Simulation of the effect of COVID-19 outbreak on the development of branchless banking in Iran: case study of Resalat Qard–al-Hasan Bank

Abstract

PurposeCOVID-19 has become a global challenge with a significant rate of prevalence, and it has exerted devastating consequences in epidemic, economic and social terms. Therefore, a number of studies have already been, or are now being, conducted on the detrimental effects of the virus. In this respect, a question may arise: Is there any possibility to turn the threat of the virus outbreak into an opportunity in some sectors such as the banking industry? In this research, the effects of COVID-19 outbreak as an intervening element on the acceptance of branchless banking were studied.Design/methodology/approachIn this research, the factors affecting the acceptance and development of branchless banking in Iran at the time of COVID-19 outbreak were identified by systematically studying the theoretical framework, conducting further research and interviewing the experts; then, a causal loop diagram of the problem in the proposed case study and the flow rate model were presented.FindingsThe simulation results showed that banking transactions and a bank's financial resources would increase by implementing the package policy of reducing the number of branches, promoting incentive policies and increasing the budget rate of the bank in Information Technology (IT). Further, by promoting customers' acceptance of new technologies, the spread of COVID-19 can be viewed as a positive factor, or even a catalyst, in the acceptance and development of branchless banking in Iran.Originality/valueBased on the proposed model, the difficulties faced by individuals during the spread of COVID-19 could act as justifiable incentives to boost appropriate organizational preparations for making changes to the classic working processes. Processes such as telecommuting, job rotation and so on are among these changes.

Alignment of Islamic Banking Sustainability Indicators with Sustainable Development Goals: Policy Recommendations for Addressing the COVID-19 Pandemic

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“…org/content/undp/en/home/blog/2020/islamic-finance-takes-on-covid-19.html) published in April 2020 highlighted that Islamic sustainability instruments (such as zakat and Qard-e-Hassan) can help nations in preparing for, responding to, and recovering from the pandemic [24]. This provides an opportunity for Islamic banking to help various stakeholders suffering through the pandemic [25]. Against that background, this article aims to identify the key Islamic banking sustainability indicators and align them with the SDGs.…”

The Effect of Covid-19 Pandemic on the Performance of Islamic Bank in Indonesia

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Spillover effect of Covid19 on the Global Economy

“…However, Ozili, & Arun, (2020) claimed that even card payments and FinTech transitions declined during the pandemic. Shahabi et al, (2020) suggested that the outbreak of COVID19 has played a key role in changing the attitude of people towards branchless banking in Iran. Banks has insulated itself from the impact of Covid19 and witnessed an increase in online banking and digital payments amid the pandemic crisis.…”