Examining financial needs of banking customers for product development in Islamic banking in Indonesia: A Maslahah pyramid approach
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 19 June 2019
Issue publication date: 11 November 2019
Abstract
Purpose
This study aims at product development in Syariah banking, using the theory of Pyramid of Maslahah. Product development are important aspects of Islamic banking to realize Maqasid Al Shariah and to better serve the real economy.
Design/methodology/approach
To understand the needs of the customers, this study uses qualitative approaches and collects primary data from semi-structured interviews of 25 banking customers in Indonesia.
Findings
The study found that the group of respondents who have similar characteristics in age, marital status and number of kids tend to have similar financial needs. Some of the needs that have not been fulfilled by Sharia banking are the needs for investment in banking products, the needs for pension plan products and the needs for travelling-related financial products.
Practical implications
This study proposed that Islamic banking should provide financial products that cater to three needs of the society, including the needs for necessities/essentials (daruriyat), the needs of complementary requirements (hajiyyat) and the needs for beautifications or embellishments (tahsiniyat), to be able to better serve the real economy.
Originality/value
Financial needs and the life cycle approach can be used for product development in banking industry. However, this approach has not been widely used for consideration in the development of Sharia banking products in Indonesia. This study provides some novelty in Islamic banking customer behavior, especially in understanding financial needs based on the theory of Pyramid of Maslahah.
Keywords
Acknowledgements
This research is funded by the Department of Sharia Banking of the Indonesian Financial Services Authority under the Research Fellowship Program 2016.
Citation
Yumna, A. (2019), "Examining financial needs of banking customers for product development in Islamic banking in Indonesia: A Maslahah pyramid approach", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 12 No. 5, pp. 712-726. https://doi.org/10.1108/IMEFM-11-2018-0378
Publisher
:Emerald Publishing Limited
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