Islamic finance: more expectations and less disappointment

Lone, Fayaz Ahmad; Ahmad, Saeed

doi:10.21511/imfi.14(1).2017.14

Cited by 20 publications

(9 citation statements)

References 18 publications

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“…Kamarulzaman and Madun (2013) found that the frontline employees in IFIs themselves are unaware and unclear on their own products/services, which finally fail them to market their products/services to the customers. Lone and Ahmad (2017) argued that IFIs are incapable of understanding the needs of the customer, which finally fails them to train their employees and tailor their product. The significance of human resources in the takaful industry has been studied by a number of researchers such as Salleh et al (2012) on the Quranic conditions applicable to the agents in takaful; Zawawi et al (2021) on takaful practitioners' sustainable practice; Njagi (2019) on personality traits of takaful salesforce; and Ghani and Shaari (2016) on ethical aspects of takaful agents.…”

Section: Review Of Literature and Theoretical Underpinningmentioning

confidence: 99%

Saddling effect of underlying contracts on sales performance: a multi-group analysis in the takaful industry

Shamsudheen

Mahomed

Muneeza

2022

JIMA

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Purpose This study aims to examine the impact of information overload (referred to as the saddling effect in this study) of underlying contracts on the sales performance of the salesforce at takaful institutions with special reference to addressing the heterogeneous effect among distribution channels. Design/methodology/approach A total of 311 samples were collected from the sales professionals of the takaful industry in Malaysia using a purposive sampling technique and the empirical analysis was conducted with the measures of model fit and bootstrapping technique using partial least square structural equation modeling and multi-group analysis. Findings Empirical results indicate that the saddling effect of the underlying contracts is evident among salesforce and the magnitude of the impact was found to be heterogeneous between the groups of salesforces in different distribution channels. Practical implications Findings recommend respective authorities of takaful institutions to intensify capacity building for their salesforce, particularly in the area of shariah knowledge and nature of underlying Islamic contracts used in the takaful products. A significant heterogeneous effect between distribution channels suggests that the actions and policy formulations should be diverse between the salesforce at different distribution channels and higher attention should be catered for the salesforce at the direct selling channel. Originality/value The increased information expectation (i.e. underlying contract knowledge) on takaful salesforce and its impact on their sales performance have not been documented before. The increase in information may create a burdening effect or what is referred to in this study as the information or knowledge “saddling effect.” If a saddling effect is identified, this may be a formidable reason for the slowing growth of the takaful industry in the respective market. It is expected that the outcome of this study would assist not only to fill the gap in the literature of personnel selling in the takaful industry but also will assist the takaful institutions in formulating appropriate policies for tackling the issue of the saddling effect of underlying contracts.

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Section: Review Of Literature and Theoretical Underpinningmentioning

confidence: 99%

Saddling effect of underlying contracts on sales performance: a multi-group analysis in the takaful industry

Shamsudheen

Mahomed

Muneeza

2022

JIMA

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“…Source: tracking results, processed While, assets-based provinces in Indonesia can be seen in the following table : Table -2 Source: tracking results, processed However, on the other hand, people's expectations (Lone & Ahmad, 2017) of the vital role of Islamic banking (Yuniarti, 2017) in order to participate in helping the growth as well as the development of the level of welfare of the Indonesian people (Saputro et al, 2018). Until now, it assessed by many Islamic banking experts or Islamic economics themselves are still far from expectations, even blunt, given the banking behavior that it runs not much different from conventional banking (Elsa et al, 2018(Elsa et al, , pp.…”

Section: Table-1 Sharia Banking Growthmentioning

confidence: 99%

Development of Sharia Banking and Its Contributions for the Development of National Banking

Fitriyah

2020

Int. J. Nusantara Islam

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The development and growth of shari'a banks after more than two decades in Indonesia is very spectacular, so that spurred the level of economic growth, but if it is related to the substance of the objectives of sharia bank establishment is the alleviation of poverty and unemployment, it will even increase. Based on data from research studies examining, the contribution of Islamic banking to the development of national law, namely by the existence of people who behave economically in sharia and business behavior of Muslim entrepreneurs are included in the targets of the Islamic economic movement in Indonesia. Even though it looks rather slow, the non-financial side of this economic activity is also growing.

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“…While there are limitations in existing financial sector performance evaluation systems as far as the IBSI is concerned, the literature depicts many expectations from the industry (Lone & Ahmad, 2017). At times those mounting expectations are beyond the capacity and mandate of the IBSI.…”

Section: Introductionmentioning

confidence: 99%

Objective Performance Evaluation of the Islamic Banking Services Industry: Evidence from Pakistan

Hanif¹,

Farooqi²

2023

IJIF

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Purpose — The study documents the performance of the Islamic banking services industry (IBSI) in light of the Islamic finance objectives, notably financial stability, equitable distribution of wealth, and social responsibility. Design/Methodology/Approach — After drawing the performance evaluation framework based on the objectives, the research conducts a balance sheet analysis of the IBSI in Pakistan for 32 quarters (2013Q4–2021Q3). The analysis examines sources and uses of funds by looking at the application of financial contracts and sectoral distribution of financing. Objectively classified data trends are reported through graphs. Findings — Findings suggest that the domestic IBSI has shown progress in achieving primary and intermediate objectives, including commercial performance, contribution to equitable wealth distribution, and financial stability. However, the industry’s in-practice business models lack any significant contribution to the social sector, which represents a more advanced objective. Originality/Value — The contributions to the literature include development of a performance evaluation framework based on Islamic finance objectives, and documentation of findings on the IBSI’s achievements in Pakistan. Research Implications — The study recommends that regulators develop a legal framework for business models of the IBSI. It also recommends that managers of domestic Islamic banks include the social sector as well as agricultural and rural areas in financing and investment portfolios. Article Classification — Research paper

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Islamic finance: more expectations and less disappointment

Cited by 20 publications

References 18 publications

Saddling effect of underlying contracts on sales performance: a multi-group analysis in the takaful industry

Saddling effect of underlying contracts on sales performance: a multi-group analysis in the takaful industry

Development of Sharia Banking and Its Contributions for the Development of National Banking

Objective Performance Evaluation of the Islamic Banking Services Industry: Evidence from Pakistan

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