Ethnical Banking in Germany and Austria

Only available on StudyMode
  • Download(s): 55
  • Published: July 27, 2013
Read full document
Text Preview
Going International at Home
Ethnical Banking in Austria and Germany

Agenda
•Introduction •Ethnic Banking •Islamic Banking •Austria •The potential of the Austrian market •Lessons Learned from Germany •Primary Research: Results •SWOT •Recommendations •Concluding Remarks Intro Intro Concepts Austria Porter Germany Results Conclusion

Research Question
Is there a market for ethnic and Islamic banking products in Austria and if so, how can Austrian banks tap this market?

Intro Intro

Concepts

Austria

Porter

Germany

Results

Conclusion

Motivation
• Austrian banking sector is saturated • In order to grow, banks need to find unbanked clients • The niche of ethnical banking poses an opportunity for xibanks

Intro Intro

Concepts

Austria

Porter

Germany

Results

Conclusion

Earlier Research
Shanmuganathan (2004): Ethnic Banking in the US
• Target minorities • Economic potential of x minorities • Strategies of banks

Emotion Banking (2006): Islamic Banking in Austria
• Minority Marketing • Minority banking in the US • Islamic minority in Austria • Islamic banking in Europe Porter Germany Results Conclusion

Intro Intro

Concepts

Austria

Earlier Research
Stüblreiter, Isabell (2006) / A. T. Kearney (2007): Islamic Banking in Austria Islamic minority in Austria • Economic potential • Requirements for Islamic banking in Austria • Religious interdictions •

Intro Intro

Concepts

Austria

Porter

Germany

Results

Conclusion

Conclusions
The potential for Islamic banking products in Austria seems limited at this moment. However banks should include ethnic banking solutions such as bilingual branches in their strategy.

Intro Intro

Concepts

Austria

Porter

Germany

Results

Conclusion

Methods & Data
• Primary market research: short email-questionnaire to the main Austrian banks • Secondary market research: academic journals, newspapers, internet and other relevant publications • Porter’s Five Forces / SWOT Analysis

Intro Intro

Concepts

Austria

Porter

Germany

Results

Conclusion

Ethnic Banking
• Common racial, national, religious, linguistic, or cultural xibackground, minorities in multicultural societies

• Banks offer products that cater to specific ethnic groups • Concepts „Domestic Country Bias“ and „Country of xOrigin“ • Islamic banking = subgroup, more complex

Intro

Concepts Concepts

Austria

Porter

Germany

Results

Conclusion

Islamic Banking
• Koran = most important legal source, Allah’s massage
• Sharia is based on the Koran: legal framework that xiregulates public and private life, topics like interest, xiheritage and taxes • Sharia is also valid when closing a financial contract

Intro

Concepts Concepts

Austria

Porter

Germany

Results

Conclusion

Islamic Banking: Religious Interdictions
• Interdiction of Riba - Riba can be translated as interest - The creditor must not ask the debtor for any benefits • Interdiction of Gharar - Interdiction to speculate, to take risks - Protection of the debtor from the creditor Intro Concepts Concepts Austria Porter Germany Results Conclusion

Islamic Banking: Concepts
• Mudarabah - bank provides 100 % of capital, client provides knowxxxhow and work - Potential loss is borne by the bank alone - Despite the high risk the bank must not ask for collateral to cover the credit

Intro

Concepts Concepts

Austria

Porter

Germany

Results

Conclusion

Islamic Banking: Concepts
• Sukuk - Sharia-conform equivalent of bonds • Ijara - Similar to leasing

Intro

Concepts Concepts

Austria

Porter

Germany

Results

Conclusion

Austria
• • • • • Fertility rates in Austria are shrinking Immigration slows down this process 826,000 immigrants live in Austria 85 % come from countries outside the EU Turkey and Yugoslavia represent the largest minority group • Predominant religions of immigrants...
tracking img