How Customer-Centricity Approach Creates a Win-win Situation: An Analysis of Murabaha Product

Dr. Jamil Anwar, Dr. Abdus Sattar Abbasi, Dr. Majid Jamal Khan
Online First

Financial inclusion to the Low Income Group (LIG) of society is based on understanding how value to their life is added through the accessibility of financial products and services. This study investigates how customer-centric Murabaha product created a win-win situation for all stakeholders. A case study approach is used for analysis. Personal interviews were conducted with bank officials, the beneficiary organization’s management, and the product's actual beneficiary. Key product documents were also analysed. The study's main research questions are: how the customer-centricity approach leads to a win-win situation for an Islamic Financial Institution (IFI) and the beneficiary LIG employees and their employer? And how operational and default risks can be minimized by modifying the existing product? The results suggest that IFIs can benefit from modifying the existing products according to the needs of the customers. The benefits for the bank are minimized risk, reduced operational cost, improved profitability, and a sound banker-customer relationship. The employees are happy with social up-gradation, time-saving, and owned transportation facility. Organizational productivity is improved because of employees’ loyalty and satisfaction. More demand for the product from other organizations is also found. The in-depth investigation of a modified product through a case study research based on the personal interviews from bank officials, employer, and the beneficiary of the products (employees) is a unique feature of the research.


Islamic Finance, Murabaha, Financial Inclusion, Low Income Group, Customer Centricity