scholarly journals Sharīʿah-compliance ratings of the Islamic financial services industry: a quantitative approach

2018 ◽  
Vol 10 (2) ◽  
pp. 162-184 ◽  
Author(s):  
Muhammad Hanif
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Banking Sector ◽  
Policy Formulation ◽  
Leadership Role ◽  
Rating System ◽  
Financial Services Industry ◽  
Special Focus ◽  
Content Type ◽  
Services Industry

Purpose This study aims to develop a Sharīʿah-compliance rating mechanism for the Islamic financial services industry (IFSI), with a special focus on banking. The banking sector is taken as the area of focus due to its leadership role in the volume of global Sharīʿah-compliant assets. Design/methodology/approach The objectives of the Islamic financial system (IFS) are selected as the basis for ratings. A range of performance indicators (leading to achievement of the objectives) is grouped into four broader categories and used in the study to allocate scores with a sum total of 100. Special considerations – including the amount of resources required in performing an activity, suitability of prevailing business conditions, the degree of compulsion/discretion in performing a task and linkage with the essence of the IFS – were taken into account in the allocation of scores. Findings This study groups multiple performance measures into four categories, including portfolio construction (deposits mechanism, participatory and asset-based modes of financing), access to finance (service to the less-privileged and sector screening), reputation (disclosures and stakeholders’ survey) and Sharīʿah governance (Sharīʿah supervision and controls, charitable operations, human resources, product development and organization). The Portfolio, Audit, Reputation and System (PARS) rating system is then developed. Practical implications A Sharīʿah-compliance rating system is helpful in measuring the progress towards goal achievement of the IFS and in gaining stakeholders’ trust. It is also important for Sharīʿah boards and regulators in policy formulation, for management in addressing weaknesses and taking corrective measures and potentially for standard-setting bodies. Originality/value This study presents a comprehensive quantitative Sharīʿah-compliance rating mechanism, taking into consideration the objectives of the IFS – equitable distribution of wealth and financial stability, in addition to Sharīʿah-compliance in operations. Development of Sharīʿah-compliance quality ratings for Islamic banking is essential to gain customers’ trust; the suggested methodology is thus a contribution to the literature on Islamic finance.

Artificial Intelligence and Personalized Banking

2022 ◽  
pp. 74-87
Author(s):  
Sunanda Vincent Jaiwant
Keyword(s):  
Artificial Intelligence ◽  
Customer Service ◽  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Human Intelligence ◽  
Financial Services Industry ◽  
Customer Journey ◽  
Services Industry ◽  
Applications Of Ai

AI has begun making its presence felt in every industry and now across the financial services industry as well. This chapter examines and presents the use of AI in banks for better customer service giving them a personalized experience. This chapter explains how banks are getting future-ready for their financial services by means of AI and are delivering financial offerings seamlessly. This research primarily focuses on the concept of AI in the field of banking, how AI has revolutionized personalized banking and made banking operations more efficient and successful. AI innovations are an integral part of Industry 5.0 which aims at integrating automation and human intelligence. This chapter aims to study and describe the current applications of AI in the banking industry and its impact on the banking sector. The study also gives a description of the banks employing AI to facilitate an exceedingly personalized customer journey with the banks.

The effects of IFRS adoption and firm size on audit fees in financial institutions in Ghana

2019 ◽  
Vol 32 (3) ◽  
pp. 436-453
Author(s):  
William Coffie ◽  
Ibrahim Bedi
Keyword(s):  
Financial Institutions ◽  
Firm Size ◽  
Financial Services ◽  
Audit Fees ◽  
Financial Services Industry ◽  
Content Type ◽  
Listed Firms ◽  
Ifrs Adoption ◽  
Services Industry ◽  
The Cost

