Islamic marketing ethics for Islamic financial institutions

2019 ◽  
Vol 36 (1) ◽  
pp. 1-11 ◽  
Author(s):  
Ameenullah Aman
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Well Being ◽  
Marketing Mix ◽  
Research Literature ◽  
Marketing Ethics ◽  
Product Price ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
Islamic Values

Purpose To wipe out the criticism of being a replica of conventional financial institution, Islamic financial institutions (IFIs) need to comply with Islamic principles not only on financial side but also while branding and marketing their products and services. This will bring the coherence between their overall market image and core business activities. This paper aims to discuss in detail the Islamic marketing traits relevant to the IFIs for positioning and offering their products. Design/methodology/approach This study follows the research design based on reviewing existing sources of Qura’an and Hadith, the secondary research literature on this novel topic and substantial intellectual discourse with the field experts. Findings It is criticized that IFIs lack the spirit of Islamic values for marketing and branding a commercial business entity. Therefore, this paper outline the differences between Islamic and conventional marketing. Also, it contributes to explain the traits of Islamic marketing mix relevant to the IFIs based on Islamic established principles. Research limitations/implications This study gives valuable practical guidelines for the marketing policymakers of Islamic financial institutions. Islamic marketing mix; product, price, place and promotion, related strategies can be designed and branded keeping the true spirit of Islamic marketing values intact. Practical implications This study is practically important for Islamic financial intuitions to sustain their “Islamic” image by making sure of Islamic principles in their product development, pricing, promotions and distribution. Social implications The socioeconomic system is the brand of Islamic economics and finance. IFIs being the stakeholders of this brand can contribute to the well-being of the society by enhancing their acceptability with the help of divine image and operations. Originality/value Literature on practical Islamic marketing approach in particular to the IFIs is very limited. This study gives comprehensive findings on all the major aspects of marketing based on Islamic values for Islamic financial institutions.

The role of Islamic social finance during Covid-19 pandemic in Indonesia’s economic recovery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ascarya Ascarya
Keyword(s):  
Financial Institutions ◽  
Quantitative Methods ◽  
Qualitative Content Analysis ◽  
Well Being ◽  
Safety Net ◽  
Economic Recovery ◽  
Economic Surplus ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
The Government

Purpose This study aims to propose Islamic solutions to the Covid-19 health and economic crises, specifically using Islamic social finance (ISF) instruments, including zakat, infaq and waqf. Design/methodology/approach This study applies the qualitative content analysis method, guided by a model of composite approaches of poverty alleviation in Islam, integrated Islamic commercial and social finance (IICSF) and crisis management of Umar bin Khattab, to construct various programs and/or policy actions toward economic recovery in Indonesia. Findings The results show that ISF with its instruments, especially zakat, infaq and waqf could help the government and the economy to recover from the crisis. The proposed solutions include: save lives, including medical assistance using zakat-infaq and health-care waqf using waqf; save households, by creating a social safety net and graduation program using zakat-infaq; save businesses, especially micro-small enterprises (MSEs), through financial and business assistance (especially digital marketing) leveraging zakat-infaq-waqf and save financial institutions, especially micro-small financial institutions, by the development of cash waqf and the adoption of fintech and IICSF, especially in Islamic financial institutions targeting MSEs. Research limitations/implications This study is exploratory in nature, which needs further investigations using more sophisticated qualitative and/or quantitative methods. Practical implications If the above programs using ISF instruments are implemented, the economic surplus would be re-established and the acceleration of economic recovery can be realized. Social implications The successful adoption of ISF could at the same time reduce poverty, accelerate MSEs development and improve equitable well-being. Originality/value The Covid-19 pandemic has caused health, economic and social problems, which must be solved holistically, including ISF within IICSF.

scholarly journals ANALISIS FAKTOR-FAKTOR YANG DIPERTIMBANGKAN KONSUMEN DALAM MENABUNG DI LEMBAGA KEUANGAN SYARIAH

El Dinar ◽  
2014 ◽  
Vol 1 (01) ◽  
Author(s):  
Nihayatu Aslamatis Solekah
Keyword(s):  
Environmental Factors ◽  
Financial Institutions ◽  
Financial Institution ◽  
Sampling Technique ◽  
Marketing Mix ◽  
Analysis Technique ◽  
Islamic Financial Institutions ◽  
Rotation Factor ◽  
Place Promotion ◽  
Main Factors

