How Al Baraka Bank's innovative approach transforms Islamic Finance landscape

Since his appointment as CEO of Al Baraka Bank (Pakistan) in 2022, Muhammad Atif Hanif has led a transformation centred on culture, innovation and differentiation. As part of the Bahrain-headquartered Al Baraka Banking Group, Hanif’s focus has been on unlocking domestic potential and leveraging international engagement.

An initial step saw Hanif launch an employee-led strategy based on improved remuneration and benefits, including Takaful for parental health. “This created immediate trust and positive momentum across the bank,” he explains. Tangible results followed, with profitability led by high-powered team building, innovation and a focus on creating value for customers and shareholders.

A flagship initiative, the Al Baraka Group Inter-Franchise Collaboration, launched in 2023 to connect Pakistani exporters with new markets through webinars – starting with South Africa. “We were the first bank globally to launch a customer-facing product of this type across multiple international jurisdictions,” notes Hanif. Supported by an internal trade finance portal spanning 13 countries, providing B2B connectivity to customers across the group, the initiative earned international recognition as a transformative banking technology platform.

Beyond trade, Al Baraka (Pakistan) sits at the intersection of Islamic finance and economic development, with the halal economy a key platform. The bank hosted Pakistan’s first halal economy conference and supported exporters at the London Halal Forum, showcasing the potential of halal products across poultry, confectionery, food and halal fashion.

Other key initiatives include building a bespoke platform for private Hajj operators, which grew segment market share from 18% to 60% in two years, and the introduction of a lecture series for corporate and SME customers on family business, led by a renowned international scholar. “We consistently create new initiatives to enhance our value proposition for all stakeholders, while strongly repositioning the bank in a highly competitive industry,” Hanif says. Backed by a growing presence in cross-border digital banking and Islamic trade finance, the bank offers natural synergy with GCC-based investors and institutions.

That synergy is crucial as the Pakistani diaspora in the UAE continues to grow and economic ties continue to strengthen. “From a banking perspective, Pakistan has enormous potential,” Hanif says, noting that as many as 100 million adult Pakistanis are currently unbanked. In an economy with increasingly diverse opportunities, he also points to retail, manufacturing, construction, transport, education, tourism, mining, fisheries, textiles and information technology as sectors holding significant investment potential.

As a banking innovator with interests across that economy, the trajectory for Al Baraka (Pakistan) is clear. “Our strategy has been brand-building and digitalisation with a focus on expanding the customer base across segments including corporate, SME, retail banking and home remittances, leading to balance sheet growth and profitability,” says Hanif. “Our credit rating improved from A+, where it had stood for about 30 years, to AA- within two years, driven by a strengthening brand and high-quality retail and advances growth.” The bank also paid its first dividend in 35 years. With strong fundamentals in place, the bank has already demonstrated the success of its model – and stands ready to scale new heights of growth and expansion.