Purpose This study aims to investigate the effects of international financial reporting standards (IFRS) adoption and firm size on auditors’ fees determination in the Ghanaian financial industry. Design/methodology/approach The authors use the annual report of 52 listed and non-listed firms spanning from 2003 to 2014. Guided by the hypotheses, the authors conditioned audit fees on IFRS adoption and firm size and execute robust fixed effects panel regression. Findings The results show that IFRS adoption has a positive coefficient with audit fees suggesting that the adoption of IFRS, indeed, increases the audit fees paid by banks and insurance firms, as well as the industry as a whole. The results are consistent with the idea that IFRS adoption increases auditor efforts with respect to time and complex nature of some aspect of the standards. Again, as expected, the coefficient of size is positively and significantly related to audit fees. This indicates that the size of the auditee plays a vital role in determining audit fees. Research limitations/implications The study is limited by industry (i.e. the financial services industry) and geography (i.e. Ghana). The authors propose further research that will widely consider other sectors and countries to improve the current scanty literature in this area. Besides, theoretically, the study is limited to the lending credibility theory and feels compelled to reiterate the importance of considering alternative theoretical perspective(s) in future research. Practical implications This study is significant to practitioners as it demonstrates the importance of the determinants of the auditors’ fees. It helps auditors to apply the relevant charging formula when determining audit fees, while it helps managers to improve upon the quality of reporting to control audit bill and forecasting their audit expenditure. Originality/value The results of the study extend the literature on the cost side of IFRS adoption by investigating the financial services industry and non-listed firms in a new context, i.e. a developing country where this research is uncharted. The existing studies based their analysis on either cross-section or pooled analysis and shorter post-adoption period (Cameran and Perotti, 2014). However, using an extended post-adoption period data, the authors base the study on analytical panel model, which directly examine the cost side of IFRS adoption with size as joint key explanatory variables with emphasis on financial institutions and external auditors.

Prospects of an online dispute resolution framework for Islamic Banks in Malaysia

2017 ◽  
Vol 25 (1) ◽  
pp. 39-55 ◽  
Author(s):  
Umar A. Oseni ◽  
Sodiq O. Omoola
Keyword(s):  
Dispute Resolution ◽  
Financial Services ◽  
Internet Banking ◽  
Internet Survey ◽  
Islamic Banking ◽  
Financial Services Industry ◽  
Access To Justice ◽  
Content Type ◽  
Online Dispute Resolution ◽  
Services Industry

Purpose This study aims to examine the prospects of using an online dispute resolution (ODR) platform for resolving relevant Islamic banking disputes in the usual banker–customer relationship in Malaysia. It is argued that through proper regulation, such innovative dispute management mechanism would not only address some legal risks associated with banking disputes but could also prevent reputational risks in the Islamic financial services industry. Design/methodology/approach Based on an internet survey, responses were obtained from about 109 respondents in Malaysia. The data obtained were subjected to multivariate statistical analyses considering factors such as access to justice, attitude of stakeholders, resolving disputes, practical issues and understanding of ODR. Findings The results obtained showed that “access to justice”, “attitude of stakeholders” and “resolving disputes” are the most influencing factors affecting the intention to use ODR among stakeholders, particularly customers and bankers in the Islamic financial services industry in Malaysia. Practical implications This study provides a way in which the recently introduced Islamic Financial Services (Financial Ombudsman Scheme) Regulations 2015 can be better enhanced to cater for internet banking disputes which might require an ODR framework. Originality/value Though there have been numerous studies on the dispute resolution framework in the Islamic banking industry in Malaysia generally, the current study focuses on a less explored framework – ODR– a new framework for handling banking disputes.

