Development Of Banking Products Research Articles

UKT PAYMENT CONTRIBUTION TO THE EXISTENCE OF SHARIA BANKING

Payment of UKT (Single Tuition Fee) by students at tertiary institutions in Indonesia has an important contribution to the existence and development of Islamic banking. UKT payments play a role in increasing the number of Islamic bank customers in Indonesia. UKT paid by students often involves the banking system to manage and distribute these funds. Many universities in Indonesia have collaborated with sharia banks to provide UKT payment facilities that comply with sharia principles. Through the involvement of Islamic banks in the UKT payment process, students tend to be more inclined to use Islamic banking products and services. Thus, UKT payments contribute to an increase in the number of Islamic bank customers in Indonesia. the use of funds from UKT payments can help the development of the Islamic economy in Indonesia. Funds collected from UKT payments can be used by Islamic banks to support Islamic economic activities, such as financing micro, small and medium enterprises (UMKM) in accordance with sharia principles. Through the utilization of these funds, Islamic banks can provide financial access to sharia-based business actors, thereby strengthening the Islamic economic sector in Indonesia. In addition, funds from UKT payments can also be used for sharia banking product development and innovation, increasing operational efficiency, and expanding the range of services.

TRUST, SATISFACTION, AND LOYALTY OF ISLAMIC BANK CUSTOMERS: ROLE OF RELIGIOSITY

As one of the largest Muslim countries in the world, Indonesia has an important role in building a Sharia economy. The initial effort that can be made is to strengthen Sharia-based financial services. Currently, several Sharia-based banks are operating in Indonesia. However, the presence of Islamic banking has not been optimal in attracting customers to conduct financial transactions through Islamic banks. One of which is not optimal banking in applying the principle of religiosity in financial transactions. This research aimed to analyze the effect of religiosity on the trust, satisfaction, and loyalty of Islamic bank customers. The research population was all customers of Islamic banks in Pekanbaru City. An accidental sampling technique was used to get the sample of 220 respondents. Data analysis was done using path analysis with the help of the AMOS SEM program. The study's results stated that religiosity has a significant effect on customer trust and loyalty but is not significant on customer satisfaction. Customer trust has a significant effect on customer satisfaction. Customer satisfaction has no significant effect on customer loyalty. Therefore, Islamic banking must introduce and offer Sharia-based financial products to build loyal customers banks. Banks should continue to uphold Islamic teachings in every development of banking products and services to increase the trust, satisfaction, and loyalty of Islamic bank customers. In addition, banks need to retain customers who are already loyal to banks, considering that banking loyalty cannot be formed in a short timeThis research indicates that customer trust and loyalty can be formed if Islamic banks appropriately apply the principles of religious teaching in accordance with Islamic Sharia.

THE URGENCY OF MAQASHID SHARIA IN THE DEVELOPMENT OF SHARIA BANKING PRODUCTS

AbstractThe movement and growth of Islamic banking in Indonesia is increasing every year and is in demand by Muslim and non-Muslim customers. This has encouraged Islamic banking to develop its products so that they can compete with conventional banks. However, of course, this must be balanced with knowledge of Islamic maqashid and ushul fiqh in the development of banking products which are sometimes ignored by Islamic financial institutions. As a result, there is rigidity, narrow space for movement and even negligence and errors in inspection and auditing. In this paper using library research methods (library research) with a qualitative approach. The urgency of maqashid in Islamic banking products regulates all fatwas, regulations, financial and banking products as well as fiscal and monetary policies so as not to lose their shari'ah substance. Maqashid syari'ah is a determining factor in creating sharia economic products that can play a dual role (social control tools and socio-economic engineering) to realize the benefit of Muslims. Keywords: Sharia Banking; Maqashid Syariah; Banking Products.

