COVID-19 and Islamic Banking Services: Digitalisation as a Post-Crisis Solution (Case of Morocco)

  • OUMNIYA AMRANI CIRPEC, LARCEPEM Laboratory, Faculty of Legal, Economic and Social Sciences, Souissi, Mohamed V University, Rabat, Morocco.
  • Amal Najab CIRPEC, LARCEPEM Laboratory, Faculty of Legal, Economic and Social Sciences, Souissi, Mohamed V University, Rabat, Morocco.
DOI: https://doi.org/10.13135/2421-2172/4913
Keywords: electronic Business Model, digital transformation, participatory banking services, expectations of Moroccan citizens, opinion survey

Abstract

Movement restrictions and the resulting social distancing, as measures to flatten the curve of the spread of coronavirus disease 2019 (COVID-19), highlighted 'electronic business models' (e-BM) as well as the importance of digital transformation of banking services. This article aims to empirically explore the new business opportunities offered by the digitalization of Islamic banking services as a solution to revitalize post-COVID-19 activity and overcome the difficulties of the period. The article presents the results of an opinion survey conducted among Moroccan citizens to collect and analyze their perceptions and expectations about the digital transformation of participatory banking services. This is the first exploratory study in Morocco focused on customer’s expectations regarding the digitalization of participatory banking services. The results of the survey highlighted a significant interest from customers and prospects for digital transformation of the services offered by the actors of this new banking industry, in particular through mobile banking application. However, there is still a part that prefers traditional on-site banking services .Furthermore, digital transformation also presents some risks such as cyber security and issues of non-compliance with banking regulations relating to opening a bank account remotely. To manage these risks and reshape their BM, it is recommended that participatory banking institutions set up an integrated digital strategy, improve their internal processes and equip themselves with a robust, interactive and locked information system.

