Digital finance redefines festive transactions: Al-Arafah Islami Bank PLC

Mohd. Rafat Ullah Khan
Managing Director & CEO
Al-Arafah Islami Bank PLC

For us, “smart spending” is not just about discounts. It is about responsible usage. We encourage digital payments instead of carrying large amounts of cash. We provide structured installment options so that customers avoid impulsive borrowing. We also link benefits to disciplined usage, such as annual fee waivers after a certain number of transactions.

The shift away from cash-heavy markets toward seamless digital payment ecosystems marks a turning point for the local banking sector. Mohd. Rafat Ullah Khan, Managing Director & CEO of Al-Arafah Islami Bank PLC, emphasises on  the surge in digital adoption during this festive season.

The Daily Star (TDS): With the holy month of Ramadan approaching, how has your bank observed a shift in consumer spending behaviour over the last few years?

Mohd. Rafat Ullah Khan(MRUK): Over the past few years ramadan spending has evolved from cash-heavy, physical shopping to disciplined digital planning. Customers are now budgeting in advance for Eid, lifestyle, and travel, utilising Shariah-compliant tools like Mudaraba savings and DPS. Additionally, charitable giving, such as Zakat and Fitrah, is becoming more structured through banking platforms. This shift toward digital transactions and proactive financial management reflects a positive trend in Shariah-conscious consumer behaviour.

TDS: What trends are you seeing regarding the transition from cash to digital channels (Cards, Apps, MFS) for Iftar, Sehri, and Eid shopping?

MRUK: During ramadan we see a sharp increase in debit and credit card transactions, mobile app usage, Bangla QR payments, and MFS transfers. Customers now prefer paying with cards or QR codes. It is simply more convenient. People want convenience and safety.

TDS: What you elaborate on the specific campaigns, discounts, or any offers your bank is structuring for Debit and Credit cardholders this season? How do these initiatives promote “smart spending”?

MRUK: This Ramadan, we have designed comprehensive value-driven campaigns, particularly for our La-Riba Credit Cardholders. We are offering discounts at different catagories of retailers and service providers. For dining, we have introduced attractive Buy-1-Get-1 and similar offers. In addition, we are providing installment facilities under Shariah-compliant structures, including 0% profit EMI at selected merchants.

TDS: Ramadan is a peak season for inbound remittances. How is your bank facilitating real-time remittance distribution, perhaps through MFS channels, to ensure that families in rural areas receive funds instantly for their Eid preparations?

MRUK: To manage the Ramadan remittance surge, we provide real-time account credits and instant MFS disbursements. Leveraging our rural agent banking network and automated SMS alerts, we have reduced processing times from hours to minutes, ensuring families, even in remote areas, receive funds immediately for Eid preparations.

TDS: Are there specific features bridging your Core Banking Solution (CBS) and wallets to facilitate effortless Zakat payments or Eidi transfers?

MRUK: Yes, we have strengthened the integration between our Core Banking Solution and digital channels to make religious and seasonal transfers easier.

Customers can calculate Zakat through our mobile platform and directly pay from their Mudaraba accounts to registered charitable institutions.