A Shari compliant banking institution. Wide variety of financial services offered to the customer. Using Muskrat Mutandis model that could be easily implemented for various financing purposes including home financing. Weakness A new bank that have a small customer base compared to other established banks. Much of the banking operations are focused in Malaysia hence limited global penetration. Muskrat Mutandis was relatively new hence it is rather unknown to the public compared to Islamic finance such as ABA. Opportunity
Have a high opportunity to increase and widen the customer base because of the strong growth of Islamic finance in Malaysia. Growth in Internet banking will increase the opportunity of Nassau bank to increase their customer base. Although Muskrat Mutandis relatively new to the market but it started to gain popularity and with the right implementation, it will be a huge success. Threat Financial crisis such as bank run. Nassau bank have a strong competitors from other established banks such as bank Islam, bank mulatto, comb bank that offering Islamic banking.
The safety issue of inline banking such as hacking and pushing. 4. 6 problem statement Bank Islam For the home financing product, bank Islam offered two home financing products, which are Property Financing-I (Thwarter) – Bait Home Financing Property Financing-I (Thwarter) – Howdah Home Refinancing. The Shari concept applicable for both financial products is Thwarter. The issues facing both home financing products are the Shari concept itself that is thwarter. Although it is widely used form of liquidity management instrument to date, Thwarter is a debate issue among the scholars and there many issues surround it.
Roommate,Faith and Sarnia (2011) described that Thwarter nullifies the aims of Islamic Banking in many ways such as Thwarter imitates the rib-based banks in offering financing hence it creates confusion between Islamic and rib-based banks. More over, Thwarter negates the efforts to encourage Islamic banks to offer financing in the form of investments via Muskrat (partnerships),Madagascar (profit sharing),and so on. In order to avoid such issues, Nassau bank have been taking a stance to use an alternative Islamic home financing model by using Muskrat Mutandis. 4. 10 Segmentation
Geographic location City folks -most of our customer is from the city or town that are developing rapidly. Many houses are build in order to cater the need of the city folk hence make our home financing MM a favorite especially when the housing price skyrocketed . The stable condition high speed Internet that can be achieved everywhere in the city, has help a lot in the development of financial product such as the use of Internet banking . Rural folks – we have less customer in rural area because of there is relatively less development of houses in the rural area compared to the city area .
The cheaper housing price in the rural area also one of the reason why lesser rural folk apply for home financing from bank . Socio-economic Top income group – consist of 20% of the country . Top income group is defined is defined as household that earn above RMI,OHO. Middle-income group- consists of 40% of the country. Middle-income group is defined as household that earn between RMI,OHO and RMI,OHO. Bottom income group- consists of 40% of the country . Bottom income group is defined as household that earn below RMI,OHO.
Demographic Young adult- in the range of 20 years old to 40 years old. During this time they eventually will started to think the importance of having a home. Likely to be financial stretched at this point in time because of several causes such as having a child.. Their period of loan will be longer compared to the middle adulthood and old age people because of the age factor Middle adulthood -in the range of 41 years old to 64 years old. At this time, their financial position much stable improved compared to the young adult . Their expenditure increasing with the growth of the family .
With their income started to o well hence making them interested to subscribe the financial product offered because at this time they will seriously consider of having their own house means no need to rent a house. They tend to make family-centric financial decisions. Old age- a person is 65 years old or older . At this time of age, their financial position much improved and expenditure will focused on health and medical products. This group will concerned about their retirement and the retirement needs under-served by existing asset allocation.
Their period of loan will be shorter because of the age actor. Religion Muslim- 60% of the population in Malaysia. There are two type of the Muslim. One that is concerned about the permissibility of their home financing means their home financing must be according to Shari and the other type doesn’t care as long they get their home financing from banks. With the right strategy of marketing, Nassau bank can get more customer base from the Muslim population . Non-Muslim – 40% of the population in Malaysia. Recently Islamic banking started to grow among non-Muslim .
They did not care about rib’ as long the interest is not too high. The risk sharing involved in the Islamic financial product has attract their intention to invest in Islamic banking. With the right marketing strategy ,the population of non-Muslim investing in Islamic banking will be increase . 4. 10 Market targeting We are targeting a customer from 25 years to 55 years of age to subscribe our Shari compliant home financing product. People will have a lot of commitment to commit such as having a family and that will cost a lot of expenditure .
Nassau bank have put our focus into the middle income group as main target customer because it s noted that middle-income households tend to have more housing loans than low- income households, which are made up of another 40% of the country population. This is because at the end of the month they did not have excess of their salary left to buy a house due to high cost of living especially in the city thus its hard to buy a house without having a loan with bank, so Nassau bank come in help to finance their dream house using an Islamic home financing model that is Muskrat Mutandis.
Nassau bank put Muslim as target customer because of the religion obligation towards rib’ free home financing product. We also give our best attention to the Non Muslim especially when our home financing model that is Muskrat Mutandis using a risk sharing unlike the conventional banking. Nassau bank targeting most of our customer is from developed area such as in the city as there are many houses built there in order to cater the needs of people. More houses built means more people are looking to subscribe the home financing product, With the right strategy, we’ll manage to get a customer who are interested getting Islamic home financing.