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

Abstract

Purpose: Financial inclusion to the Low Income Group (LIG) of the society is based on the understanding of 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.

Research Design/Methodology: Case study approach is used for analysis. Personal interviews were conducted with bank officials, the beneficiary organization’s management, and the actual beneficiary of the product.  Key product documents were also analysed. The main research questions of the study are: how 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 existing Murabaha product was modified for making the process easy and by minimizing the risks. The benefits for the bank are: minimized risk, reduced operational cost, improved profitability, and 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 of the product from other organizations is also found.

Originality Value: 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.