Find out How a leading Islamic Bank in Kuwait Grew its Lending Portfolio with Qarar

May 21, 2017

Client Requirement

A leading Islamic Bank in Kuwait, had strong aspirations to grow its historically low risk but profitable lending portfolio. This Bank previously had a prudent approach in both acquisition and portfolio growth. Looking ahead as part of its new growth strategy, the Bank was eyeing to grow the portfolio significantly within its defined risk appetite. With this in mind, the client wished to conduct an assessment of its collections and recovery function in preparation for the expected increase in the portfolio size and the probable increased flow of accounts into collections.

In addition, the client also wanted to identify how well its collection function was performing compared to the industry and how this function benchmarked against regional and global standards for specific collections performance metrics.

The Qarar Approach

Qarar has developed a comprehensive diagnostic solution that addresses the client’s concern in the form of a HealthCheck. The HealthCheck, as the word describes, is a process to assess the health of the particular function that tries to understand if that function is performing as expected or if there are potential areas of improvement. The HealthCheck can be conducted on any function and follows the Qarar defined approach which looks at four specific areas: the client’s Operations, Policy, Information and Technology (OPIT).  

OPIT involves assessing the client’s:


  • Operations  which covers all the operational functional aspects
  • Policy which covers the lending policies or strategies
  • Information which covers the comprehensiveness and use of management information in driving business decisions
  • Technology which covers the use of technology or software related aspects to drive efficiencies and automation


Qarar with specific domain expertise and industry experience related to collections were engaged in assisting the client with the Collections HealthCheck. Our consultants worked through the four areas by meeting with stakeholders within the Bank, who were accountable for specific functions or tasks in order to fully understand how specific activities were being managed and conducted. Qarar then made an assessment of the effectiveness of these tasks conducted within each OPIT component, including stating which activities were undertaken correctly. All areas for improvement were documented, justified and presented back to the client in a comprehensive report that also included Qarar’s assessment of the priority of the recommendation based on the consultants view on the benefits and ease/cost of implementation.

Client Benefits

The client gained significant value from the Collections HealthCheck.  The review gave the bank the assurance that it was looking for in relation to proceeding with their growth aspirations.  The HealthCheck specifically provided the following benefits to the client:

  • Improved efficiency within the current collections activities with an expected reduction in cost per $ collected
  • A detailed and comprehensive report that identified 27 specific recommendations across Operations, Process, Information & Technology
  • A breakdown of each  recommendation by the complexity, impact on collections and the overall importance on the collections function
  • A roadmap with the specific recommendations that are set out in order of execution, whilst balancing implementation complexity and the impact on collections
  • A view on the client’s specific collection KPIs benchmarked against the industry averages