligibility requirements for a personal loan in UAE for expats:

Minimum Income: Banks in UAE have different requirements for the minimum monthly income of expats for personal loans. While the minimum requirement is AED 5000 fixed salary per month, most of the banks have their entry level criteria ranging from AED 7000 per month. The higher the income the better are the options.

Employment Status & Listed Company: This applies to salaried individuals. While some banks give approval with company listings, some banks in UAE require expats to be employed in their listed companies. Listed companies are those which have been categorized or scrutinized by the banks as companies eligible for such a Salary transfer loan for its staff. The listing is basically done on the company credibility such as years in business, number of employees, setup and other factors.

Salary Transfer: Some banks in UAE require salary transfers for personal loan approval.

Age: The maximum age of applicants is 60 and the minimum age is 21 for applying for a personal loan in UAE.

Documents: The applicants are required to provide the following documents to apply for a personal loan:

For Identification of the Expats:

Copy and Original Emirates Identity Card
Resident Visa proof
Address proof (for example utility bill)
Security Cheque (Undated)

For salaried expats:

Salary transfer letter or salary certificate
Bank statement of the previous 3 months

For Self-employed Expats:

Power of attorney
Memorandum of Association
Trade license
Bank statement of the previous 6 months

Credit history – Customers applying for personal loans in UAE should have a good credit score with a good credit history. A good credit report shows that the applicant is eligible to repay the loan. Applicants with high credit score can get preferential interest rates from banks. Minimum Credit Score ( Al Etihad Credit Bureau Score) starts from 651. The better the score the lower the interest rate in general.

Proof of Residency – Almost every bank offers loans for expats but it is difficult to find a bank that can offer personal loans for non-resident expat. Expats can apply for personal loans that can provide residency proof by providing a passport with a valid visa.

Loans for Self-employed Customers: Some of the banks such as RAKbank, ADCB and DIB provide loans to self employed customers. The criteria usually is the years in business, Nature of business and Average Annual Turnover.

Best Personal Loans of 2021: Offers & Benefits

Best Personal Loans of 2021: Top Offers & Benefits

Posted on July 27, 2021July 27, 2021 by admin

A personal loan is a loan borrowed to pay for personal expenses such as medical bills, travel, and much more. Such loans may or may not be secured. Secured loans require some type of collateral as a condition of borrowing. Personal loans are convenient because you need to repay the loan amount in small installments and you get the loan approved with minimum paperwork. When it comes to a personal loan in UAE, many banks have interesting offers with easy application process. To help you choose the best personal loans as per your requirements, we have listed down a few popular personal loans offered by banks in the UAE along with top offers in 2021.

Citi Bank Personal Loan

If you are searching for a personal loan without a salary transfer, a Citi bank personal loan can be the best option you can go ahead with. They also have a salary transfer loan option with attractive interest rates. Some of the features that please the borrowers are:

Minimum Documentation
Loans of up to AED 175,000 (No Salary transfer required)
Loans of up to AED 250,000 (Salary transfer to Citi required)
Fast provisional approvals – in 1 day
Tenors from 6 months up to 48 months
Instant loan funding upon final approval
Citibank offers personal loans to companies which are not listed as well.

Please note minimum salary required to apply for this loan is AED 8000 per month.

Tip:

Your salary must be transferred to a bank. Your bank statement must evidence a minimum of AED 8000 as monthly salary for the last three months.

You must have a good credit history. Click here to find out more on how to maintain good credit history.

First Abu Dhabi bank Personal loan (FAB)

Whether you are a UAE national or an expat, FAB bank offers some attractive and best personal loans options for you. Some of the features that make FAB loans popular are:

High loan amounts of up to AED 5 million for UAE nationals and AED 2 Million for expats.
Flexible repayment terms of up to 48 months (60 months for Ministry of Defense employees)
90 day grace period for the first payment
Quick and seamless processing
Minimum documentation
Comprehensive personal life insurance coverage
Rates from 3.99% variable per year

Please note minimum salary required to apply for this loan is AED 7000 per month. A Salary transfer letter is required.

Tip:

Your salary must be transferred to a bank. Your bank statement must evidence a minimum of AED 7000 as monthly salary for the last three months.

