scholarly journals The Good, the Bad and the Ugly of Islamic Credit Cards

2021 ◽  
Vol 9 (1) ◽  
pp. 43
Author(s):  
Zaimy Johana Johan ◽  
Mohd Zainee Hussain
Keyword(s):  
Market Share ◽  
Financial Services ◽  
Credit Card ◽  
Banking System ◽  
Credit Cards ◽  
Islamic Finance ◽  
Industry Growth ◽  
Growth Area ◽  
The Government ◽  
And Performance

The Malaysian Islamic financial services have developed and thrived in the competitive domestic and global financial market especially in the last three decades.  The Government has provided the industry conducive enabling environment to catalyse the industry growth and development. Islamic finance has gained prominence and been identified as the growth area in the nation’s financial sector.  The Bank Negara Malaysia Annual Report 2020 published on 3 April 2020 amongst others highlights that with an advanced regulatory framework already in place, Islamic finance is poised to play a more prominent role in the coming period, particularly in its potential to apply shariah principles to expand social finance and address market gaps in innovative ways.  With a range of innovative shariah compliant products and services, the halal financial services have gained market acceptance from both Muslims and non-Muslims alike, albeit with different levels of acceptance according to the products.  Specifically, to a certain degree it appears that the market has been more receptive of other Islamic financial services such as loans for various purposes including purchases of securities, properties, vehicles; working capital and even personal loans than the credit cards.  According to the Bank Negara Monthly Statistical Bulletin: Monthly Highlights and Statistics in September 2020, as of September 2020, Islamic banks had disbursed 35.7% or RM651.4 billion of the total loans in the banking system in September 2020.  The Islamic credit cards however have a lower market share of 10.2% or RM3.7 billion of total credit card transactions.  The slower growth pace, lower market share and performance of Islamic credit cards vis–a-vis conventional credit cards, and also compared with other Islamic financial products merit further scrutiny and analysis to help better understand the issues pertinent the growth of the Islamic credit cards. Issues such as why other Islamic loans and hire purchase products have performed better; why the slower growth of Islamic credit cards; customers and market expectation of Islamic credit cards; Islamic credit card product development and marketing strategies need to be carefully examined in order to overcome Islamic credit card growth conundrum.

scholarly journals DETECTING CREDIT CARD FRAUD USING MACHINE LEARNING ALGORITHMS

InterConf ◽  
2021 ◽  
pp. 393-403
Author(s):  
Olexander Shmatko ◽  
Volodimir Fedorchenko ◽  
Dmytro Prochukhan
Keyword(s):  
Machine Learning ◽  
Financial Services ◽  
Credit Card ◽  
Banking Sector ◽  
Learning Algorithm ◽  
Learning Algorithms ◽  
Credit Cards ◽  
Internet Banking ◽  
Machine Learning Algorithms ◽  
Credit Card Fraud

Today the banking sector offers its clients many different financial services such as ATM cards, Internet banking, Debit card, and Credit card, which allows attracting a large number of new customers. This article proposes an information system for detecting credit card fraud using a machine learning algorithm. Usually, credit cards are used by the customer around the clock, so the bank's server can track all transactions using machine learning algorithms. It must find or predict fraud detection. The dataset contains characteristics for each transaction and fraudulent transactions need to be classified and detected. For these purposes, the work proposes the use of the Random Forest algorithm.

Effectiveness of Financial Inclusion Initiatives

2018 ◽  
pp. 48-65
Author(s):  
K. Sanal Nair ◽  
Saumya Jain
Keyword(s):  
Research Methodology ◽  
Financial Services ◽  
Credit Card ◽  
Financial Inclusion ◽  
Descriptive Statistics ◽  
Mobile Banking ◽  
Indian Government ◽  
The Past ◽  
The Government ◽  
One Way Anova

An inclusive financial system has been the major agenda of the Indian government over the past few years and several steps have been taken in this direction. The main purpose of the study is to assess the effectiveness of financial inclusion initiatives taken by Rajasthan government. A questionnaire was drafted and was sent to people from weaker section of the society who have been the beneficiaries of the financial inclusion initiative of the government. Research methodology adopted for the study includes descriptive statistics and one-way ANOVA was used to test the association/non-association between the variables. The study concluded towards lack of awareness and usage of financial inclusion initiatives, especially internet, mobile banking, and credit card. In terms of experience with financial services, respondents were positive towards interest on loans and help received by banking staff with respect to documentation and identification norms as well as branch timings. However, distance from the bank and the availability of ATM was an issue for them.