The impact of entrepreneurial leadership on innovation management and its measurement validation

2017 ◽  
Vol 9 (1) ◽  
pp. 2-19 ◽  
Author(s):  
Avanti Fontana ◽  
Soebowo Musa
Keyword(s):  
Financial Services ◽  
Innovation Management ◽  
Innovation Performance ◽  
Financial Services Industry ◽  
Entrepreneurial Leadership ◽  
Content Type ◽  
Two Samples ◽  
Measurement Validation ◽  
Services Industry ◽  
The Impact

Purpose This paper aims to validate the measurement of entrepreneurial leadership (EL) in the context of innovation management and strategic entrepreneurship, and to examine the relationship between EL and the innovation process (IP). It proposes the measurement of EL and outlines the reason and the importance of EL in the IP. The study further examines whether the IP would have direct impact on innovation performance. Design/methodology/approach The paper opted for an explanatory and confirmatory study using a quantitative approach employing an online survey/questionnaire distributed to two groups of employees representing middle and senior management having mixed background such as finance, marketing, operations and management. The first group consists of 222 respondents spread across multiple industries, and the second group consists of 60 respondents mainly from the financial services industry to validate the measurement of the EL construct. Findings The paper provides empirical insights into the validation of EL measurement through two samples, and on the impact of EL in fostering all elements in the IP (i.e. idea generation, idea selection and development or idea conversion and idea diffusion). The paper also confirms some of the literature views on the difficulty of identifying a significant relationship between the IP and innovation performance. It suggests counterintuitively that the IP may not necessarily have a positive relationship with innovation performance. Research limitations/implications Most of the respondents were those from the financial services industry, which may have an impact on the overall model but less on the validation of the EL measurement. The research affirms the theoretical concept of the dimensions of EL and validates its measurement. The research also shows intriguing findings on the missing link between the IP and innovation performance. Therefore, researchers are encouraged to identify variables or factors that should link the influence of the IP on innovation performance so that the contribution of innovation management to competitiveness can be clearly identified. Practical implications The research validates the measurement of the EL construct, which could be used as a screening tool in measuring the EL capacity at all levels within an organization as part of its leadership development in fostering its IP. Originality/value This paper fulfills an identified need to have a validated measurement of EL and its relationship with the IP.

scholarly journals Analisis Yuridis Tujuan dan Kewenangan Otoritas Jasa Keuangan (OJK) dalam Lembaga Perbankan di Indonesia

PRANATA HUKUM ◽  
2018 ◽  
Vol 13 (2) ◽  
pp. 168-180 ◽  
Author(s):  
Yulia Hesti
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Financial Services Industry ◽  
Services Sector ◽  
Financial Services Sector ◽  
Regulation And Supervision ◽  
Consumer Rights ◽  
Integrated Regulation ◽  
Services Industry ◽  
Article 5

The industry of the financial services or banking sector is demanded to be constantly stable, that is healthy, transparent and well managed. Such banking conditions can build consumers to continue to actively engage in transactions. However, as time goes by the development of the financial services industry in Indonesia is increasing and the cross-sectoral problems of the financial services industry are increasingly in need of reform in the field of banking law, then the Financial Services Authority is formed as an institution that will replace Bank Indonesia in the supervision of banks and supervise institutions other finance. OJK in its formation has several objectives to carry out supervision, especially in the financial services sector. Pursuant to Article 4 of the OJK Law, OJK was formed with the aim that all activities within the financial services sector: (a) be organized regularly, fairly, transparently and accountably; (b) Able to realize a financial system that grows sustainably and stably; and (c) Able to protect the interests of consumers and society. Based on its authority, the OJK carries out the task of regulating and supervising the banking sector in accordance with its functions as stipulated in Article 5 of the OJK Law which functions to organize an integrated regulation and supervision system for all activities within the financial services sector. With the presence of OJK in supervision, banking and other financial institutions can create harmonious regulations so as to protect consumer rights.

