4.5 swot analysis
A Shariah compliant banking institution.
Wide variety of financial services offered to the customer.
Using Musharakah Mutanaqisah model that could be easily implemented for various financing purposes including home financing.
A new bank that have a small customer base compared to other established banks. Much of the banking operations are focused in Malaysia hence limited global penetration. Musharakah Mutanaqisah was relatively new hence it is rather unknown to the public compared to Islamic finance such as BBA.
Have a high opportunity to increase and widen the customer base because of the strong growth of Islamic finance in Malaysia. Growth in Internet banking will increase the opportunity of Nasru bank to increase their customer base. Although Musharikah Mutanaqisah relatively new to the market but it started to gain popularity and with the right implementation, it will be a huge success.
Financial crisis such as bank run.
Nasru bank have a strong competitors from other established banks such as bank Islam, bank mualamat, cimb bank that offering Islamic banking. The safety issue of online banking such as hacking and phishing. 4.6 problem statement
For the home financing product, bank Islam offered two home financing products, which are Property Financing-i (Tawarruq) - Baiti Home Financing Property Financing-i (Tawarruq) – Wahdah Home Refinancing. The Shariah concept applicable for both financial products is Tawarruq. The issues facing both home financing products are the shariah concept itself that is tawarruq. Although it is widely used form of liquidity management instrument to date, Tawarruq is a debate issue among the scholars and there many issues surround it. Rohmatul,Fathia and Sarni (2011) described that Tawarruq nullifies the aims of Islamic Banking in many ways such as Tawarruq imitates the riba-based banks in offering financing hence it creates confusion between Islamic and riba-based banks. More over, Tawarruq negates the efforts to encourage Islamic banks to offer financing in the form of investments via Musharakah (partnerships),mudaarabah (profit sharing),and so on. In order to avoid such issues, Nasru bank have been taking a stance to use an alternative Islamic home financing model by using Musharakah Mutanaqisah.
City folk’s -most of our customer is from the city or town that are developing rapidly. Many houses are build in order to cater the need of the city folk hence make our home financing MM a favourite especially when the housing price skyrocketed . The stable condition high speed Internet that can be achieved everywhere in the city, has help a lot in the development of financial product such as the use of Internet banking .
Rural folks – we have less customer in rural area because of there is relatively less development of houses in the rural area compared to the city area . The cheaper housing price in the rural area also one of the reason why lesser rural folk apply for home financing from bank .
Top income group – consist of 20% of the country .Top income group is defined is defined as household that earn above RM7,000. Middle-income group- consists of 40% of the country. Middle-income group is defined as household that earn between RM3,000 and RM7,000. Bottom income group- consists of 40% of the country . Bottom income group is defined as household that earn below rm3,000.
Young adult - in the range of 20 years old to 40 years old. During this time they eventually will started to think the importance of having a home. Likely to be financial stretched at this point in time because of several causes such as having a child.. Their period of loan will be longer compared to the middle adulthood and old age people because of the age factor
Middle adulthood –in the range...
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