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  • Adem Aman

Marketing Strategy of Islamic Banking and Finance

Güncelleme tarihi: 12 Ara 2023


Overviews of Islamic banking and finance market strategy


Islamic banking and finance is a business entity that operates like any other commercial enterprise. Since its inception, various strategies and methods have been used as the basis of sound marketing strategy in Islamic banking. However, despite the various literature reviews and books published in this field, a lot of ambiguity still exists in the industry associated with the IB marketing strategy. Whereas, some references approach it in an extremely conservative manner, while others are too liberal or simply copy or just imitate practices of the conventional system.



According to the development and guidance of the fundamentals of "Islamic law", the middle way is always preferable, as well as the basic principles of shari'ah ruling, especially shariah compliance. It is expected and recommended that Islamic banks and other Islamic-related institutions should understand the expectations, preferences, and behaviors of their customers. One of the major mistakes of Islamic banking is that they do not separate religion or faith from business mentality. This means that religion is not the only factor that drives clients to use Islamic banking services. Depending solely on religion is not enough to attract a large number of customers. Most importantly, non-Muslim customers who may use Islamic banking services if the services meet their expectations are left behind or lost.


Most importantly, the majority of Islamic Financial Institutions (IFIs) are not focusing on quality-based services and value-adding for customers in the way they meet their customer's expectations and satisfactory services in the arena of the business they render.


Accordingly, extensive studies have shown that at the beginning of full-fledged Islamic banking, deposits can increase rapidly. As a result of various arguments and literature reviews, this is not due to an increase in awareness among Muslim individuals, but rather due to the deposits of Islamic-related institutions such as pilgrimage funds and zakat institutions funds. Additionally, the users of Islamic banking services are mostly corporate clients, not Muslim individuals.


To sum up, to develop a marketing strategy in the areas of Islamic banking, it is important to understand what is allowed and restricted in the shari'ah ruling, which means removing (i.e riba, or interest, usury, gharar, gambling, alcohol, pork, tobacco, unethical activities like pornography related investment, etc.). It is also important to differentiate between the "borrower and the lender", as well as the purely "creditor-debtor" relationship. Furthermore, it is important to be aware of the business nature, particularly entrepreneurs (risk-taking activities), rather than risk transfer or risk selling, not merely financialization but also finance for real finance in line with the productive project. Furthermore, focuses on the fundamental Islamic contract aligned with sale (exchange value), lease/rent services, and value transfer or contributing instruments. An Islamic banking marketing strategy can be developed by relying on customer-based approaches by genuinely understanding their needs, preferences, and behaviors in using media (mainstream and social media properly) and other tools in order to build a sound network in various aspects. Being innovative and benefiting from the technology revolution like digitalization products can be viable instruments to reach our further client and provide their service in the manner of shari'ah principles, accordingly. Last but not least, making genuine decisions based on the real economy is prioritized over pure financialization, developmental, and eco-friendly business activities.

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