Brand knowledge transfer via sponsorship in the financial services industry

2014 ◽  
Vol 28 (6) ◽  
pp. 452-459 ◽  
Author(s):  
Sujin Yang ◽  
Sejin Ha
Keyword(s):  
Knowledge Transfer ◽  
South Korea ◽  
Financial Services ◽  
Corporate Image ◽  
Brand Awareness ◽  
Financial Services Industry ◽  
Content Type ◽  
Brand Knowledge ◽  
Services Industry ◽  
Sales Agents

Purpose – The main aim of this study is to develop a framework of brand knowledge transfer through sponsorship for sponsors within an insurance industry in South Korea. To this end, this study explores: how pre-event brand knowledge and perceived sponsor–event fit contribute to post-event brand knowledge and if and how consumers’ attitudes toward insurance agents play a role as a moderator in the model. Brand knowledge is examined in terms of brand awareness and corporate image. Design/methodology/approach – Using a paper-and-pencil survey method, data were gathered from consumers (n = 330) who participated in a parenting education program in which an insurance company partnered with a baby food manufacturer in South Korea. Hypotheses were tested using structural equation modeling. Findings – The results confirm the occurrence of brand knowledge transfer for sponsors via sponsorship. Pre-event brand awareness and corporate image affect post-event brand awareness and corporate image, respectively, while perceived event–sponsor fit affects both attributes of post-event brand knowledge. Further, consumer attitude toward sales agents partially moderates brand knowledge transfer. Research limitations/implications – Because the data focused on a single segment of sponsorship events in the financial service industry in South Korea, the results must be carefully applied to other forms of sponsorship, industries and cultures. Practical implications – This study highlights the effectiveness of sponsorship in the financial services industry. By aligning sponsorship events with sponsors’ characteristics and managing their brand knowledge, companies can maximize brand knowledge transfer contributing to brand equity. Originality/value – This study identifies consumers’ pre-extant attitudes toward sales agents as a moderator that controls brand knowledge transfer, the pre-event and post-event corporate image relationship, specifically.

Exploring the determinants and consequences of salesperson market orientation behavior

2018 ◽  
Vol 28 (2) ◽  
pp. 170-195 ◽  
Author(s):  
Yen-Chun Chen ◽  
Adriana Amaya Rivas ◽  
Wann-Yih Wu
Keyword(s):  
Market Orientation ◽  
Financial Services ◽  
Sales Performance ◽  
Financial Services Industry ◽  
Orientation Behavior ◽  
Research Attention ◽  
Content Type ◽  
Adaptive Selling ◽  
Services Industry ◽  
Antecedents And Consequences

Purpose While the importance of salesperson market orientation behavior (SMOB) is widely acknowledged, as evidenced by the increasing research attention this concept is receiving, discussion of its antecedents and consequences in the literature remains limited. The purpose of this paper is to focus on the antecedents of SMOB and the underlying process through which it influences sales performance. Design/methodology/approach A causal model was developed to analyze the antecedents and consequences of SMOB. This proposed model and various hypotheses were tested using data obtained from a sample of 264 salespeople in the Taiwanese financial services industry. Findings The learning orientation and behavioral controls of salespeople positively influence SMOB. In addition, SMOB plays a critical role in improving two types of “working-smart” behaviors (i.e., sales planning and adaptive selling), thereby achieving better sales performance. Originality/value This report sheds light on the importance of SMOB in today’s personal sales environment and uncovers the underlying mechanisms through which SMOB contributes to sales performance. It also offers specific guidelines for the assessment and management of SMOB to enhance the performance of salespeople within the financial services industry.

Improving financial services data quality – a financial company practice

2015 ◽  
Vol 6 (2) ◽  
pp. 98-110
Author(s):  
Chuan Shi ◽  
Rajesh Jugulum ◽  
Harold Ian Joyce ◽  
Jagmet Singh ◽  
Bob Granese ◽  
...  
Keyword(s):  
Quality Improvement ◽  
Data Quality ◽  
Six Sigma ◽  
Financial Services ◽  
Financial Services Industry ◽  
Content Type ◽  
Critical Data ◽  
Services Industry ◽  
Data Elements ◽  
Financial Company