Theory-Guided Analytics Process: Using Theories to Underpin an Analytics Process for New Banking Product Development Using Segmentation-Based Marketing Analytics Leveraging on Marketing Intelligence

Retail banking is undergoing considerable product competitiveness and disruptions. New product development is necessary to tackle such challenges and reinvigorate product lines. This study presents an instrumental real-life banking case study, where marketing analytics was utilized to drive a product differentiation strategy. In particular, the study applied unsupervised machine learning techniques of link analysis, latent class analysis, and association analysis to undertake behavioral-based market segmentation, in view of attaining a profitable competitive advantage. To underpin the product development process with well grounded theoretical framing, this study asked the research question: “How may we establish a theory-driven approach for an analytics-driven process?” Findings of this study include a theoretical conceptual framework that underpinned the end-to-end segmentation-driven new product development process, backed by the empirical literature. The study hopes to provide: (i) for managerial practitioners, the use of case-based reasoning for practice-oriented new product development design, planning, and diagnosis efforts, and (ii) for researchers, the potentiality to test of the validity and robustness of an analytical-driven NPD process. The study also hopes to drive a wider research interest that studies the theory-driven approach for analytics-driven processes.

Digitization and Financial Performance of Banking Sectors Facing COVID-19 Challenges in Central and Eastern European Countries

The COVID-19 pandemic deeply impacted not only human wealth but also all segments of the economy as well as the field of technology. Thus, the purpose of this paper was to analyze the effects that the pandemic crisis and digitization have had on the financial performance of banks in Central and Eastern European Union countries (CEEC) during the 2010–2021 period. In order to capture an overview of the financial performance of the banking systems in the 10 CEECs, we used three variables—ROA, ROE and NPL—as reference indicators. In order to highlight the impact of the COVID-19 pandemic on the performance of banking systems, we used the number of reported cases as a variable, and to highlight the impact of digitization, we used as indicators the number of automated teller machines (ATMs) per 100,000 adults, number of certificates of secure internet servers, number of credit cards, number of debit cards, percentage of individuals using internet banking, and the number of commercial bank branches per 100,000 adults. Thus, the impact of digitization and the pandemic crisis generated by the COVID-19 virus on the performance of the banking systems in the 10 CEECs is outlined through three regression models using the robust regression model. The obtained results show that, as the infection rates with COVID-19 increased, the performance of banks measured by ROE and ROA decreased. Regarding the impact of digitization on performance, we note that an increase in the use of internet banking and the security of bank servers generated positive effects on the performance of banks. The results of the study are useful for banking product development departments, who should consider the important role of digitization in increasing the performance of banking services and thus design new digital products or ways to expand existing ones on a larger scale.

КОМПЛЕКСНЫЙ ПОДХОД К РАЗРАБОТКЕ БАНКОВСКОГО ПРОДУКТА

The article discusses the main theoretical and practical issues (aspects) of the development of a banking product that underlie an integrated approach to the development of this product. First, the definition of a banking product is formulated and its characteristics are highlighted. Second, the process approach to the development of a banking product is disclosed and a list of stages of such development is proposed, indicating the appropriate procedures. Finally, the system of restrictions arising in the development of a banking product is considered, the problems associated with its development are identified, ways of solving these problems are presented, and recommendations for their implementation are formulated. Following an integrated approach will allow the bank to create high-quality banking products, with the help of which it is possible not only to retain existing customers and attract new ones, but also to increase the efficiency of functioning, improve its image and reputation. The relevance of studying the theory and practice of developing banking products is due to the regular nature of the development of banking products (as opposed to banking services), as well as an increase in banks’ need to replenish their list with demanded and profitable banking products, which is caused by the growing instability of the economy, tightening regulation and increased competition. The methods of analysis, synthesis, comparison and generalization allowed us to highlight the theoretical and practical issues (aspects) of banking product development

Impact of Demographic Trends on Retail Banking

The number of trends directly impacting the development of banking services, the business model of financial intermediaries and the future of the sector is both large and very diverse, and thus represent a great interest for research from the point of view of modern economic science. The goal of this paper is to identify patterns in the development of banking products in the modern economy, which is characterized by the instability of the regulatory environment, a significant number of technological innovations in related areas, conflicting demographic trends, and an accelerated change in customer preferences. Data makes it possible to form a rather wide database of balanced panel data covering most regions of Russia over a long period (from 2010 to 2020). The results obtained indicate a fairly high quality of the regression: characteristics such as income and credit history strongly affect the volume of loans in a region (these results were expected as mentioned factors in most cases indicate a normal inertial process of changing the attitude of credit institutions and their customers to a banking product, in this case – retail lending). On the other hand, the factors characterizing the non-financial socio-demographic characteristics of the population of the regions, such as quality of health care, financial literacy, also turned out to be significant. The obtained quantitative estimates might be used for credit institutions for management of risks and product development in various territories and planning expansion.