<p>This paper aims to analyze the factors that considered by customer in making a decision to deposit their money at the Islamic Financial Institutions as well as to analyze the main factors considered by customers in making a decision to deposit in to Islamic Financial Institutions. The research method used is factor analysis. The analysis technique used is through the following stages: Description of Data, Test of variables Interdependence, extraction factor (early statistics), factor before the rotation, Rotation Factor and Validity Test and reliability of the model factor. The samples in this research are 100 respondents from 7 BMT in Malang city. Sampling of customers of Islamic financial institutions in this research is using a purposive sampling technique, which is sampling of customer of Islamic financial institution that intentional without consider the level in the population. This technique is done due to the member of the population is considered homogeneous and already well-known. The results of this study showed that environmental factors that consist of cultural, social class, personal, and family and marketing mix factors that consist of product, place, promotion, and price are the factors that considered by customers when making a decision to deposit their money in to Sharia Financial Institutions. The main factors to be considered are the marketing mix, and environmental factors.</p><br />

How perceived information transparency and psychological attitude impact on the financial well-being: mediating role of financial self-efficacy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Zia-ur-Rehman ◽  
Khalid Latif ◽  
Muhammad Mohsin ◽  
Zahid Hussain ◽  
Sajjad Ahmad Baig ◽  
...  
Keyword(s):  
Financial Institutions ◽  
Self Efficacy ◽  
Well Being ◽  
The Body ◽  
Main Concern ◽  
Productivity Level ◽  
Content Type ◽  
Information Transparency ◽  
Psychological Attitude

PurposeThe basic intention of this research is to investigate the role of information transparency of financial institutions and psychological attitude of the individuals toward their attention to saving and borrowing. This study also tries to know how an individual's psychological factor affects a person's attitude to motivate them to save or borrow and contribute to well-being by giving them confidence that they can face financial challenges. So, the main concern of this study is to explore different factors that ultimately contribute to the financial well-being (FWB) of individual.Design/methodology/approachA survey was conducted by using a well-structured questionnaire to collect data and test the developed hypotheses by using SmartPLS. Data were collected from 120 customers of seven different commercial banks in Pakistan.FindingsThe findings of this study show that perceived information transparency positively affects FWB. It is also because transparent shared information creates positive change in individuals' perceived self-efficacy and leads to FWB. Furthermore, an individual's psychological attitude toward borrowing and saving did not contribute to the FWB of people who belong to Pakistan.Research limitations/implicationsThe research area is limited to one city of Pakistan and analysis is done with small numbers of sample, it can be increased and more areas can be explored.Practical implicationsThis research provides significant implications for people and economists by providing awareness about the antecedents of FWB. The policymakers or managers who work in financial institutions should provide more transparent information and create less risky opportunities to improve the individual's well-being. If person, manager and financial institution can properly utilize the information of this study, then they are able to improve their FWB. By providing more transparent services and favorable experience with your dealings, it could help to obtain and retain more loyal internal (employees) and external customers. The loyal customers and sincere employees can increase the productivity level of organization. The more productive organizations in countries means better society and progress in the economy.Originality/valueThis research contributes to the body of knowledge that how perceived information transparency and psychological attitude of borrowing create improvement and upward changes in the FWB of a person.

Issues and challenges of IFRS 9 in Malaysian Islamic financial institutions: recognition criteria perspective

2021 ◽  
Vol 12 (2) ◽  
pp. 239-257
Author(s):  
Marziana Madah Marzuki ◽  
Abdul Rahim Abdul Rahman ◽  
Ainulashikin Marzuki ◽  
Nathasa Mazna Ramli ◽  
Wan Amalina Wan Abdullah
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Business Models ◽  
Fair Value ◽  
Financial Instruments ◽  
Structured Interviews ◽  
Content Type ◽  
Reporting Framework ◽  
Islamic Financial Institutions ◽  
Ifrs 9