Purpose – This paper aims to propose a funnel methodology that selects business data elements for data quality improvement practices at a financial company. Data quality is crucial in post-crisis recovery of the financial services industry. This allows the bank to monitor its critical data assets and improve its business operation by Six Sigma engagement that benefits from the good quality of data. Design/methodology/approach – A funnel methodology is invented. It utilizes a rationalization matrix and statistical methods to identify critical data elements (CDEs) for data quality efforts from numerous candidates across business functions. The “Voice of the Customer” is achieved by including subject matter experts, whose knowledge and experience contribute to the entire process. Findings – The methodology eliminates redundancy and reduces the number of data elements to be monitored, so that attention becomes focused on the right elements. In addition, the methodology ensures that the conduct of the data quality assessment is framed within a context of the functional area’s business objectives. Originality/value – Measuring and improving data quality form a solid foundation of every Six Sigma engagement. When presented with large data elements, determining what to measure can be an arduous task. Having a proven systematic and valid process to reduce the CDE candidate pool becomes an operational necessity of paramount importance, and this justifies the value of the proposed methodology. Its implementation is described by a Basel II case study. The methodology is not restricted to financial services industry, and can be used readily in any other industry that requires data quality improvement.

Combined framing effects on attitudes and behavioral intentions toward mortgage advertisements

2020 ◽  
Vol 38 (4) ◽  
pp. 961-986
Author(s):  
David S. Dobson ◽  
Karolien Poels
Keyword(s):  
Decision Making ◽  
Financial Services ◽  
Behavioral Intentions ◽  
Message Framing ◽  
Framing Effects ◽  
Financial Services Industry ◽  
Mortgage Loans ◽  
Content Type ◽  
Positive Message ◽  
Services Industry

PurposeMortgage lenders often combine a variety of framing strategies when developing mortgage advertisements. To date, these frames have mostly been studied separately. This paper, however, studies the combined framing effects of message valence, specificity, and temporality on consumers' mortgage decision-making.Design/methodology/approachA mixed methods design was used. First, 13 unique print ads collected from a Canadian newspaper were analyzed for content. Second, a 2 × 2 × 2 scenario-based experiment with 400 undergraduate participants examined the framing effects of valence, specificity and temporality on attitudes toward the mortgage advertising message, the product advertised, and the brand, as well as on consumers' behavioral intentions toward the advertised mortgage product.FindingsThe content analysis suggests that combined framing does exist in print ads. A positive message with a fixed term and a specific interest rate were the most commonly used frames. The experiment revealed that, for behavioral intentions, the main effect of the message temporality was significant. The effects of advertising a long-term mortgage on behavioral intentions were more favorable than those of advertising a short-term mortgage.Practical implicationsThis research provides a combined framing model for designing advertising strategies for the financial services industry to market complex financial products, such as mortgage loans to consumers. This is relevant to lenders when designing a persuasive package or ads for potential customers.Originality/valueThis study is the first of its kind to investigate the effects of combinations of message frames on consumers' mortgage decision-making, while also advancing the understanding of message framing theory for the financial services industry.

Enhancing Islamic Banking and Finance in Southeast Asia Through the Application of Artificial Intelligence

2020 ◽  
pp. 36-53
Author(s):  
Nor Razinah Mohd. Zain ◽  
Rusni Hassan ◽  
Azman Ismail
Keyword(s):  
Artificial Intelligence ◽  
Southeast Asia ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Islamic Banking ◽  
Financial Services Industry ◽  
Positive Trend ◽  
Banking And Finance ◽  
Services Industry

The disruption of innovations in the banking sector continues to indicate a positive trend among bankers and customers. The innovations of technology that stand with speediness and fast track transaction effectively support the spread in using banking system without barriers. Recently, the financial services industry continues to be surprised by the latest technology's innovation that is known as artificial intelligence. By looking into the ecosystem for the future sustainability of Islamic banking and finance in Southeast Asia, Islamic financial services may learn and adopt several best practices of A.I. from global banking practices. With a focus on the Islamic financial services industry in Southeast Asia, an exploration on the readiness of such industry and advantages of artificial intelligence are made. This research depends on the qualitative investigation from documentary materials. The leadership of Islamic banks shows their readiness in accepting artificial intelligence.

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