How Customer-Centricity Approach Creates a Win-win Situation? An Analysis of Murabah ¯ . ah Product

Jamil Anwar, Abdus Sattar Abbasi, Majid Jamal Khan
Published Online: June 2021

Purpose: Financial inclusion, through the provision of financial products and services, for the Low Income Group (LIG) of the society is critical. The purpose of this study is to investigate how customer-centric mur¯abah. ah product created a win-win situation for all stakeholders. Methodology: A case study approach using personal interviews and analysing ke documents was used for in depth analysis. The main research questions of the study 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? Findings: 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. Significance: The in-depth investigation of a 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. Limitations: Generalization may not truly reflect the findings of this study as only one product and one bank is studied in this research. Practical and Social Implications: Uplifting the LIG status without loosing their self respect can attract more Islamic Financial Institutions to work for this social cause. KAUJIE Classification: K1, K6 JEL Classification: M10, M6


Islamic Finance, Mur¯abah.ah, Financial Inclusion, Low Income Group ,Customer Centricity