Purpose The purpose of this paper is to investigate the effects and challenges of the new amendment of International Financial Reporting Standards (IFRS) 9 in Malaysia from the perspectives of regulators, auditors, accountants and academicians in Malaysian Islamic financial institutions. For the purpose of this study, this paper focuses on the recognition criteria perspective of the standard, which provides a basic understanding of the financial reporting framework. Design/methodology/approach Using 10 series of semi-structured interviews undertaken with key individuals in regulatory bodies, audit companies, full-fledged Malaysian Islamic Banks and Malaysian higher learning institutions. Findings The findings revealed that IFRS 9 strengthens International Accounting Standards 39 in terms of relevance and reliability, recognition of financial instruments and identification of business models. Nevertheless, Islamic financial institutions face challenges in terms of a faithful representation of fair value, substance over form, identification of financial instruments before recognition criteria and the extent of the role of risk management in reducing manipulation in identifying business models. Research limitations/implications This study provides implications to regulators and standard setters in Malaysia to enhance the quality of financial reporting framework and practices in Islamic financial institutions in this country using IFRS 9. Practical implications Practically, the findings of this study can be used by the regulators to resolve the issues that arise in adopting IFRS 9 among Islamic financial institutions to further enhance financial reporting quality. Originality/value The findings of this study are very important to ensure that the adoption of IFRS among Islamic financial institutions are in line with Sharīʿah principles. To date, no studies have been done on the challenges of adopting IFRS 9 among Islamic financial institutions in Malaysia.

Marketing dispossession

2017 ◽  
Vol 35 (1) ◽  
pp. 112-127 ◽  
Author(s):  
Paul Sergius Koku ◽  
Hannah Emma Acquaye
Keyword(s):  
Mental Health ◽  
Financial Institutions ◽  
Mental State ◽  
Well Being ◽  
Small Sample ◽  
Real Property ◽  
Content Type ◽  
Alternative Approach ◽  
Hard Times

Purpose The purpose of this paper is to examine the mental state and the disposition of those who have fallen on hard times during the recent financial crisis and have had their homes foreclosed on or their automobiles repossessed. It also proposes an alternative process for dispossessing individuals that preserves the mental health of such individuals and the banks’ reputation. Design/methodology/approach This study uses the hermeneutics approach to analyze the predicament of those whose homes have been foreclosed on or whose properties have been repossessed by financial institutions to better understand their predicament. Findings Those whose homes have been foreclosed on or whose properties have been repossessed by financial institutions are traumatized. They feel victimized, bitter, helpless and hopeless and have poor mental state. The study draws on theories in counseling psychology to propose an alternative approach to making loans that take long time to be repaid (long-term loans), and for repossessing personal properties such as automobiles and for foreclosing on real property (homes). Research limitations/implications As a qualitative study based on a small sample, the findings of the study are limited to only those who have been studied. A further study that leads to a generalized result will be useful. Practical implications The study develops a practical framework that could be useful to financial institutions in making long-term loans and to foreclose on delinquent loans (i.e. to dispossess individuals). Social implications The proposed strategy, if implemented, could have a significant positive impact on the mental well-being of those who have fallen on financial hard times. Originality/value To the best of the knowledge, this is the first marketing paper that has explored the mental health of those who have defaulted on loans, and has proposed an alternative approach to making long-term loans that not only preserves the mental health of banks’ customers, but also protects the reputation and market share of banks.

Corporate governance and the social performance: investigation on Tunisian financial institutions

2018 ◽  
Vol 60 (6) ◽  
pp. 1412-1431
Author(s):  
Nejia Nekaa ◽  
Sami Boudabbous
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Financial Institution ◽  
Stock Exchange ◽  
Social Performance ◽  
Financial Sector ◽  
Content Type ◽  
The Social ◽  
Questionnaire Method ◽  
The Impact

Purpose The purpose of this study is to show the specificities of the corporate governance of Tunisian financial institutions and the impact of the internal mechanisms of corporate governance of these institutions on their social performance. It is therefore interesting to establish the existing relationship between these mechanisms of corporate governance and the performance of a financial firm. Design/methodology/approach This study aims to study the financial sector, generally characterized by its opacity, its regulation, its evolution and its obscurity. Therefore, a study based on the questionnaire method was recommended. The questionnaire is intended for managers. Therefore, the authors interviewed 138 managers of Tunisian financial institutions dispersed between agencies and headquarters in different regions (Gabes, Tozeur, Gafsa, Sfax, Sousse and Tunisia). Findings As a result, an impact on performance was observed according to the empirical study. Therefore, the authors can conclude an essential role of internal mechanisms for improving the social performance of a financial institution. The empirical findings in this paper lead to important conclusions. Indeed, the variables measuring the governance mechanisms have divergent effects on the social performance of the financial institutions subject to the sample. For the variables board of directors, confidence, culture, auditing, they have a positive effect. While, the incentive remuneration effect negatively the social performance. Originality/value This study will be based essentially on the financial sector in Tunisia: the credit institutions (22 banks), the establishments of leasing (eight companies of leasing), two factoring companies and two banks of cases which are listed on the Stock Exchange of Tunis (BVMT).

