Shariah board, web-based information and branding of Islamic financial institutions

Abstract

Purpose With the advent of technology and internet banking, the role and value of bank’s websites have increased. Additionally, the Islamic banking boom has also increased the role of Shariah-based banking in the market. But neither web-based information nor Shariah board members have been investigated for their possible effects on the branding of Islamic banks. Against this backdrop, this study aims to explore web-based information and Shariah board as a source of branding of Islamic financial institutions (IFIs). Design/methodology/approach An interpretivism-based thematic inquiry is carried out through semi-structured interviews of 22 customers of Islamic banks. Findings The findings of the study highlighted the fact that customers’ perceived web-based information is in line with the Shariah objectives but showed low level of trust on that information. They assumed that the practices are not consistent with this information. Moreover, the Shariah board members were considered as brand ambassadors, and customers valued board members more than the Shariah board and Islamic bank itself. Findings further highlight the more knowledge customers have about the Shariah board members (experience, qualification, achievements, etc.) the greater is the impact on the branding of the IFIs. Originality/value This study offers a novel perspective by considering the value of web-based information and Shariah board on branding of Islamic banks. As there is no such study available in literature, up to the best of researchers' knowledge, the qualitative inquiry may suffice the study objectives and research questions.

Can the characteristics of the sharia supervisory board increase the trust of sharia bank customers?

“…However, the results of this test are contradictory to the research by Farook et al (2011) and Rahman and Bukair (2013) which stated that the result of the concurrent position of the SSB was good supervisory performance and improved information connection in financial business practices. This finding also does not support the opinion of Ahmed et al (2021) which states that the more knowledge customers have about Sharia board members in terms of work experience, qualifications, achievements, the more positive impact they will have on the branding of Sharia banks.…”

“…This implies the need for Islamic banks to have SSB members with a doctoral education background. It is supported by Ahmed et al (2021) who believes that information and knowledge possessed by customers regarding qualifications and achievements including SSB education qualifications will improve the branding of Islamic banks.…”

“…Information received by the public regarding Sharia bank SSB will improve the image of Islamic bank religious branding. As stated by Ahmed et al (2021) that the wider information and knowledge of customers about SSB members from various aspects (work experience, skill qualifications, educational qualifications, achievements, and others) will broaden the influence and branding of Islamic banks.…”

“…In addition, the position of SSB as part of the primary stakeholder also has the power to increase the positive image of the company or vice versa; it can significantly worsen the company's branding (Wicaksono et al, 2021). In addition, SSB members are considered brand ambassadors, customers value SSB members personally more than Islamic banks themselves (Ahmed et al, 2021).…”

“…This is in accordance with the statement by Rahman and Bukair (2013) that the multi-position SSB can be a source of information connection in financial business practices. Ahmed et al (2021) added that the amount of information and knowledge possessed by Islamic bank customers regarding work experience, qualifications, and achievements of SSB members will have a major influence on the branding of Islamic banks. Based on the discussion above, it can be concluded that in general, the number of SSB members has a positive effect on the level of trust of Islamic bank customers.…”