СУЧАСНІ ТЕНДЕНЦІЇ РИНКУ БАНКІВСЬКИХ ПОСЛУГ ІЗ ЗАСТОСУВАННЯМ ІНФОРМАЦІЙНИХ ТЕХНОЛОГІЙ

In the current conditions of globalization and development of international relations, the banking sector and the banking system are going through a number of transformations. These changes are caused by the constant need to maintain stability, competitiveness and sustainable economic growth of banks. Today, the digital economy occupies a special place in all spheres of public life, and also undoubtedly affects the financial sector. Thanks to modern digital technologies, we can see not only the emergence of new electronic financial services and products, but also the modernization of the forms in which they are provided. At the same time, the most significant transformations are taking place in the field of consumer banking and payments. In the article the authors analyzed the key stages of the development of banking products, in particular the search for new technological solutions and market segments such as insurance business, financial leasing, asset management and real estate investment. The authors described the key development trends such as customer focus, controlling and innovation management. It has also been proved that all the latest trends that have emerged in the banking sector over the last period of time are determined by a common prerequisite – the development of information technology. In particular, the impact of information technologies on individual banking institutions with the aim of introducing innovative banking products and services, such as mobile and online payments, deposit and trading account management programs, is investigated. Attention is focused on such modern technologies as blockchain and cryptocurrency, as well as the impact of remote services. It is proved that the remote mode of operation has become a corporate standard for many Ukrainian banks, because today with the help of a phone or tablet it is possible to control the financial results of banking operations, analyze financial indicators and receive automatic notifications about events that require special attention. The authors also gave the most striking examples of innovations in the banking sector – such companies were «Capgemini» and Ukrainian Monobank. The authors conclude that the prospects for further research lie in an in-depth consideration of the process of diffusion of banking innovations depending on various macroeconomic and microeconomic factors, as well as the nature and key properties of innovations in the banking industry according to their classification.

SUSTAINABLE FINANCE AND BANKING: A CHALLENGE FOR REGULATORS AND A RISK MANAGEMENT SYSTEM

The key position of banks in the financial sector, as well as their indisputable role in financing economic development, have conditioned the need to consider their impact on the environment. The implementation of the concept of sustainability in banking has conditioned the transformation of banks in the direction of their greater corporate eco-efficiency and the development of banking products and services that contribute to sustainable development. Sustainable finance for banks is a source of new opportunities, but on the other hand, banks are more and more concerned about their exposure to environmental risk. Recognizing the impact of environmental risks on banks’ operations, central banks and supervisors are taking a number of initiatives to reduce the negative impact of these risks on banks’ operations, and, thus, financial stability. The paper aims to point out the challenges that sustainable banking has posed to regulators and the risk management system

Digital Technologies in Lending Small and Medium-Size Enterprises in Russia

Purpose: The article is devoted to the assessment of changes in the forms and methods of lending Russian Small and Medium-sized Enterprises (SMEs). The purpose is to outline the role of digital technologies in the system of lending SMEs in Russia. Design/Methodology/Approach: To achieve this goal it is necessary: first, to outline the main changes in the banking industry considering digital technologies, second, to list the main banking products, how digital technologies influence the most (banks as ecosystems) and third, to describe how digital technologies are beneficial in lending SMEs. Findings: The authors defined the crucial role of digital technologies, underlined the leading role of the Russian financial sector in the world according to experts and offered the scheme of a digital banking product development. Also, the authors compared digital development in the EU and in Russia and made the conclusion towards some new opportunities to SMEs. Practical Implications: The research results may be implicated in a system of lending by means of digital products offered to SMEs and future key points of development in the digital sphere for the commercial banks, e-trade and fintech companies. Originality/Value: The main contribution of this article is in comparison between digital development in the EU and Russia, some leading role of the Russian banks in the world, description of a digital banking product development and considering the experience of the ecosystem of Sberbank for SMEs in Russia.