scholarly journals QARDHUL HASAN DALAM PERSFEKTIF HUKUM ISLAM PADA BAITUL MAAL WA TAMWIL (BMT) DAN IMPLEMENTASINYA

2019 ◽  
Vol 1 (1) ◽  
pp. 44-58
Author(s):  
Muhamad Bisri Mustofa ◽  
Mifta Khatul Khoir
Keyword(s):  
Financial Institutions ◽  
Islamic Law ◽  
Financial Institution ◽  
Social Institution ◽  
Small Communities ◽  
Economic Law ◽  
Potential Source ◽  
Islamic Financial Institutions

Abstract In the implementation of Islamic Financial Institutions such as the Baitul Maal wa Tamwil (BMT) there are various ways of collecting funds and channeling funds. Funds are collected through wadi'ah deposits and deposits. While the distribution of funds is done by murabahah, mudharabah, musyarakah, rahn (pawn), ijarah, ijarah multijasa and qardhul hasan financing. Qardhul Hasan's financing is the orientation of the function of the Islamic Financial Institution (Baitul Maal Wa Tamwil) as a social institution. Qardhul hasan is a soft loan given on the basis of mere social obligations. In this case the borrower is not required to return anything except the amount borrowed. In Qardhul Hasan financing there are pillars and conditions, namely the perpetrator of the contract consisting of muqtaridh (borrower), muqridh (lender), qardh (fund), shighat ijab and qabul willingness for both parties and funds used for something useful and lawful. Qardhul Hasan is an activity to achieve a predetermined goal or target by the relevant Islamic financial institutions. The mechanism for implementing Qardhul Hasan is solely aimed at providing assistance to meet the needs of small communities. Thus it can be seen that the form of borrowing through Qardhul Hasan is in accordance with the principles of sharia economic law, the potential source of Qardhul Hasan's funding is quite large if it is utilized and managed optimally and its implementation is very useful for the community. Keywords: Qardhul Hasan, Islamic Law, BMT

scholarly journals A Research on Stress Testing Approach Towards Evaluating Credit Risk of a Financial Institution

2021 ◽  
Author(s):  
S M Nazmuz Sakib
Keyword(s):  
Financial Institutions ◽  
Stress Testing ◽  
Financial Institution ◽  
Well Being ◽  
Status Quo ◽  
Science Theory ◽  
The Future ◽  
Financial Framework ◽  
Economic Well Being ◽  
Credit Institutions

The stress testing methodology should be implemented and applied to the entity's overall financial system at least annually, and if the organization operates in a volatile economy, it should be performed at least twice a year. Finally, managers should include regular training and development sessions for relevant employees of their organization to be fully informed and more informed and informed, considering the evolving science, theory and practicality of a discrete range of stress testing mechanisms that can be appropriately applied to overall financial framework and system of multiple financial institutions and banks. In addition, stress testing is essentially a methodology that collects and analyzes certain future macro-prudential and micro-prudential economic drivers and indicators, the primary purpose of which is to assess the future financial and economic well-being, level of growth and status quo of a financial institution, bank, organization, credit institution or economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. with the primary intention of assessing the future financial and economic well-being, level of growth and status quo of a group of financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically targeted and incorporated into a paper that substantially and broadly discussed and summarized the importance of the feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. with the primary intention of assessing the future financial and economic well-being, level of growth and status quo of a group of financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. the level of growth and status quo of the financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. the level of growth and status quo of the financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries.

scholarly journals Towards New Sharia Governance for Islamic Financial Institutions

2021 ◽  
Vol 18 (1) ◽  
pp. 39-58
Author(s):  
Abdulazeem Abozaid
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Institution ◽  
Islamic Banking ◽  
Banking And Finance ◽  
Finance Industry ◽  
Regulatory Authorities ◽  
Governance Model ◽  
Islamic Financial Institutions ◽  
Shariah Governance

