Dubai: The expectations levels among users of the Islamic banking services took a lead when compared the same with conventional banks, according to survey findings.
“Around 60% of respondents said their expectations of service were higher from the Islamic banks than traditional banks. However, between nationalities expectations were different, with the majority of UAE nationals 55%, Arab expats 53% and Asian expats (71%) expecting better service and only Western and European expats holding low expectations with only 32% expecting service to be better,” the survey conducted by a Dubai-based Brand + Communications Agency BRAVE.
The findings of its first BRAVE Index study focused on Islamic banking, following its impressive growth story and recent drive to grow take up by expat populations including non-Muslims.
BRAVE reached out to 500 nationally representative respondents in the UAE, leveraging the unique platform of its research partner, On Device Research, where respondents were connected through their mobile phones, ensuring near instant results when compared to traditional research.
The research was conducted using a unique platform, reaching respondents through their mobile phones and providing near instant findings, in partnership with On Device Research.
Its first study was focused on Islamic Banking, following its impressive growth story and recent drive to expand its appeal to expat populations including non-Muslims.
The expatriate population tilt towards Islamic banking was divided into the three greatest enticements of Islamic banking for expat populations. These were “offering an expat focused package” 40%, “the lowest rate credit card” 31% and “if they reached out to me with relevant offers” 28%.
For Western expats, the number one priority was a tailored rewards credit card 45% followed equally by “an expat focused package” and “advertising targeted specifically at me” at 32%.
A hefty 46% of respondents cited that “knowing that late payment fees were donated to charity” would definitely change their perspective on Islamic banking. A further 30% also indicated that it might have an impact. This had the greatest influencing impact on UAE nationals 53% followed by Arab expats 48%, then Asian Expats 43% and lastly Western and European expats 25%.
Around 32% of respondents cited “banks to offer the lowest profit rates” as an expectation of Ethical banks. This was followed closely by “bank to offer lower servicing fees” and “bank to be socially conscious” at 28%. Not surprisingly, “bank to invest profits into ethical investments” ranked high at 26%, Interestingly, UAE Nationals and Arab expats rated social consciousness as most expected with 28% and 34% respectively. Western and European expats cited “innovative products” as their greatest expectation with 32% of respondents selecting this option. Asian expats drove the swing towards expectations of low interest rates with 40% choosing this.
“This first BRAVE Index study has uncovered the insight that for Islamic banks to improve consideration in expat segments, their focus should be on combining their strong customer service proposition with packages that recognize the unique needs of different nationalities. The Index also revealed that there is an opportunity for Islamic banks to focus on educating the market on the ethical and philanthropic differentiators of Islamic banking, which respondents identified would make it more appealing to them,” Commenting on the results of the research, Gina Petersen, BRAVE Executive Director and Co-founder, said.
“Since our inception, BRAVE has been focusing on helping brands take the leap and pioneer change, whether as an established player or a regional start up. The conduct and dissemination of the results of The BRAVE Index research forms part of our strategic plans, as we commission bespoke research to inform strategy development for our clients, ensuring insights remain at the heart of strategic decisions. Interestingly, the research also revealed that 36% of respondents identified BRAVE brands as brands that ‘put their customers first,” Flo Janin, BRAVE Executive Director and Co-founder, added.