Financial Services (105)
Baby banking steps
The Abu Dhabi Islamic Bank launched a product named ‘Banoun’ which is an account for children aged 8 and above. To appeal and grab their imagination, they created a character called Darhoom that tells the kids stories about how to save and manage their allowance.
Why it matters
Not only does this program help kids understand the concept of finance at an early age, it encourages parents to become more responsible by investing into their kids’ future. While this concept may be familiar in many western markets, it’s an innovative one for an Islamic bank in the Middle East. Will this encourage all other banks to open up to a new, even younger, Arab generation?
A southern Spanish village has started using a new currency, complementary to euros, called “Pitas”. Pitas can be changed to euros or labour time, where one Pita is valued at one euro or six minutes of labour. So users of the currency can buy whatever they need and pay with 24 minutes of ironing or washing dishes if that is the value of the product or service.
To avoid seeing a devaluation of the currency, it must be used within the first 3 months or it loses 10% of its value. It also has an expiration date and its total value will be lost if it’s not used within a year.
The village celebrated its 1st Pitas fair, a marketplace where people used euros or labour to obtain pitas or buy products they needed with the currency.
Microcredit company Fair Finance in the UK is the first in Europe to secure financing from commercial banks to expand its business model. credit and payment solutions for exporting companies, limiting the risks of business abroad, helping the country to reduce its deficit. But will this campaign be enough to restore the public confidence in financial institutions and banks - widely perceived as being accountable for the crisis?