Governance and Financial Reporting of Islamic Banks

2020 ◽  
pp. 245-262
Author(s):  
Ambareen Beebeejaun
Keyword(s):  
Financial Reporting ◽  
Financial Services ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Associate Member ◽  
Reporting Requirements ◽  
Fast Pace ◽  
The Government ◽  
Set Up

While Islamic finance continues to evolve at a fast pace across the globe, the government of Mauritius is undertaking various initiatives to encourage and facilitate the conduct of Islamic banking activities in the country. Examples are the admission of the Bank of Mauritius as an associate member of the Islamic Financial Services Board in 2007, the enactment of the guidelines for Islamic banking in 2008, and the hosting of the 11th Islamic Financial Services Board Summit in 2014. Consequently, through these endeavors, several stakeholders offering Islamic finance products are expressing interest to set up their business infrastructures in Mauritius. Hence, this chapter discusses the main governance and financial reporting requirements of the offeror of Islamic banking products such that potential investors are acquainted with the legal and compliance needs of an Islamic bank operating in Mauritius.

scholarly journals Analisis Persepsi Bendahara Pengeluaran Atas Aspek Kepentingan dan Kinerja Pengguna dan Mitra Perbankan Dalam Penerapan Kartu Kredit Pemerintah

2021 ◽  
Vol 2 (1) ◽  
pp. 17-34
Author(s):  
Ali Said ◽  
Sutiono Sutiono
Keyword(s):  
Performance Analysis ◽  
Customer Service ◽  
Credit Card ◽  
Credit Cards ◽  
Training Center ◽  
Online Questionnaire ◽  
Customer Complaint ◽  
Government Credit ◽  
And Performance ◽  
And Training

Abstract The Indonesian government has implemented government credit card since July 2019. This research provides importance and performance analysis of implementing government credit cards in ministries/agencies of Indonesia. This study collected empirical data from an online questionnaire which was distributed to alumni of the expenditure treasurer training organized by the Budget and Treasury Education and Training Center. The selected samples from 222 respondents, was processed using importance and performance analysis. The results of this empirical research shows the performance of KKP holders and the customer service of KKP issuing banks was still below expectations according to the perception of spending treasurers. KKP holders must be provided with intensive socialization on the use of KKP and customer complaint services at KKP issuing banks must be improved. Other results based on non implementing KKP treasurer perceptions, there are still some obstacles faced by ministries/agencies at the implementation of government credit cards. The results of this study cannot be generalized to the implementation of KKP in Indonesia, because of limited number of respondent samples. Abstrak Pemerintah Indonesia telah menerapkan metode pembayaran tagihan dari rekanan pemerintah menggunakan uang persediaan kartu kredit pemerintah mulai bulan Juli tahun 2019. Penelitian ini bertujuan untuk menganalisis kepentingan dan kinerja atas penerapan kartu kredit pemerintah pada kementerian/lembaga. Data penelitian diperoleh melalui kuesioner online yang disebar melalui media sosial whatsapp. Responden penelitian merupakan alumni pelatihan bendahara pengeluaran yang diselenggarakan oleh Pusdiklat Anggaran dan Perbendaharaan. Sebagian sampel penelitian yang berjumlah 222 responden diolah menggunakan analisis kepentingan dan kinerja. Hasil penelitian menunjukkan bahwa kinerja pemegang KKP dan layanan bank penerbit KKP masih di bawah harapan menurut persepsi bendahara pengeluaran. Pemegang KKP harus diberikan sosialisasi penggunaan KKP yang memadai dan layanan keluhan pelanggan pada bank penerbit KKP harus ditingkatkan. Selain itu masih ditemukan beberapa kendala yang dihadapi oleh kementerian/lembaga pada saat penerapan kartu kredit pemerintah. Dengan keterbatasan jumlah sampel responden, maka hasil penelitian ini tidak dapat digeneralisasi untuk penerapan KKP di Indonesia.

scholarly journals LokSuvidha, Converting Non-customers to Customers: The Saga of Organizational Growth Through Technology

2019 ◽  
Vol 1 (1-2) ◽  
pp. 33-42
Author(s):  
Som Sekhar Bhattacharyya
Keyword(s):  
Financial Services ◽  
Banking System ◽  
Bottom Of The Pyramid ◽  
Organizational Growth ◽  
Rural And Urban ◽  
Growth Firms ◽  
Customer Segment ◽  
Social Cause ◽  
The Government ◽  
Two Wheeler

