Salaam Somali Bank
From Wikipedia, the free encyclopedia
 | |
| Salaam Bank | |
| Company type | Commercial bank |
| Islamic banking services provider | |
| Industry | Banking, finance |
| Founded | 2009 |
| Headquarters | , |
| Products | Financial services |
| Services | Retail Financial Services mobile banking Card Services Islamic Banking |
| Website | www |
Salaam Somali Bank, often abbreviated to SSB, is a Somali commercial bank. It is headquartered in Mogadishu, Somalia. SSB is one of the largest privately owned banks in the country.[1]
It was founded in 2009 and was the first Somalia bank to introduce new banking services to the country, such as SWIFT.
Salaam Somali Bank was established in October 2009.[2] It was the first bank to operate in Somalia since 1991, and was founded to provide trusted banking services to Somali businesses and communities, as well as reconstruct the country's banking system to facilitate economic development and growth.[3]
Salaam Somali Bank herein SSB, is a fully fledged Islamic bank which targets both consumers and businesses. The bank offers personal banking, commercial banking, and non-profit banking.[3] Additionally, the bank offers online banking, which was first introduced in the country in 2010 via its DEEQTOON service. The digital platform was created using Hormuud Telecom's technology to allow for mobile banking to be available for the first time in Somalia history. Mobile deposits, withdrawals, bank transfers and balance checks all became available services in the country.[2] Its DEEQTOON service received an update a year later in 2011, which allowed for accounts to transfer money and make digital purchases. SWIFT was introduced shortly afterwards, which allowed for quick and secure international transfers.[4] It also offers mobile banking and debit cards.[5] Hormuud Salaam Foundation was launched in 2009, the only bank at the time in Somalia to have an independent charitable arm.[2]
Salaam Somali Bank launched its monthly micro-finance programme in 2011. The programme is completely free, and by 2021 the program supported 6,306 whereby 59% men and 41% women with $7.5 million. It has been rolled out across Salaam Somali Bank's premises across the country in peri-rural and urban areas.
In 2014, the institution also began providing automatic teller machine (ATM) services in Mogadishu.[6][7] At their launch the devices were billed as the first of their kind in Somalia.[8][9]
The Somali banking sector has experienced exponential growth in the last decade, which has led to 13 licensed commercial banks in the country, including SSB. Collectively they have US$1,462.5 million in total assets.[10]
Salaam Somali Bank's financing arm has been active in rebuilding Somalia through strategic infrastructure investments. It was the sole financier of Daaru Salaam City, a green, luxury neighbourhood in Mogadishu. The project consists of 2000 homes, with the capacity of housing 12,000 people. The city boasts a complete set of amenities: ease of accessibility, a local market, health centres and schools.
In 2023, SSB launched a livestock insurance initiative to support pastoralists through the drought. Working in partnership with The World Bank and ZEP-RE, the insurance is part of a wider programme to decrease pastoralists’ reliance on aid and improve access to financial services. This includes promoting savings accounts and a 90% subsidised livestock insurance, which will assist pastoralists with forage when there is no grass to graze.[11]
Leadership and Governance
SSB is led by its board of directors and the managing director, Shuayb Haji Nur Mohamed.[12]
Operations
Salaam Somali Bank opened its first branch in Hamarweyne and Bakaaro and later opened other branches in Mogadishu.[13] It has 50 branches across the country of Somalia, with 20 branches in the country's capital.[14] SSB offers fully Shariah compliant trade and investment finance, from a micro to corporate level. Its trade finance focuses on fixed income investments, commodities, and equities.[15]
Salaam Somali Bank provides financial services to small, medium-sized and large businesses, as well as NGOs. It has more from sole proprietors through to incorporated companies.[16]
Services
Salaam Somali Bank's personal banking services include current accounts (personal and business), as well as savings accounts (Dalmar savings accounts for the diaspora, Hajj-Umra account, and students savings account).[17]
A payroll system allows for electronic payments service for employees, vendors and any Somali financial institution, that allows users to make daily/weekly/ monthly payments, with enhanced security. Customers can move funds in U.S. dollars; manage payments; and get remittance notifications by SMS and email to recipients.[14] Its Islamic Financing products facilitates Mudharabah, Murabahah and Musharakah.
The institution's commercial banking services include business current accounts, Bank Guarantees and Letters of Credit.[18]
The bank also offers trade finance, which is the largest of the bank's wholesale revenues and takes place through fixed-income investments, commodities, and equities. The bank utilises SWIFT for its international transfers, allowing for the flow of money in and out of Somalia. Its non-profit banking services include a Trust Account for non-governmental organizations, associations, societies and trusts.[19]
The bank also launched a microfinance product (Kalkaal) for small businesses and professionals.[20] Additionally, it offers anti-money laundering protection.[3]
SSB offers a range of Islamic financing options to personal and business customers. This is including equity-based finance services, Musharakah and Mudarabah, asset-based finance services, Murabaha and Istisna, as well as Ijaarah (leasing) and Qardul Hassan (free loan-based finance).[21]