Company Focus: Hada DBank
In November 2017, Hada DBank, which intends to be the first digital bank to fuse Islamic banking with blockchain technology, launched its pre-initial coin offering (ICO), with an aim to raise about US$5 million for its development and to be ready to start operations during the second quarter of 2018. MARC ROUSSOT reports.
Hada DBank is quite an ideal utopia as a financial institution. Its concept lies in the idea that with blockchain technology, transactions between customers, merchants and even banks can be secured, transparent and seamless, while Islamic banking provides customers with a fair system underpinned by principles like the sharing of losses and profits.
“If you bring these two platforms together, you obtain an ideal banking system and this is what Hada DBank strives for,” states Linda Azmi, the chief marketing offi cer of Hada DBank.
The bank finds its roots in a joke made during a discussion between a group of friends on the subprime mortgage crisis and how the banking system may impact everyone’s lives. “‘Let’s set up our own bank,’ said someone, and what was originally a joke became a serious discussion and a real project in early 2016,” explains Linda.
The strategy
Hada DBank is about to apply for a license from the Swiss Financial Market Supervisory Authority and the Financial Conduct Authority in the UK, as both countries have introduced dedicated regulations supporting the development of the fintech industry.
In the beginning, the bank will focus its efforts on the EU where customers are more open to digital banking than in other parts of the world.
In addition, Hada DBank’s headquarters will be in Zug, Switzerland. Later, Hada DBank will tap the Asean market where the project had initially started, as the founders are all Malaysians.
Hada DBank will primarily target the retail market and more precisely customers between 21 and 45 years old given that they are more tech-savvy. The product offering will comprise an e-wallet, savings accounts and financing products. Discussions have already been initiated with several merchants for them to accept HADACoin, Hada DBank’s cryptocurrency.
Tapping the unbanked population is also part of the strategy. “There is currently a lot of movement of population triggered either by natural disasters or wars and conflicts, so we are targeting the refugees and immigrants, including illegal immigrants who are unbanked because they do not have the proper documents. We are also targeting the illiterates,” shares Linda.
Depending on the success of its strategy, Hada DBank plans to tap the wholesale market in 2019 and, aft er five years of operations, aims to have two million customers, US$100 million in deposits and US$50 million of assets under management.
*Article was originally published in the Digital Magazine by Islamic Finance News, Volume15.Issue1, 02 January 2018.