Emerging economies like India has been characterized with a substantial ‘bottom of the pyramid’ (BOP) population. BOP has also been one of the most promising market segments for business growth. Firms serving specifically the BOP customer segment was thus engaged in serving a social cause as well because BOP consumers (a weaker segment of society) got benefited because of their consumption of products or services offered by the business firm. In India, a large section of BOP customers who were economically progressing and becoming the new middle class used two-wheeler automobile to commute for personal as well as business needs. Two-wheeler automobile was lifeline for millions of rural and urban Indians. Two-wheelers were used for both consumptions as well as asset building purposes by Indian consumers. Affordability of two-wheeler had been a big challenge for this section of society. Borrowing from Indian credit institutions has been a very potent method towards owning two-wheelers for this segment. There was a section of BOP customers who were beyond the umbrella of the traditional Indian banking and financial sector. Since the decade of mid-2010s, the Government of India had been working hard to include this part of society into the banking system and had floated multiple social schemes to achieve banking inclusion. LokSuvidha, an Indian financial services start-up was founded by Mr Nimish Laddhad and Mr Kamlesh Laddhad. LokSuvidha developed an unique business model for providing credit to this part of society. LokSuvidha had also deployed cutting-edge technology solutions to build a scalable, profitable working model. However, the founders of LokSuvidha were in a dilemma regarding whether to expand LokSuvidha further in scale or scope or to concentrate only in the extant market base of its operations. This decision was paramount for the founders to be answered to shape the future of LokSuvidha in terms of both market reach and organizational span.

THE CURRENT STATE OF THE BANKING SYSTEM OF SAUDI ARABIA

2017 ◽  
Author(s):  
Maryna Korol ◽  
◽  
Olha Shumnegra ◽  
Keyword(s):  
Saudi Arabia ◽  
Financial Services ◽  
Banking Sector ◽  
Banking System ◽  
Scientific Publication ◽  
Islamic Banking ◽  
Historical Aspect ◽  
Current State ◽  
The Government ◽  
And Control

This scientific publication analyzes the current state of the banking system of the Kingdom of Saudi Arabia. The peculiarities of the functioning of the Islamic banking system, the main types of financial products provided by banks and the laws under which financial services are provided to Muslims are identified. The basic principles of Islamic banking, which are prescribed in the Sharia, are described, such as, for example, the exclusion of interest on all financial transactions. There is also a list of major Saudi banks and foreign affiliates operating in the country. The historical aspect of the formation of the banking sector is studied. The main financial indicators are analyzed: the dynamics of assets, liabilities, the number of loans to private and corporate clients, the share of Saudi assets in global Islamic finance. Attention is also paid to the prospects and success of the stock market. The issue of management and control over the activities of banks and its role are studied. a list of specialized credit institutions established by the government to provide highly specialized loans to citizens of the kingdom. The positive dynamics of all indicators even in the conditions of global crises, thanks to the well-laid foundation and the further strategy concerning functioning in the conditions of the world pandemic are allocated. The list of the main internal problems which can suspend growth in the future is considered. The issue of the country's dependence on oil prices, with further impact on financial diversification, is considered separately. The prospects of the banking system of Saudi Arabia in the near future, and the role of the Kingdom as a partner in financial relations for the domestic economy are determined. Conclusions are made on the basis of the conducted research and prospects of further strategic development in this direction.

Islamic Finance Fundamentals With Applications in Malaysia

2016 ◽  
Author(s):  
Shahriza Osman ◽  
Zahiruddin Ghazali ◽  
Syed Mohd Na’im Syed Salim
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Banking System ◽  
Basic Knowledge ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Risk And Uncertainty ◽  
Financial Systems ◽  
Political Economic ◽  
Financial Issues

Islam postulates a unique link of contracts among the creator, man and society on the basis of Syariah law that directly affects the workings of the various social, political, economic, and financial systems. Therefore, to understand the way in which economic affairs and financial institutions are organized in an Islamic system, it is first necessary to comprehend the nature of this relationship. Consequently, one cannot study a particular aspect or part of an Islamic system, economics, for example, in isolation, without having understanding of the basic knowledge of Islamic finance. Islamic finance products are contract-based. This book explains Islamic finance, which refers to the provision of financial services in accordance with Syariah law in chapter one. The Syariah law is the foundation for the establishment of an Islamic banking system. Chapter two illustrates the differences between the principles of Syariah and Tabii. Chapter three explains the Islamic theory of profit. Chapter four is about risk and uncertainty, which is known as gharar in Islamic finance. Chapter five discusses interest/riba, which is the most significance principle of Islamic banking. Chapter six explains some of the financial issues related to Islamic banking.

