BankSmart (follows Islamic practices but is shown as conventional)

How it works?
- Generates a unique IBAN
- Segments of customers
1. NBFI (Non-Banking Financial Institutions)
2. Individual
3. Corporate
4. Financial
- Digital account opening (Email, ID, fills in the necessary fields automatically, the process
is to be completed in 7 minutes (Bahrain), IMTF screens the process for signaling to
proceed with the account opening {Green, Red or Yellow signals}, KYC is approved
thereon, IBAN is assigned)
- Bahrain requires a call for further verification.
- Dubai requires a ‘selfie check’. Bank also puts a threshold on the percentage of face
recognition. (4 to 5 minutes to have an account)

 The bank flags such individual that are forbidden by court through the state bank as
people who are forbidden to have an account; PEP: Politically Exposed Personnel.
 Kuwait was the first country to have a virtual bank.

Retail a/c products of the bank (Requires an IBAN, requires clearance from IMTF aka
individual account, limit on transfers)
 Current account (Not allowed to have 2 current accounts in retail, depending on the bank)
 Savings account (Average balance, Daily balance, Threshold amount)
 CASA account (Current Account & Savings Account)
 Fixed Deposit account
 Home Financing (Loan Accounts)
 Car Financing (Loan Accounts)

Corporate a/c products of the bank

 Current Account (can have up to 5 in corporate, depending on the bank)
 Account Operations
A/c Status:
 Inactive state
 Dormant state (If account isn’t used for 11 months then account is considered dormant)
 Blocked state (account is considered blocked if it is by court’s order or CNIC isn’t
updated, amount cannot be withdrawal)
 Freeze state (is dormant state is continued till 7 years, amount is transferred to the CB)
 Deceased state (the account holder deceased, deposits and withdrawal cannot be made)
 Closed state (no transactions can be performed, whether credit or debit)

 Bank loans, Home financing, over daft facility work as negative balances in the bank.
 CIF: Customer Identification Number
 UI: User Interface
 UEX: User Experience
 GUI: Graphical User Interface
 SOC: Schedule of Charges (Revised within the FY)

Modes of Implementation
 Centralization (Pros: Updates the information automatically to all branches, Cons: If
EOD got delayed in one branches then it could act as a hindrance to the rest of the
branches’ EOD)
 De-Centralization (Cons: the info isn’t shared to any branches, any further updates are
not synced with any branches of that bank)
 Hybrid (Pros: All the info is stored at the Central Hub, it isn’t shared with any of the
other branches unless there is a new account opening, only client info is shared with the
specific branch, the branch itself holds all transactional info about that client. No info is
shared regarding the number of accounts opened by that individual to the other branches)