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Next Generation Online Islamic Banking Portals

Next Generation Online Islamic Banking Portals

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Published by Infosys
This white paper discusses the online Islamic banking portals and the 10 incremental innovations to redefine online Islamic banking
This white paper discusses the online Islamic banking portals and the 10 incremental innovations to redefine online Islamic banking

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Published by: Infosys on Sep 13, 2013
Copyright:Attribution Non-commercial


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Next generation online Islamic
banking portals
Thought Paper 
Universal Banking Solution | Systems Integration | Consulting | Business Process Outsourcing
Next generation online Islamic banking portals
Islamic Banking is set for a steady growth, with
global assets expected to cross $2 trillion by
2015. Research suggests that half of the global
population that follows Islam would opt for 
Islamic finance, if Islamic Banks offer advanced
and innovative services as provided by
conventional banking services.
The state of online Islamic banking today
Conventional banks have heavily invested on
digital channels which has transformed the way
they offer banking services to their customers.
They have reached a state where customers
are able to do financial and non-financial
transactions online, wherever they are, thanks
to internet banking and mobile banking. Digital
consumers prefer doing their own research
before taking a decision on the best suited
product or service offered by their banks. They
can interact or set up a meeting with their 
relationship managers online, through unified
communications technology.
Very few Islamic banks are offering customer 
service through digital channels. Majority of 
the customers still seem to prefer the brick and
mortar structure than any other channels.
While basic services like account inquiry and
transfers are offered online, interactive and
advanced services are yet to be offered through
online channels. Research however shows that
online Islamic banking is poised to take a big
leap forward in the coming years.
10 incremental innovations to redefine
online Islamic banking
While research indicates that there is a huge
market for Islamic Banks, it is necessary that
they embrace digital channels too to attract and
retain their customers. Internet browsing speed
is improving day by day. Newer devices and
gadgets are being launched every day. And the
tech savvy digital consumer is ever ready to
adopt anything that makes life easier. The time
is just right to tap these technological advances
and fulfill the ever increasing needs of the
digital generation.
Let us explore 10 incremental innovations that
would define the next generation online Islamic
banking portals and provide a differentiated
customer experience to increase loyalty and
customer satisfaction index. Many of these steps
have been tried and tested in conventional
banking and have proved to be successful in
delighting customers. They would definitely
bring in similar benefits when implemented in
Islamic Banking as well.
1. Multi-channel banking
Banks and financial
institutions offering Islamic banking have to
open up more touch points to customers.
Let the customer bank anytime and
anywhere, with any electronic device they
be it desktop, laptop, tablet, mobile
phone, television or even their play station.
Thought Paper 
Transaction volumes are bound to increase
with increasing ease of access to banking
services. Funds transfers, payments, bill
payments, inquiries and service requests can
be initiated online, without having to go
to a branch. Customer origination, account
origination and verification procedures can
also be initiated through online channels
and can be completed through call center 
or branches. Conventional bank branches
improvements by launching online channels.
Branch staff can divert their attention to
other critical tasks, which mandatorily needs
human intervention.
2. Product catalogues
Share products and
services related information online. Let
customers know when their bank offers new
products, along with product details. Allow
them to select products they are interested
in and analyze them before deciding the
best option suited to their needs. Making
information accessible, along with rich
graphical user experience, goes a long way in
enticing customers.
3. Customer acquisition - Many banks in
advanced countries have already made a
move towards online account opening and
customer acquisition. Prospects can view the
products online, and apply for products by
providing necessary identification documents.
The entire process, including application
filing, identity and address verification,
signature capture and creating new account,
can be accomplished online. Business rules
can be set to have the entire process
automated as well. Islamic Banking can also
adopt these techniques to initiate customer 
acquisition and account opening and
online. These steps help banks in increasing
customer base and also increase the
productivity of bank employees.
4. Remote deposits
Allow customers to upload
scanned images or photo images of checks
taken using mobile camera, with certain
specific image quality, instead of walking up
to the ATM or Branch for depositing their 
checks. Remote deposits have already taken
off in advanced markets, enabling easier 
realization of money once the check is
deposited. Advanced image recognition
technologies can enhance the image quality
of the check as per the specifications, thereby
reducingimage quality based rejections.
 Adequate fraud detection and prevention
technologies are available as well to reduce
online check image related frauds.
5. Family banking
Let your customers manage
accounts belonging to their family members
through online banking. Parents could be
allowed full control of their 
including inquires and transactions. Parents
could also set transaction limits or even
restrict payments to online shopping sites
through their 
account. Personal finance
management can be extended to plan
a monthly budget, and they could even
monitor the spend patterns of their kids.
While kids get to plan their finances, it gives
greater control to parents as well.
6. Web 2.0 & social media - The digital consumers
would like to interact with their friends
and seek their opinion on products. They
might also want to share their banking
experiences which might be useful to others.
Such information and recommendations act
as indirect marketing for banks. Banks can
leverage social media for viral marketing and
increase their reach. While making secure
banking services available through social
media portals, banks also need to ensure that
necessary safety measures are put in place for 
protecting the privacy of customers.
7. Financial planning tools
Visual representation
of calculations are always appealing to
customers. How about showing a graphical
comparison of financing with different
options, so that the customer can make an
easy decision, instead of showing a table with
data comparing the products? How about
a product comparison chart showing the
attributes and benefits of different products?
 A variety of tools including charts and
graphical illustrations can be used to explain
the products, through internet banking and
mobile banking. These tools can be designed
Thought Paper 

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