INTERNATIONAL ISLAM UNIVERSITI MALAYSIAFACULTY OF INFORMATION TECHNOLOGY MANAGEMENT INFORMATION SYSTEM DEPARTMENT Proposal for Ph.D. Research STRATEGIC SERVICES ONLINE FOR ISLAMIC BANKING SECTOR IN LIBYA Proposed by ABDUSALAM ABDULAZEZ ABDULLA ABUAZOUM Passport No: 708214 S
(2012) Strategic services online for Islamic Banking Sector in Libya I.IntroductionIslamic financial services industry (IFSI) has experienced a tremendous growth overthe last four decades. Estimates suggest that global Islamic financial services grew at arate of 10%-15% over the period from 1995 to 2005. It is suggested that IFSI assetswere worth US$700 billion in 2005 and at an annual growth of 15% until 2010, theIFSI could grow to US$1.4 trillion by 2010 and to US$2.8 trillion by 2015 (IFSBwebsite, 2008). The key institution in IFSI is the global pool of Islamic banks. Islamic banks perform similar functions of the conventional banks but carry outsuch functions in accordance with Islamic principles. Islamic banks fundamentallyemerged to fulfill the need of Muslims to enjoy banking products/services inconformity with Islamic principles (grounded in the Holy Quran and the Hadith).However, Islamic mode of banking is gaining popularity among the non-Muslimconsumers around the world (Dusuki & Abdullah, 2007; Knight, 2007). Suchwidening appeal of Islamic finance is evident in the initiative by a number of largeinternational banks and various domestic financial institutions to provide Islamicfinancial services (Hassan & Ahmed, 2001). II.Problem statement:-
Our main research problem is to investigate that what can be suitable and effectivestrategy serves website for Islamic Banking in Libya?The main purpose of our research work is that we want to explore and pinpoint somestrategies serves website issues which can be helpful for new investors and oldstakeholders in the sector of Islamic banking in Libya in order to penetrate in themarket successfully.Strategy service online is one of the most important issues that must be examinedcarefully in order to improve performance and ensure sustainable growth of Islamicbanks as competition in the banking industry intensifies. A suitable online servicestrategy becomes essential as Islamic banks operate in an environment where servicequality and financial returns are supposed as the essential criteria from customer’spoint of view, Along with Islamic banking sector to compete conventional bankswhich have better experience and expertise in banking business. Once religion wasthought the primarily force to drive Muslims to use Islamic banking services, but nowhas become irrelevant to Muslim customers. Due to increased competition from bothIslamic and Conventional banks and changes in customer’s perception, it is ofsupreme importance for Islamic banks to assess the effectiveness of their onlinestrategy. “Every business strategy consists of a strategy service online plus a compatibletechnology strategy and sourcing strategy” (Kotlor 2001). Developing a strategy service online is essential for any business. The focus ofstrategy should be that your services are more attractive than those of your competitorsand develop a long-term and profitable relationship with the customers. A suitablestrategy service online can be developed by understanding internal strengths andweaknesses and the external opportunities and threats. (Business Link, [no date])
III.Objectives: 1. In order to improve performance and ensure sustainable growth of Islamic banks. Strategy service online is one of the most important issues. 2. The objective of our research is to get service from internet from during by Islamic banking that how Islamic banking sector can grow and sustain by keeping in view the threats and opportunities present in the market. Work upon framing a “Strategy for Development of Islamic Financial Services Industry of Libya. 3. The study will focus only on the customer’s perspective in web Based banking services rather than bank’s perspective. As the aim is to provide a better understanding on how online banking service is evolving in Islamic and conventional banks in Libya. 4. Put strategy service from website of Islamic banking Transactions. 5. Capacity building through human resource development. 6. Explain strategy service online for Internal and external relations. 7. The objectives of this study is to provide a better understanding on how online banking service is evolving In Islamic. IV.Reference:-IFSB website. (2008). Islamic financial services industry development: ten-yearframework and strategies. Joint initiative by Islamic.Development Bank (IDB), Islamic Financial Services Board (IFSB), Islamic Research
and Training Institute (IRTI). Downloaded from the following link of IFSB Websiteon January 1, 2008. http://www.ifsb.org/index.php?ch=4&pg=140.Ahmad, A. U. F., & Hassan, M. K. (2007). Regulation and Performance of IslamicBanking in Bangladesh. Thunderbird International Business Review, 49(2), 251–277.Hassan, M. K., & Ahmed, M. (2001). Islamic versus conventional banking: A surveyof their apparent similarities and differences. Working paper. Holliday, K. (1996).Keeping close to the customer. Bank Marketing, 28(6), 14-19.Ahmed, E., Rahman, Z., & Ahmed, R. I. (2006). Comparative analysis of loanrecovery among nationalized, private, and Islamic commercial banks of Bangladesh.BRAC University Journal, III(1), 35.Strategic Plan For Islamic Banking Industry In Pakistan”http://www.islamibankbd.com/ (18-2-2012)Muhammad Tahir. Muhammad Umar. Mr. Ian Roboson. JUNE (2008) “MarketingStrategy for Islamic Banking Sector in Pakistan”.Business Link, [no date], Create your Marketing Strategy, Available at:http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073861169&r.l3=1073900352&topicId=1073900352&r.t=RESOURCES&r.i=1075306040&r.l2=1073858842&r.s=m 62Kotler, P. (2001), Marketing Management Millennium edition, Prentice-Hall, p.30.Ahmed, E., Rahman, Z., & Ahmed, R. I. (2006). Comparative analysis of loanrecovery among nationalized, private, and Islamic commercial banks of Bangladesh.BRAC University Journal, III (1), 35.Qadar Bakhsh Baloach, M. Imran Khan, and Adnan Alam (no date) Online BankingServices: A Comparative Study of Islamic and ConventionalDUSUKI, W.A. & ABDULLAH, I.N. (2007). Why do Malaysian customers patronizeIslamic banks? International Journal of Bank Marketing, 25(3):142-160.