Cover Story: Shabir Chohan – Banking success in the digital era

En route to her residence in the north of Joburg, I’m going to great pains reviewing my questions for a weekday morning interview.

To be a leader in the banking sector requires a distinctive blend of qualities, including exceptional leadership skills marked by vision, strategic thinking, and the ability to inspire and guide teams toward achieving organisational goals.

Shabir Chohan’s academic and professional journey shaped his approach. His commitment to innovation and the philosophy of Islamic banking have equipped him to confront the challenges and opportunities presented by the digital transformation of the banking industry and to integrate sustainability and ethics into Al Baraka Bank’s operations.

The path to leadership

From a young age, Chohan had a passion for numbers and finance that led him to pursue a career as a chartered accountant. He graduated with distinction from the University of KwaZulu-Natal, securing the top position in his class, and joined Coopers & Lybrand, now PwC, in 1987.

‘After serving my articles, I gained valuable international experience with the firm in London before returning to South Africa to join a large family-owned clothing business, where I learnt more about local and overseas markets. It was an invaluable experience to contribute to that business’s growth and long-term success.’

His career then took a governmental turn when he was headhunted in 1996 to join the KwaZulu Finance Corporation, which later became the Ithala Development Finance Corporation. As a young financial whiz, he managed a team of older and more experienced people. In 2000, at the age of 35, Chohan was appointed as CEO, a position he held for three years before moving to Al Baraka Bank South Africa, initially as a consultant. He was named CEO in December 2004. In addition, he has also been a non-executive director at the South African Banking Risk Information Centre (SABRIC) since 2018.

As a leading Islamic financial services company, Al Baraka Bank operates according to the principles of Sharia finance, which prohibits certain financial activities such as charging or paying interest (usury) and investing in businesses that deal with products or services considered haram (forbidden) in Islam, such as alcohol, tobacco and gambling.

The bank offers a range of financial products and services including transactional savings and investment accounts, financing for individuals and businesses, and ethical investment options.

The difference a CA(SA) qualification makes

Chohan attributes much of his success to his CA(SA) qualification. ‘It’s a sector that demands strong financial skills and attributes, and there’s no better qualification than a CA(SA) to hone these skills,’ he says.

‘The qualification instils qualities such as diligence, proactiveness, precision, and trustworthiness, which are critical in my role. The rigorous training that accounting professionals undergo prepares them to advance innovation, handle audits, work in teams, meet deadlines, and manage high-pressure situations. We are also equipped for problem-solving, resilience, and a strong ethical foundation – all indispensable qualities in the financial services industry.’

Embracing technology in banking

Banking is increasingly digital, so staying tech-savvy is crucial. Understanding online banking platforms, mobile apps, and emerging technologies like blockchain and AI is essential for leaders in the sector.

In an era of digital transformation, Chohan acknowledges the dominant role of technology. ‘Banks today must actively engage in digitalising their operations to remain relevant and competitive. South African banks are investing heavily in technological innovation. This is helping them to improve their efficiency and customer service,’ he says.

‘At Al Baraka Bank, we recognised this need early on and invested significantly in a new digital core banking system that serves as the backbone of our operations. This has enabled us to streamline our processes, offer online and mobile banking services, enhance customer experiences, and adapt quickly to changing market dynamics. It’s the foundation for digitalisation and innovation in the bank and allows us to provide efficient, secure, and customer-centric financial services.’

The bank also introduced the Al Baraka banking app, a seamless and user-friendly way for customers to manage their finances, save time, and have less need for physical visits to bank branches.

‘The app helps to improve customer engagement, reduces operational expenses, and allows us to stay competitive in the digital banking landscape,’ Chohan adds. ‘We use robotic process automation to enhance efficiency, as well as extensive use of dashboard reporting. With these tools, I have the flexibility to run the bank from an iPad, which means I’m free from the constraints of a traditional office setup.’

Competing as a small bank

Despite being a small bank, Al Baraka competes effectively with larger counterparts in the industry. Chohan attributes this to the bank’s strategic approach to digitalisation and the evolving needs of clients. With a reduced reliance on physical branches and an increased focus on providing efficient digital services, the bank can offer the same level of client service without the need for an extensive branch network.

Incorporating sustainability in banking

Chohan places a strong emphasis on sustainability in the bank’s operations and investments. This commitment extends beyond typical environmental concerns and encompasses ethical considerations inherent in Islamic banking principles, such as only financing or leasing assets, and promoting ethical and sustainable solutions.

The bank’s adherence to Islamic banking principles will soon see it marketing ‘takaful’, a Sharia-compliant insurance product. The takaful industry has introduced innovations in product offerings, risk management, and distribution channels. While this concept is in its infancy in South Africa, Al Baraka Bank aims to distribute takaful products in partnership with Bryte Insurance to offer Sharia-compliant insurance solutions to customers, pioneering the growth of this sector in the country.

Corporate social investment

Al Baraka Bank is actively engaged in various corporate social investment initiatives. Notably, the bank has partnered with a rural school, providing career guidance, additional classrooms, and educational support to uplift the community. It has also initiated projects in healthcare, sponsoring dialysis machines, and empowering microbusiness owners with critical business skills.

Challenges in the banking industry

Chohan says there are several challenges facing the banking industry. ‘Competition from traditional banks, fintech start-ups, and mobile operators is reshaping the landscape, requiring banks to consider partnerships to remain competitive,’ he says. ‘The rapid pace of digitalisation demands continuous reinvention, and retaining skilled employees can be difficult, especially with the brain drain in South Africa. Young professionals, hungry for knowledge and diverse experiences, often move between institutions, but we nevertheless prioritise training and skill development to equip our employees for success wherever they may choose to go.’

Trust in South Africa’s banking system

Chohan expresses confidence in South Africa’s banking system and its robust regulatory framework. ‘Banks must meet the regulatory requirements of the South African Reserve Bank and manage their affairs accordingly,’ he says. ‘While there have been occasional failures, the interaction with regulatory authorities and the corrective measures taken reflect the strength of our systems. The strict regulations in place safeguard the interests of the public and maintain the integrity of the financial sector.’

Advice for aspiring banking professionals

What guidance does Chohan offer to aspiring professionals looking to climb the ranks in the banking industry?

‘Ethical conduct, integrity, and contributing to the growth and development of South Africa are key pillars of success in financial services,’ he says. ‘I encourage aspiring future leaders to venture beyond their comfort zones, engage with diverse communities, and seek to make a meaningful difference in the lives of those less fortunate.’

In an interconnected world, he adds, having a global perspective on financial markets, international regulations, and emerging markets provides a competitive edge. ‘Customer satisfaction and loyalty are paramount, and their needs must be prioritised. Understanding financial markets, economic trends, and investment strategies enables informed decision-making, while prioritising customer needs through personalised services, quick issue resolution, and seamless digital experiences are key to maintaining a competitive edge in the face of setbacks and market fluctuations.

‘Leadership skills are essential for guiding teams through change, inspiring collaboration, and driving the organisation’s strategic vision,’ Chohan adds. ‘Effective communication with customers, colleagues, and stakeholders is critical for building trust and positive, enduring relationships. It’s about having a holistic approach that combines technical knowledge, customer-centricity, adaptability and strategic thinking. In my mind, that will ensure a prosperous future for both individuals and the banking industry as a whole.’

Author Monique Verduyn | Photographer Racheal View