Nadia patrova ( P SLIDE)
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Transcript of Nadia patrova ( P SLIDE)
CUSTOMERS’ ACCEPTANCE ON FINANCIAL INSTITUTIONS’ PRODUCTS: ISLAMIC VERSUS CONVENTIONAL FINANCIAL INSTITUTIONS
GROUP NAME: NADIA PETROVA 1
OUTLINE
Objective
Introduction
Financial Institution Product
Islamic
Conventional
Benefits
Limitations
Discussion & Findings
Conclusion
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OBJECTIVE
To compare the Islamic and conventional product
To identify the benefits and limitations of financial institutions product between Islamic and conventional financial institution
To analyze factors that influence customer decision
To measure customer acceptance on financial institution product
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INTRODUCTION
Financial institution in Malaysia: Islamic and conventional
Islamic financial institution is based on Shariah (Islamic law)
Conventional financial institution is fully based on manmade principles
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FINANCIAL INSTITUTION PRODUCTS
Islamic Conventional
Deposits (Al-Wadiah) Basic and current account
Investments (Al-Mudharabah) Saving deposit account
Housing financing
(Bai’ Bithaman Ajil)
Bank cards
Leasing/Vehicle financing
(Al-Ijarah)
Loans
Project financing (Al-Musyarakah) Insurance 5
BENEFITS Islamic Financial
Institution Product
Conventional Financial
Institution Product
Riba prohibit
(No interest on loan)
Interest charge to the customer
Shariah foundation Non-shariah compliant
Low risk product Low and higher risk of product
Rebates are give for early
settlement at the Bank's
discretion. 6
LIMITATIONS
Islamic Conventional
Shariah restriction Have competition in product and
services promotion
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Growing of Islamic financial institution (IFI)
IFI strength position
IFI product grew from RM23.8B to RM434.6B
Customer began to accept Islamic product
However, IFI product still not fully accepted
Not fully understanding about IFI product
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DISCUSSION & FINDINGS
CONCLUSION
Islamic financial product more prefer by the Malaysian customer since the Muslim population is higher by religious factor.
Educating customer about the IFI products
IFI & CFI can helped in boosting Malaysian economy
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Q&A