You must have a good credit history. Click here to find out more on how to maintain good credit history

Emirates NBD Personal Loan

Emirates NBD has loan options for every category including self-employed. ENBD loans have some of the best rates and offers allowing everyone to easily obtain funds for their personal needs. Some of the best features offered under personal loan categories are mentioned below:

Low-interest rates
7-day Loan Return Option
Maximum tenor up to 48 months
FYF Card with Eligible Miles / Points ü Overdraft (OD) with First Year Free Setup (Nil First Year Set Up Fee
Free Bank Account with no minimum balance required
No collateral or guarantor required
Easy process and simple documentation
First payment day deferral upto 75 days for expats -Applicable to all schemes under Personal Loan product

Please note minimum salary required to apply for this loan is AED 5000 per month. A Salary transfer letter is required.

Tip: Higher the credit score better the interest rate. This is a standard norm across the market. Banks wants to ensure that the customers to whom they are lending have a good credit history.

Dubai Islamic Bank Personal Loan (DIB)

A loan is provided to both UAE nationals and ex-pats by DIB. DIB also have some personal loan offers and features that are attractive, they are:

Upto AED 4 million for UAE Nationals and AED 2 million for Expats
First installment payment grace period up to 120 days
100% processing fee waiver
The simple and easy documentation process
Free ADIB VISA Cashback Card for the first year
Complete education expenses financing
Two free installments postponements every year

Please note minimum salary required to apply for this loan is AED 3000 per month. A Salary transfer letter is required.

Tip: Company must be listed with DIB. Better chances if your salary is currently being transferred to DIB.

All the features and offers will vary depending upon the type of personal loan. To summarize you will have a good chance of getting your personal loan approved with the following

Maintain good credit history, make payments in time on your other credit facilities.
Compare and find loans that are suitable for your requirements. Note, loan amounts and interest rates are key deciding factors.
Watch out for special offers on loans, these are generally not publicly available as banks offer special rates and offers for specific segments based on their internal criteria. You can write it to us at support@soulwallet.com for best offers in town.

We hope the above article is helpful in your search for personal loans in UAE. Please do review our loans listing page for more details and EMI calculators, which will help you make a quick and proper decision. Click here to apply for personal loans online.

How to Effectively Manage Credit Card Transactions during COVID-19

Posted on July 25, 2021July 27, 2021 by admin

The impact of the COVID-19 pandemic is devastating, and it has made keeping up with monthly bills and payments a huge challenge. To ease the tension, banks and credit card companies have come up with offers & policies to provide financial relief to their customers.

If you have credit card debt and are finding it difficult to manage the payments during the coronavirus pandemic, this article will guide you on how you can manage your credit card bill payments. These Credit card companies in UAE are offering the following relief measures:

Most banks, financial institutions, and credit card companies are offering help during these uncertain times, but it can vary depending on the credit card issuer.

Here are some offers by UAE banks, you can check with your card issuer for offers other than these:

HSBC Bank: Customers who are stressed about making their credit card payments during COVID-19 pandemic can have a payment holiday for up to 3 months. HSBC credit card holders can delay their bill payments including the minimum payment for up to 3 months, but during this time interest will be incurred as usual on the outstanding balance and to all the new transactions made during the payment holiday period. However, the credit card limit will be reduced to AED 5,000. Once the payment holiday is over, the card holders will be expected to resume the payments.

Contact information to get help:

Write an email at contactus.me@hsbc.com
Call their help centre at 800 5233/ 800 4320/ 800 4420

Abu Dhabi Islamic Bank: ADIB has increased the temporary limit o ADIB cards and, they have also introduced 5% cashback on utility & grocery bills for 3 months. ADIB has been active & responsive to the needs of their customers. They have also come up with no cost instalments schemes for card expenditures for a period of 6 months.

Contact information to get help:

Contact their help centre at 600503033

First Abu Dhabi Bank (FAB): FAB is one of the largest banks in the UAE and has declared some COVID relief measures for its customers. FAB has decided to cover the interest charges of all the customers along with relief on fees as well as repayments since April 2021. The bank has also waived off FX fees on cancel hotels and airline bookings along with temporary 50 percent reduction on late payment fees for 3 months.

Contact information to get help:

Use the registered email id to seek help by writing to here2help@bankfab.com
Request help using their Mobile App

Abu Dhabi Commercial Bank (ADCB): ADCB has deferred payments up to 6 months for their customers along with other relief measures for people who fall under COVID- 19 Targeted Economic Support Scheme category.

Contact information to get help:

Write an email seeking help at contactus@adcb.com
Call the contact centre at 600 50 2030 or 600 56 2626 (Islamic Banking)

Standard Chartered Bank (SCB): SCB has reduced cash advance fee by 50% with zero percent interest rates on EMI and zero processing fee. If you have made travel bookings with your Standard Chartered Bank, you can get a refund. Card holders have to submit the below documents to avail the benefits of the bank:

A letter from your employer stating that COVID-19 is the reason behind your termination.
A document showing COVID-19 restrictions have affected repayments of your credit card bills.
An attested letter from the Ministry of Health saying you were infected by COVID-19.
Bank statement showing a loss of up to 20% monthly revenue of those who are self-employed.