References

[1] IMF, “The IMF says its forecast for the COVID-19 recession might now be too optimistic,”[Online].Available:
https://www.weforum.org/agenda/2020/04/imf-economy-coronavirus-covid-19-recession/ [Accessed: 10-May-2020].
[2] IFSB, “Regulatory measures to mitigate the impact of COVID-19 for Institutions Offering Islamic Financial Services (IIFS),” [Online]. Available: https://www.ifsb.org/preess_full.php?id=530&submit=more[Accessed: 10-May-2020].
[3] O. Amrani and A. Najab, “Morocco’s Participatory Banking Sector: A Cross-Analysis of Current State, Opportunities and Challenges of Its Five Banks and Three Windows,” International Journal of Islamic Business & Management, vol. 4 (2), pp. 8-19, 2020.
[4] WHO, “ITU-WHO Joint Statement: Unleashing information technology to defeat COVID-19,” [Online]. Available:https://www.who.int/news-room/detail/20-04-2020-itu-who-joint-statement-unleashing-information-technology-to-defeat-covid-19[Accessed: 30-June-2020].
[5] R. Desmarteau and A. L. Saives, “Opérationnaliser une définition systémique et dynamique du concept de modèle d’affaires : cas des entreprises de biotechnologie au Québec,” Actes de la XVIIe conférence internationale de l’AIMS, Nice, France, (May), pp. 28-31, 2008.
[6] T. Verstraete, F. Krémer, and E. J. Laffitte, “Le business model : une théorie pour des pratiques,” Entreprendre Innover, vol. 13 (1), pp. 7 26, 2012.
[7] D. E. Fielt, “Conceptualising Business Models : Definitions, Frameworks and Classifications,” Journal of business models, vol.1(21), 2013.
[8] J. Arlotto, J.M. Sahut, and F. Teulon, “Le concept de Business Model au travers de la littérature, ” Gestion 2000, vol. 28 (4), pp- 33 47, 2011.
[9] T. Loilier and A. Tellier, “Que faire du modèle de l’innovation ouverte ?,” Revue française de gestion, vol. 210(1), pp. 69 85, 2011.
[10] P. Weill and S. L. Woerner, “Optimizing Your Digital Business Model,” MITSloan Management Review, vol. 54 (3), 2013.
[11] G. McLean and A. Wilson, “Evolving the online customer experience … is there a role for online customer support?,”Computers in Human Behavior, (60), pp. 602‑610, 2016.
[12] S. Chevalet and Y. Coutaz, “Nous entrons dans l'ère de l'hyperusage !,” L'Expansion Management Review, vol. 154(3), pp. 68-73, 2014.
[13] S. Drissi, and K. Angade, “Islamic financial intermediation the emergence of a new model,” European Journal of Islamic Finance, (12), 2019.
[14] B. Grall, “Les progiciels CRM : entre connaissance client et contrôle – Des changements de pratiques variés et inattendus, ” Comptabilité - Contrôle - Audit, vol. 22 (3), pp. 81-109, 2016.
[15] T. H. Davenport, P. Barth, and R. Bean, “How Big Data Is Different ?,” Magazine Fall, (July), 2012. [Online]. Available: http://sloanreview.mit.edu/article/how-big-datais-different/[Accessed: 15-June-2020].
[16] J. M. Sahut, “Vers une révolution du secteur bancaire,” La Revue du Financier, (131), pp. 34-38, 2001.
[17] E. I. Apăvăloaie, “The Impact of the Internet on the Business Environment,” Procedia Economics and Finance, (15), pp. 951‑958, 2014.
[18] P. Abedifar, P. Molyneux, and A. Tarazi, “Risk in Islamic Banking. Review of Finance,” vol. 17 (6), pp. 2035‑2096, 2013.
[19] J. Drahokoupil, and M. Jepsen, “The Digital Economy and Its Implications for Labour : 1. The Platform Economy,” European Review of Labour and Research, vol. 23(2), pp. 103–119, 2017.
[20] F. Khanboubi, A. Boulmakoul, and M. Tabaa, “Impact of digital trends using IoT on banking processes,” Procedia Computer Science, (151), pp. 77 84, 2019.
[21] M. Aaras and A. Nicolosi, “La digitalisation du secteur bancaire : La perception par les clients,” 23. Conference paper, International Marketing Trends Conférence, Paris, France, 2020.
[22] ITU, “Internet usage keeps growing, but barriers lie ahead,” [Online]. Available:https://itu.foleon.com/itu/measuring-digital-development/internet-use/d[Accessed: 10-May-2020].
[23] B. Lavayssière, “Les modèles économiques bouleversés par le digital,” Revue d'économie financière, (120), pp.57-66, 2015.
[24] P. P. Biancone, S. Secinaro, and M. Kamal, “Crowdfunding and Fintech : Business model sharia compliant,” European Journal of Islamic Finance, (12), 2019.
[25] K. B. Cyree, N. Delcoure, and R. Dickens, “An examination of the performance and prospects for the future of Internet-primary banks,” Journal of Economics and Finance, 2008.
[26] V. T. Simon and A. S. R. Thomas,“Effect of electronic banking on customer satisfaction in selected commercial banks, Kenya,” International Academic Journal of Human Resource and Business Administration, vol. 2 (2), pp. 41-63, 2016.
[27] Valuates Reports, “Digital banking market overview,” [Online]. Available:https://reports.valuates.com/market-reports/QYRE-Auto-4N473/global-digital-banking-market-size-status-and-forecast-2019-2025[Accessed: 30-Jul-2020].
[28] Deloitte Digital, “Digital Banking Benchmark – Improving the digital performance,” 2017.
[29] Moneythor,“Digital Banking 101”, 2020. [Online]. Available: https://www.moneythor.com/2020/07/30/digital-banking-101/[Accessed: 30-Jul-2020].
[30] O. Amrani and A . Najab, “L’évolution de la gouvernance bancaire : d’une approche classique vers une approche fondée
sur la charia (revue de littérature),” Revue du Contrôle de la Comptabilité et de l’Audit, vol.4(3), pp. 822 847, 2020.
[31] P.P.Biancone and M. Radwan, “Social Finance and Unconventional FinancingAlternatives: An Overview,”European Journal of Islamic Finance, (10), 2018.
[32] B. Thorsten, A. Demirgüç-Kunt, and O. Merrouche, “Islamic vs. Conventional Banking: Business Model, Efficiency and Stability,” Policy Research Working Papers, The World Bank, 2010.
[33] H. Orhan, “Business model of Islamic banks in Turkey,” Journal of Islamic Accounting and Business Research, vol. 9 (3), pp. 290 307, 2018.
[34] D. Muljawan, H. Dar, and M. Hall, “A capital adequacy framework for Islamic banks : The need to reconcile depositors’ risk aversion with managers’ risk taking ,” Applied Financial Economics, vol. 14(6), pp. 429 441, 2004.
[35] Rapport 2018—Banques | Transformers Awards. [Online]. Available: https://www.transformersawards.com/rapport2018 [Accessed: 30-June-2020].
[36] CIBAFI, “Beyond Digitalization: Fintech and Customer Experience,” Global Islamic bankers’ Survey, 2020.
[37] N. Babel, “Moroccan Retail Banks Digitalization Ranking,”D-Rating, 2018. [Online]. Available: https://www.d-rating.com/post/digital-morocco-banks[Accessed: 13-Jul-2020].
[38] A. Echchabi, “Online banking prospects in Morocco: An extension of Technology Acceptance Model,” Journal of Internet Banking and Commerce, Vol. 16 (3), pp.1-13, 2011.
[39] A. Echchabi, “E-BankingAcceptance in Thailand: An Emphasis on Islamic Banks' Customers,”European Journal of Islamic Finance,(9), pp.1-4, 2018.
[40] BAM, “De nouvelles dispositions pour les comptes à distance,” [Online]. Available: https://www.boursenews.ma/article/maroc/bam-de-nouvelles-dispositions-pour-les-comptes-a-distance[Accessed: 17-May-2020].
Published
2020-12-31
How to Cite
AMRANI, O., & Najab, A. (2020). COVID-19 and Islamic Banking Services: Digitalisation as a Post-Crisis Solution (Case of Morocco). European Journal of Islamic Finance, (16). https://doi.org/10.13135/2421-2172/4913
Issue
No. 16 (2020): "Islamic Finance Role in the Time of COVID -19 Pandemic: The Way Out during and after Emergency"
Section
Articoli

Copyright (c) 2020 OUMNIYA AMRANI, Amal Najab

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors keep the copyrights for their work and give the journal the work's first publication copyright, which is at the same time licensed under a Creative Commons License – Attribution, which in turn allows other parties to share the work with an acknowledgement of the work's authorship and initial publication in this journal.