Islamic Credit Cards in Pakistan

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Information about Islamic Credit Cards in Pakistan

Published on June 27, 2009

Author: imadbaig

Source: slideshare.net

Scope of Islamic Credit Cards in Pakistan Imad Ahmad Baig Mustafa Shabbir Sana Maqbool Syed Faisal Khursheed Syed Muqaddas Ali

Introduction Islamic Credit Card- Sa’adiq Background of Islamic Credit Card

Islamic Credit Card- Sa’adiq

Background of Islamic Credit Card

Differences between Islamic and Conventional Credit Cards Non- Sharia’h Compliant Money lending Compounding profits No control over transactions/merchants Sharia’h Compliant No money lending None compounding profit Control on transactions Conventional Islamic

Non- Sharia’h Compliant

Money lending

Compounding profits

No control over transactions/merchants

Sharia’h Compliant

No money lending

None compounding profit

Control on transactions

Purpose of Research Objective of Research To identify the level of awareness among the customers To identify what level of perception Islamic credit cards carry amongst Pakistani masses To identify the willingness to own/switch to Islamic Credit Cards Limitations Time Constraints Limited availability of Respondents Authentic prior research in Pakistan

Purpose of Research

Objective of Research

To identify the level of awareness among the customers

To identify what level of perception Islamic credit cards carry amongst Pakistani masses

To identify the willingness to own/switch to Islamic Credit Cards

Limitations

Time Constraints

Limited availability of Respondents

Authentic prior research in Pakistan

Research Methodology Population All bank account holders Sampling Size 200 respondents Geographically Restricted to Karachi Convenience Sampling Techniques

Population

All bank account holders

Sampling Size

200 respondents

Geographically Restricted to Karachi

Convenience Sampling Techniques

Questionnaire adopted from prior study on Islamic Credit Card holders-Nuradli & Abdul Hamid.

Questionnaire adopted from prior study on Islamic Credit Card holders-Nuradli & Abdul Hamid.

Analysis and Findings

Demographics 65% 35% 65% 35%

 

 

Ownership of Credit Card 60% 40%

Type of Credit Card Ownership 42% 44% 10% 3%

Awareness of Islamic Credit Cards

Awareness of Islamic Credit Cards (Age)

Awareness of Islamic Credit Cards (Monthly Income)

Promotion of Conventional vs Islamic Credit Card

Perception of Islamic Credit Card

Perception of Islamic Credit Card (Age)

Perception of Islamic Credit Card (Monthly Income)

Willingness to own Islamic Credit Cards 65% 35%

Willingness to own Islamic Credit Card (Age)

Willingness to own Islamic Credit Card (Monthly Income)

Willingness to Switch from Conventional to Islamic Credit Card 60% 30% 8%

Conclusion Severely low knowledge regarding Islamic credit cards Most of consumers have a negative perception about Islamic Credit Card Majority of people are willing to own/switch

Severely low knowledge regarding Islamic credit cards

Most of consumers have a negative perception about Islamic Credit Card

Majority of people are willing to own/switch

Recommendations Banks should come up with more promotional campaigns Banks should develop a program so as to clear the misconceptions amongst most consumers. This will help improving the perception.

Banks should come up with more promotional campaigns

Banks should develop a program so as to clear the misconceptions amongst most consumers. This will help improving the perception.

Chakravorti and Ted, (1997). “Economic Perspectives: A Review from the Federal Reserve Bank of Chicago”, Research Dept. of the Federal Reserve Bank of Chicago. University of California. Chapra, M. U. (1986). “A discussion of money, banking and monetary policy in the light of Islamic teachings”. Towards a Just Monetary System, pp. 55-56. Leicester: The Islamic Foundation. Ma’sum Billah, M. (2004). “Islamic Credit Card in Practice”. In ICMIF Series of Articles: External papers (Takaful Islamic Finance). International Cooperative and Mutual Insurance Federation, URL: http://www.icmif.org/2k4takaful/site/documents/Islamic%20Credit%20Card.doc (14/03/2009) Wonglimpiyarat, J. (2005). “Innovation Management in a Complex Economic Environment”. Strategies of Competition in the Bank Card Business, pp. 21-25. Brighton: Sussex Academic Press. References

Chakravorti and Ted, (1997). “Economic Perspectives: A Review from the Federal Reserve Bank of Chicago”, Research Dept. of the Federal Reserve Bank of Chicago. University of California.

Chapra, M. U. (1986). “A discussion of money, banking and monetary policy in the light of Islamic teachings”. Towards a Just Monetary System, pp. 55-56. Leicester: The Islamic Foundation.

Ma’sum Billah, M. (2004). “Islamic Credit Card in Practice”. In ICMIF Series of Articles: External papers (Takaful Islamic Finance). International Cooperative and Mutual Insurance Federation, URL: http://www.icmif.org/2k4takaful/site/documents/Islamic%20Credit%20Card.doc (14/03/2009)

Wonglimpiyarat, J. (2005). “Innovation Management in a Complex Economic Environment”. Strategies of Competition in the Bank Card Business, pp. 21-25. Brighton: Sussex Academic Press.

Jazak’ Allah

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