Contact information to get help:

Write at covid.19relief@sc.com for help

Here are some tips to help you manage your credit card bills and help you survive in the uncertain times.

Set up a budget and stick to it to avoid late and excess payments.
Lower your non-essential expenses to reduce the burden of debt, managing a credit card is easy if you maintain your expenses.
If you have more than one credit card and are in a financial situation, try clearing the card by paying minimum dues on each card starting from the one with higher interest rates.
Avoid withdrawing cash from credit card to prevent high interest rates and high fees.
If you are shopping on monthly instalments try to opt for 0% EMI plan.
If you have higher interest rates on a bank you can transfer the balance to a card with lower interest rates to avoid hassle later.
To avoid credit card debt, decrease your expenses instead of increasing your credit limit.

To Conclude

If you have credit card from banks other than the ones we have mentioned then, please reach out to your banks and understand the benefits they are offering to provide you with a financial relief during COVID-19 pandemic. Follow and stay updated with the COVID-19 relief measures given by banks. We also strongly recommend that you check out our article on how credit cards can come in handy in such situations. Click here to find out more.

List of best Emirates Skywards Credit Cards to earn Skywards miles.

When it comes to figuring out which Emirates Skywards credit cards are the best for earning Skywards Miles it is important to keep the below in mind:

The below tables have details of the Emirates Skywards miles one can earn based on the specific transaction types for every Skywards credit card offered in the UAE.

* European Economic Area transactions will only earn 0.375 Skywards miles per USD of spend. ** these categories earn only 50% of the Skywards Miles If the total spend in these categories is LESS THAN 50% of the total spend on the card.

What is digital banking?

Online Banking:

Mobile banking:

Who offers Digital Banking?

The difference between Digital Banking and Online Banking

Types of digital banks

Advantages of Digital banking

Digital banking tips

Digital transformation in the banking sector of the UAE

Top Digital Banks in the UAE

What is Islamic Finance?

Principle of Islamic Banking

Things Prohibited in Islamic Finance

Things Permitted in Islamic Finance

Some permissible Basic Investment Vehicles are:

Who makes the rules for Islamic Finance?

Growth of Islamic Finance

The Bottom Line

Digitalisation in Banking

Customer Experience in Banking

What are the Customer Expectations from Digital Banking Experience?

Three ways Banks can conquer Customer Experience in Digital Banking

Tips to Improve Digital Transformation

Trends Reshaping Customer Experience in Banking for 2022

Popularity of Digital Banking in the UAE

Banks and Financial Institutions Driving Customer Engagement for Banking in the UAE

What is “Buy now, pay later”?

Why is there so much of buzz around BPNL in recent times?

How do BNPL services make money?

How does “Buy now, pay later” work?

Does BNPL affect your credit score?

What are the eligibility criteria for BNPL schemes in the UAE?

BNPL players in the UAE

Conclusion:

What is a cashback credit card?

Best for “International” transactions

Best for “Groceries / Supermarket” related transactions

Best for “Fuel” related transactions

Best for “Utility” (Electricity, water) transactions

Best for “Online” transactions

Best for “Dining” transactions

Best for other categories

CBD Supersaver Card

Rakbank Titanium Credit Card

Emirates Islamic Cashback Plus Credit Card

FAB Cashback Credit Card

To get the best experience of Expo 2020 Dubai Emirates NBD introduces Expo 2020 Dubai account

Features and Benefits of Emirates NBD’s Expo 2020 Dubai account:

Emirates Islamic introduces Exclusive Expo Credit Card Limited edition.

Features and Benefits of Exclusive Expo Credit Card Limited edition:

Emirates NBD Expo Mastercard Prepaid Card

Features and Benefits of Emirates NBD Expo Mastercard Prepaid Card:

Eligibility Criteria for Personal Loan in UAE for Expats

Here are some offers by UAE banks, you can check with your card issuer for offers other than these:

Contact information to get help:

Here are some tips to help you manage your credit card bills and help you survive in the uncertain times.

To Conclude

* European Economic Area transactions will only earn 0.375 Skywards miles per USD of spend.
** these categories earn only 50% of the Skywards Miles If the total spend in these categories is LESS THAN 50% of the total spend on the card.