STRATEGI PENGEMBANGAN PRODUK BANK SYARIAH DI INDONESIA

At present Islamic banking is growing rapidly, along with these developments various types of Islamic Bank products are also growing, where product innovation is the key to Islamic banking to be more competitive and more rapidly developed in accordance with the needs of the community. Product development strategies are one aspect of a marketing strategy. Banking product development is an effort to increase customers by introducing new banking products. The strategy of developing banking products is an effort to increase the number of customers by developing or introducing new banking products. Innovation and creativity in product creation are one of the main keys in this strategy. In general, every Islamic bank in running its business has five operational principles, namely as follows: Principles of pure savings, the principle of profit sharing, the principle of buying and selling, the principle of rent, and the principle of service (fee). Product development strategies are part of a corporate strategy. Islamic banks provide many options for the community to obtain financing that does not only depend on one type of bank with its products, if Islamic banks are able to read the potential of the region and the needs of the population is owned by Islamic banking, the development of Islamic banking products is a necessity for Islamic banks those in the region to be able to answer the needs of the community. This condition can occur can not be separated from the support of DPS who must be active and innovative and be with each bank in the area. As well as product marketing strategies must be carried out by conducting strategic alliances with mass media (radio, television and print media) and event organizers in the form of exhibitions (expo), so that these products are widely known and directly felt by the public at large. In certain expos such as people can directly register for sharia credit cards or make financing requests for the purchase of sharia products that are on display. Through this strategy Islamic banks can get a lot of success, both in increasing portfolios and marketing new products.

Strategi Pengembangan Produk Bank Syariah Di Indonesia

At present Islamic banking is growing rapidly, along with these developments various types of Islamic Bank products are also growing, where product innovation is the key to Islamic banking to be more competitive and more rapidly developed in accordance with the needs of the community. Product development strategies are one aspect of a marketing strategy. Banking product development is an effort to increase customers by introducing new banking products. The strategy of developing banking products is an effort to increase the number of customers by developing or introducing new banking products. Innovation and creativity in product creation are one of the main keys in this strategy. In general, every Islamic bank in running its business has five operational principles, namely as follows: Principles of pure savings, the principle of profit sharing, the principle of buying and selling, the principle of rent, and the principle of service (fee). Product development strategies are part of a corporate strategy. Islamic banks provide many options for the community to obtain financing that does not only depend on one type of bank with its products, if Islamic banks are able to read the potential of the region and the needs of the population is owned by Islamic banking, the development of Islamic banking products is a necessity for Islamic banks those in the region to be able to answer the needs of the community. This condition can occur can not be separated from the support of DPS who must be active and innovative and be with each bank in the area. As well as product marketing strategies must be carried out by conducting strategic alliances with mass media (radio, television and print media) and event organizers in the form of exhibitions (expo), so that these products are widely known and directly felt by the public at large. In certain expos such as people can directly register for sharia credit cards or make financing requests for the purchase of sharia products that are on display. Through this strategy Islamic banks can get a lot of success, both in increasing portfolios and marketing new products. Keywords: Product Development Strategy, Indonesia Shariah Bank

Directions of development of bank technologies applied in the russian market of retail credit services

The relevance of the research is determined by the focus of the banking segment on digitalizing banking services, the gradual transition from the development of banking products based on the needs of certain social strata and groups to individual selected products, taking into account the behavior and structure of the client's balance, which involves the active development of data collection technologies and introduction of advanced systems of protection of the client's funds and confidential information. In this article, we present new banking technologies that can increase the efficiency and security of lending. In addition, we consider the mechanism affecting technologies, supply on the markets of IT services, their prospects for further application and development. There are comments of experts and bank employees about prospects of these technologies. The study of modern technologies applied by individual banks in Russia allowed the authors to identify key trends in the technological re-equipment of banks as well as explore the advantages and disadvantages of already tested and mastered technological solutions.