scholarly journals Legislative and Other Selected Challenges Affecting Financial Inclusion for the Poor and Low Income Earners in South Africa

2020 ◽  
Vol 64 (3) ◽  
pp. 337-355
Author(s):  
Howard Chitimira ◽  
Menelisi Ncube
Keyword(s):  
South Africa ◽  
Low Income ◽  
Financial Services ◽  
Banking System ◽  
Financial Inclusion ◽  
The Poor ◽  
Financial Exclusion ◽  
Relevant Role ◽  
Legislative Framework ◽  
The Government

AbstractThis article discusses the challenges affecting the achievement of financial inclusion for the poor and low-income earners in South Africa. The concept of financial inclusion could be defined as the provision of affordable financial products and services to all members of the society by the government and/or other relevant role-players such as financial services providers. This article identifies unemployment, poverty, financial illiteracy, over-indebtedness, high bank fees, mistrust of the banking system, lack of relevant national identity documentation and poor legislative framework for financial inclusion as some of the challenges affecting the full attainment of financial inclusion for the poor and low-income earners in South Africa. Given these flaws, the article highlights the need for the government, financial institutions and other relevant stakeholders to adopt legislative and other measures as an antidote to financial exclusion and poverty challenges affecting the poor and low-income earners in South Africa.

scholarly journals Concentration and Competition in the Albanian Banking Sector

2015 ◽  
Vol 2 (1) ◽  
pp. 168 ◽  
Author(s):  
Eleana Lici ◽  
Irena Boboli
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Market Competition ◽  
Banking System ◽  
External Financing ◽  
Low Level ◽  
Banking Market ◽  
The Government ◽  
High Level

Albania has a relatively new financial system, where banking system is the most developed financial service in our country, with a share of 94, 4% of the total financial services. This is a phenomenon of countries with emerging economies, which proves that there is greater reliance on the state economic development of the banking sector, by effecting from the households to the biggest investors and the government. As in any market, competition is important for the banking sector because, it affects the efficiency and the quality of services offered. Furthermore, competition in banking has also implications for other sectors of the economy. So, higher competition in the banking sector is found to be associated with a faster growth of other sectors of the economy that rely on external financing. The main goal of this paper is to understand the characteristics of competition in our banking system and study the relationship between the level of concentration and competition. We are going to measure the concentration by the “H” indices. The “H” (Herfindaflit) indices is a measure of the level of the concentration of the banking system of a country. A high level of the indices shows a high level of concentration and as a consequence a low level of competition. A low level of the indices shows a low level of concentration which is sign of a banking market with a high competition.

scholarly journals An Empirical Investigation on Credit Card Repayment Pattern of Academicians in Malaysia

2018 ◽  
Author(s):  
Kuah Yoke Chin ◽  
Wei Chooi Yi ◽  
Chin Lai Kwan ◽  
Chia Mei Si
Keyword(s):  
Credit Card ◽  
Empirical Investigation ◽  
Credit Cards ◽  
Tertiary Institution ◽  
Moderating Variables ◽  
Personal Attitude ◽  
Credit Card Market ◽  
The Government ◽  
Informed Society ◽  
Moderating Role

The credit card market has witnessed tremendous growth resulting from a paradigm shift in technology. The genuine usage of credit cards as a form of convenience has diverged to overspending, irresponsibility, revolving liability and bankruptcy. This implies that possession of credit cards has brought about a change in users’ repayment behavior. Thus, this study aims to determine academicians’ credit card repayment pattern in a private tertiary institution in Malaysia. The dependent variable is the repayment pattern and the independent variables that serve as the attributes include personal attitude and spending pattern, while, gender and parenthood serve as the moderating variables. Findings revealed that personal attitude and spending pattern were important attributes in determining the repayment pattern among the academicians. Gender and parenthood were found to play a moderating role in the repayment pattern. Findings from this study is expected to facilitate the government and credit card companies to work towards nurturing a financially healthier and informed society, and also to  each out positively to the younger generations through the influence of the academicians.  

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