Since its inception a few decades ago, the industry of Islamic banking and finance has been regulating itself in terms of Sharia governance. Although some regulatory authorities from within the industry, such as Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB), the Islamic banking and finance industry remains to a great extent self-regulated. This is because none of the resolutions or the regulatory authorities' standards are binding on the Islamic financial institution except when the institution itself willingly chooses to bind itself by them. Few countries have enforced some Sharia-governance-related regulations on their Islamic banks. However, in most cases, these regulations do not go beyond the requirement to formulate some Sharia controlling bodies, which are practically left to the same operating banks. Furthermore, some of the few existing regulatory authorities' standards and resolutions are conflicted with other resolutions issued by Fiqh academies. The paper addresses those issues by highlighting the shortcomings and then proposing the necessary reforms to help reach effective Shariah governance that would protect the industry from within and help it achieve its goals. The paper concludes by proposing a Shariah governance model that should overcome the challenges addressed in the study.Pada awal berdiri, Lembaga Keuangan Syariah merupakan lembaga keuangan yang menerapkan Hukum Syariah secara mandiri dalam sistem operasionalnya. Ia tidak tunduk pada peraturan lembaga keuangan konvensional, sehingga dapat terus berkomiten dalam menerapkan Hukum Syariah secara benar. Selanjutnya, muncullah beberapa otoritas peraturan yang berasal dari pengembangan Lembaga Keuangan Syariah. Diantaranya adalah Islamic Financial Services Board (IFSB) dan Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Hal ini tidak menyimpang dari kerangka peraturan Hukum Syariah, sebab standar peraturan dan keputusan yang dikeluarkan ditujukan khusus untuk Lembaga Keuangan Syariah saja. Beberapa Negara telah menerapkan peraturan tata kelola Hukum Syariah pada Bank Syariah mereka. Namun dalam banyak kasus, peraturan yang diterapkan tidak mampu mengontrol Lembaga Keuangan Syariah tersebut secara penuh. Sehingga, secara praktis proses pengawasan diserahkan kepada lembaga keuangan yang beroperasi. Akan tetapi, beberapa standar dan keputusan yang dikeluarkan oleh sebagian pemangku kebijakan bertentangan dengan keputusan yang dikeluarkan oleh beberapa akademi Fiqh. Artikel ini ditulis untuk menyoroti permasalahan yang timbul pada tata kelola Lembaga Keuangan Syariah, khususnya kekurangan yang tampak pada sistem tata kelola. Kemudian, penulis akan mengajukan usulan tentang efektifitas tata kelola Lembaga Keuangan Syariah yang bebas dari permasalahan.

scholarly journals PRINSIP DAN KRITERIA PERIKLANAN DARI PERSPEKTIF ISLAM

2012 ◽  
Vol 1 (1) ◽  
Author(s):  
Teuku Meldi Kesuma
Keyword(s):  
Content Analysis ◽  
Literature Review ◽  
Financial Institutions ◽  
Islamic Perspective ◽  
Islamic Financial Institutions ◽  
Islamic Values

Advertising in marketing Islamic products must be believed and understood as an important part of marketing based on Islam which should not be separated. This paper examines the principles and criteria of advertising from the perspective of Islam. It is caused by the increase of companies and institutions which are based on Islamic values such as Islamic financial institutions that promote its products the consumers. The important issues discussed in this paper is how the reality of concepts, principles, and criteria of Islamic advertising? Therefore this paper is developing an advertising concept from the perspective of Islam and to know for sure whether the principles and criteria that should exist in advertising Islam. The methodology applied in this paper is through a literature review by using content analysis. Hopefully, this study could develop an Islamic perspective advertisement concept in terms of principles and criteria. ======================================================================================================== Periklanan dalam memasarkan produk-produk Islam harus diyakini dan di pahami merupakan bahagian penting dalam pemasaran yang berdasarkan Islam yang tidak boleh dipisahkan. Tulisan ini mengkaji prinsip-prinsip dan kriteria periklanan dalam perspektif Islam. Hal ini disebabkan semakin ramai dan tingginya pertumbuhan perusahaan dan institusi yang berlandaskan nilai-nilai Islam seperti institusi keuangan Islam yang mempromosikan produk dan perkhidmatannya kepada orang ramai. Persoalan penting yang dibahas dalam kertas kerja ini adalah bagaimanakah bentuk konsep, prinsip dan kriteria periklanan Islam yang sebenarnya? Oleh karena itu tujuan kertas kerja ini adalah untuk membangun satu konsep periklanan dari perspektif Islam dan untuk mengenal pasti apakah prinsip-prinsip serta kriteria yang seharusnya ada dalam periklanan Islam. Metodologi kajian yang digunakan dalam kertas kerja ini adalah metode kepustakaan dengan menggunakan analisis isi. Kajian ini diharapkan dapat membentuk konsep periklanan dalam perspektif Islam dari segi prinsip dan kriterianya.

Sign in / Sign up

Export Citation Format

Share Document