Vision remains but mission revisited by Bank Rakyat for the members and by the members

What is it about?

Bank Rakyat, another case study, was established in 1954 as a co-operative bank and transformed itself to Islamic banking system only in 1993. As proclaimed that all the management practices are according to Islamic principles and Shariah guidelines ever since, the bank is transformed. The organization's stakeholders are convinced by the management that it will no longer practice conventional banking system anymore. The bank has become a full-fledged Islamic financial institution gradually by 2003. The steps are mostly to ensure that Bank Rakyat's personnel are equipped with Islamic knowledge and virtues. This is due to the need for managing change to avoid resistance, hence training and development is utmost necessary.

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Photo by Clemens van Lay on Unsplash

Photo by Clemens van Lay on Unsplash

Why is it important?

Since the membership of the cooperative is based upon pluralism and members are from different background and practicing different faith hence the Islamic business transaction is not solely for Muslims only. That's the reason why the name of the bank does not consist of any Islamic name compared to Bank Islam and Bank Muamalat whereby from the name of the banks, people know that these are Islamic banks. The perceptions of non-Muslims therefore are that banks that have Islamic names are specifically for Muslims alone. Customers of Bank Rakyat can be from any race, color, and religion.

Perspectives