Financing Card Based on Murabahah Contract: The Legal Implications on a Credit Card

The development in the economic sector is influencing the development of banking products. One of the many products that is commonly used is credit card. In this context, The use of credit cards practically bring some problems that are reflected in the Islamic Law Perspective, especially because it does not specifically manage the credit cards according to Islam. It is different from the conventional credit cards that already have legal instruments clearly. Therefore, this study examines the legal implications in financing cards based on murabahah contract. This research is a normative legal research by analyzing the management of the Financing Card Based on Murabahah Contract. In order to help the analyses, this study uses the theory of Mаqаsid аl-syаri'аh and the theory of expediency (utility). The results that found related to the legal implications in financing cards based on murabahah contract can be reviewed from the relevancy to the theory of usefulness (utility). Credit cards as a modern means of payment, provide many conveniences and benefits in the midst of the rapid development of the business world. In addition, to address the use of credit cards based on usury, the Syariah Bank issued a Syariah Credit Card or Financing Card, this product must be based on the National Syariah Council Decision (Fatwa Majelis Ulama Indonesia) No.54 / DSN-MUI / 2006 on Syariah Card. Then in order to avoid legal implications that are not in accordance with syariah principles, from the aspect of the term that is used in Syariah, it is more appropriate to use the financing card term instead of credit card.

PERTARUNGAN HUKUM SHARI’AH DAN KAPITALISME DALAM SISTEM PERBANKAN KONTEMPORER DI INDONESIA

Islamic banking is a bank that operates based on economic principles that set in Islamic
 law. The capitalist system with its interest concept is an economic system that has some
 variants contrary to Islamic law. Although, the concept of interest a debate among Muslim
 scholars and scientists, but the presence of Shari’ah banking has proven economic expert
 support Muslims with the prohibition of interest system. Philosophically and axiology
 profit and loss sharing, sale and purchase, and the system of interest has its implications.
 Rate system is a system that is contrary to shari'ah banking operating system, but often the
 existing product ownership in the shari'ah as the product mura>bah}ah is identical to the
 system of interest. Similarly, other products are still difficult to distinguish from
 conventional systems / capitalist in its operations. On the plains, epistemology, banking
 products shari'ah should be improved so that it becomes a pure economic system is based
 on Islamic law, not the capitalist system of legalized with the philosophy of Islamic law. In
 other words, there needs to be alignment between the philosophical and epistemological
 aspects in the development of banking products shari'ah.
 Keywords: Profit sharing, murãbahah, islamic law, riba’, bank, interets.

DEVELOPMENT OF WA‘D-BASED PRODUCTS IN THE ISLAMIC BANKS OF BANGLADESH: A CASE STUDY

A large number of product innovations in Islamic banking have been achieved globally through the usage of wa‘d. However, little is known about the product innovation in the Islamic banks of Bangladesh. Therefore, this study aims at examining the development of wa‘d-based product in the Islamic banking of Bangladesh. It analyzes the product structures that involve wa‘d and attempts to find out the Shariah issues and other challenges. Besides, it suggests potential mechanism to innovate more products based on wa‘d for the Islamic banks in Bangladesh. The study adopts a case study approach where two full-fledged Islamic banks and one Islamic banking window are selected. The study conducts semi-structured interviews with the bankers and Shariah advisors in Bangladesh. Besides, it employs document analysis method to strengthen the findings. The study finds out that even though wa‘d has much potential, it has been used only in three consumer banking products. Due to the stringent position of the Shariah scholars, it is not possible to practice remarkable treasury products as well as some consumer products. The study recommends that the Shariah scholars should be more flexible in exercising legal reasoning (ijtihad). Together with the wa‘d, muwa’adah and wa‘dan can be two viable concepts for more product innovation in Bangladesh. The study might be useful for the practitioners in other jurisdictions. Furthermore, it adds new knowledge for Islamic banking product development.