Journal of Contemporary Business and Islamic Finance (JCBIF)

Relationship Marketing and Quality of Service Delivery in Banking Sector: Empirical Evidence from Fidelity Bank Plc, Lagos, Nigeria

Yusuf Ismaila Mustapha, Abdulazeez Olamide AbdulQuadri — Mon, 01 Jul 2024 00:00:00 +0000

The intensity of competition in today’s business environment has challenged the adequacy of the traditional marketing orientation to deliver expected service quality that results in customers’ satisfaction; hence, there is need for a shift from the traditional marketing philosophies, which are characterized by intense competition and conflict to modern marketing philosophy which ensures a mutual, profitable and sustainable relationship. The focus of this research is to ascertain the impact of staff competence and effective communication on quality of service (responsiveness, reliability, and empathy) delivered by Fidelity Bank Plc, Lagos State. A survey design was utilized to retrieved data from a sample size of one hundred and eleven (111) staff of Fidelity Bank Plc Apapa Region, Lagos state, and this was collected through questionnaire administered using convenience sampling technique. The study employed descriptive statistics, regression analysis, and ANOVA to examine the hypotheses. The results indicated a positive correlation between staff competence, effective communication, and the quality of service provided to customers (including responsiveness, reliability, and empathy) at Fidelity Bank Plc in the Apapa Region of Lagos State. Consequently, it was concluded that relationship marketing substantially influences the delivery of quality service within the banking sector.

A Comparative Study Between insurance and banking sector about influence of key HR practices in boosting service recovery performance

Farhan Hussain, Nazneen Waseem — Mon, 01 Jul 2024 00:00:00 +0000

The purpose of this study is to examine key human resources practices (Rewards, Training, Job Description, intellectual capital, Staff Participation, Internal career opportunities) that influence employee commitment and service recovery performance (SRP) of banking and insurance sector of Karachi region. SRP is crucial in banking sector especially in the Islamic Insurance banking sector and plays a vital and key role in sustainable competitive advantage for value addition in future to acquire market. The data was collected from 250 employees of banking and insurance sector working in Karachi on convenience sampling technique. Data was analyzed by using SMART PLS to examine the relationship between constructs. This study contributed to the body of knowledge in explaining relationship of Rewards, Training, Job Description, intellectual capital, Staff Participation, Internal career opportunities to employee commitment and SRP, explained in the Banking and insurance sector specially in Karachi.

Financial Performance and Credit Risk in the Islamic Banking Sector in Pakistan: A Panel Model Method

Mon, 01 Jul 2024 00:00:00 +0000

This study aims to assess the financial performance of the Islamic banking sector in Pakistan by analyzing the impact of credit risk over a ten-year period (2012–2022) using a panel model approach. The study utilizes data from annual reports and records of five selected Islamic banks, combining cross-sectional and time-series data. Panel data regression analysis is employed to examine the relationship between credit risk indicators (credit risk default, non-performing loans, credit spread risk, and classified loans) and the dependent variable, return on assets (ROA). The study finds significant and positive impacts (p < 0.005) of credit risk default and non-performing loans on ROA, indicating that increases in these credit risks negatively affect profitability. The findings underscore the importance of effective credit risk management in enhancing financial performance in Islamic banking. Limitations include the availability and accuracy of data from the selected banks. Future research could expand the dataset and consider additional variables to further refine the analysis. The study suggests that Islamic banks in Pakistan should strengthen their credit analysis capabilities and improve organizational structures to mitigate credit risks and enhance profitability. Effective risk management practices in Islamic banks can contribute to financial stability and resilience in the economy, benefiting stakeholders and society at large. This study contributes to the literature by applying a panel model method to examine credit risk impacts on financial performance specifically within the context of Islamic banking in Pakistan.

A Digital Business Innovation and Financial Inclusion: Panacea to Nigeria's Economic Growth

Mustapha Williams, Lawal Abdulazeez Abioye — Mon, 01 Jul 2024 00:00:00 +0000

An emphasis on inclusive development via conventional financial inclusion and digital innovation is evident globally. Contemporary business innovations are driven by digitalization. This paper explores the effects of financial inclusion and digital business innovations on Nigeria's economic growth. It tracks the evolution of financial inclusion from banking sector recapitalization through the Maya Declaration's implementation and the regulation of M-payments to the licensing of Mobile Network Operators (MNOs). The article describes digital business innovation (DBI) facilitated by Information and Communication Technology (ICT) as well as Artificial Intelligence (AI) as a strategy that will raise the quality of life for those at the base of the development pyramid. The effectiveness of Digital Banking Inclusion (DBI) in Nigeria faces challenges, including the presence of individuals without traditional bank accounts, the uneven distribution of digital technology and higher incomes in cities, barriers that hinder fair competition, the use of a single regulatory approach that may not fit all situations, a shortage of affordable, high-quality digital connections, and conflicts of interest between DBI service providers and DBI users. The study suggests speeding up the development of financial infrastructure, application of digital technologies, and modifying the regulatory framework to fit various contexts.

Impact of Islamic and conventional microfinance on poverty alleviation: A qualitative analysis

Muhammad Asif Nadeem, TH Van Hoang — Mon, 01 Jul 2024 00:00:00 +0000

This study attempts to analyze the influence of Islamic and conventional microfinance on poverty alleviation in Pakistan. This study adopts a qualitative approach of investigation. It conducts 16 in-depth interviews with Islamic and conventional microfinance clients to evaluate the influence of microfinance on poverty alleviation. The study results reveal that Islamic microfinance significantly contribute towards poverty alleviation as compared to conventional microfinance. Further, it has identified some important factors like entrepreneurship, social capital, awareness, education, religiosity, and empowerment that may help to enhance the influence of microfinance towards poverty alleviation. This research may help microfinance researchers, governments, practitioners, and rating agencies to focus on suggested factors that may affect the connection between microfinance and poverty alleviation. This study may help to understand the poor living conditions and financial difficulties of microfinance clients and may help the social organizations to devise strategies to serve them in a better way to overcome their financial challenges as well as to cope with their family issues. To the best of our knowledge, this will be the first study showing a qualitative analysis related to the impact of both Islamic and conventional microfinance on poverty alleviation.