ROIHAN BINTI YAZIT (2010124335)

PREPARED FOR:PM AZMAN DAIM

:CIK SHARAZAD HARRIS

3 JAN 2013

Customer awareness and acceptance on Ar-Rahnu scheme:

Case study of Bank Kerjasama Rakyat Greentown Branch

Presentation Outline INTRODUCTION

OBJ OF THE STUDY

PROB STATEMENT

SIGNIFICANT OF THE STUDY

FINDING

CONCLUSION

RECCOMENDATION

INTRODUCTION

Pawn broking by definition is secured money lending by pawn shops

conventional pawn broking systems create exploitation and injustice to the pawner since the system is biased toward the pawn brokers

pawners were burdened with high interest rate imposed on the loans

Malaysia government had initiated the establishment of Islamic pawn broking instruments

known as Ar-rahnu which can be defines as a pledge or it is also means security for the loan

Islamic pawn shop has the contract (aqad)

Concept of Ar-rahnu is the borrower (Ar-rahin) required to give a collateral (Ar-rahn) in the form of gold

collateral is an important instrument to ensure the repayment of the loan

If the borrowers are not able to pay for the storage fees until the maturity, the lender (Al-murtahin) has the right to sell the collateral to recover the loan.

The surplus amount of the auctioned collateral will be return back to the borrower.

The lender only takes the default amount of the storage fees and the principle from the auctioned goods.

SYARIAH BANKING CONCEPT

BASIS IN THE SHARIAH

Al-qardhul Hassan (loan without interest)

Al-wadiah yad dhammah (keeping valuable

goods by guarantee)

Al-ujrah (storage fees)

Ar-rahn (collateral)

Al-Quran,

Sunnah

Ijma" of Ulama.

OBJECTIVE OF THE STUDY

To identify whether the factors of (gender, age, race, education background, working status, income level, and marketing tools) influence the customer awareness towards Ar-rahnu scheme of Bank Kerjasama Rakyat.

To measure whether the factor of (storage charge, service quality, locality, management and shariah views) affect the customer acceptance toward Ar-rahnu scheme in Bank Kerjasama Rakyat.

To determine the most and the least factors that contributes to customer awareness and acceptance toward Ar-rahnu scheme provided by Bank Kerjasama Rakyat, Greentown Perak.

RESEARCH QUESTION

What are the factors that influence the customer awareness toward Ar-rahnu scheme of Bank Kerjasama Rakyat, Greentown Perak.

What are the factors that influence the customer acceptance awareness toward Ar-rahnu scheme of Bank Kerjasama Rakyat, Greentown Perak.

What are the most and least factors that contribute to the customers awareness and acceptance towards Ar-rahnu service provided by Bank Kerjasama Rakyat, Greentown Perak.

PROBLEM STATEMENT

conventional based pawn broking had been created a large exploitation and injustice to the customer (borrower) since the customer was burden with the high interest rate imposed on the loan.

Government had been realizing the need of Islamic pawn broking and the establishment of the Islamic pawn broking is one of the initiatives done by government to help Malaysian from the burden of high interest rate.

Since the Bank Kerjasama Rakyat had been launched Ar-rahnu scheme the problem of exploitation and injustice by conventional pawnshops had been settle. However, there is a problem occur which is whether customer aware there is Ar-rahnu (Islamic pawning scheme) offer in Bank Rakyat. This paper also proposed a comprehensive study by evaluating factors which is influence the acceptance of customer Ar-rahnu Bank Rakyat.

SIGNIFICANT OF THE STUDY

RESEARCHER

CUSTOMER

STUDENTS

MANAGEMENT OF THE COMPANY

METHODOLOGY

Using primary data

Questionnaire

60 respondents

Greentown Nova buss center & BR Greentown

Key in data in Microsoft excel

Generated table & bar chart

Interpret data

FINDINGS

70%

30%

Level of awareness among respondents

Aware

Not aware

CUSTOMER AWARENESS

45%

55%

Level of awareness among male & female respondents

Male

Female

9%

48%

36%

7%

Level of awareness according to respondents age

18 - 25 years

26 - 40 years

41 - 55 years

> 56 years

64% 10%

26%

Level of awareness among Malay, Chinese and Indian respondents

Malay

Chinese

Indian

21%

31%

43%

5%

Level of awareness according to respondents level of education

Secondary

Diploma

Degree

Master & above

19%

38%

43%

Level of awareness among respondents profession

Government

Private

Self employed

36%

50%

14%

Level of awareness among respondents income

< RM 2,500

RM 2,500 - RM 5,000

RM 5,001 - RM 10,000

24%

70%

6%

Marketing tools

Printing media

Electronic media

Friends & relative

CUSTOMER ACCEPTANCE

1. STORAGE CHARGE

STRONGLY AGREE

AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

LOWER SERVICE CHARGE

28 20 10 2 0

SET FAIR PRICE

23 19 17 1 0

BETTER PAWN PRICE

28 16 16 0 0

2. SERVICE QUALITY

STRONGLY AGREE

AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

EASE APPROVAL PROCESS

27 19 12 2 0

ADVICE & COUNSELLING

33 18 8 0 1

RECEIPT ISSUANCE

33 21 12 2 3

FAIR TREATMENT

31 12 12 2 3

FAST & EFFICIENT SERVICE

17 28 12 3 0

NOTICE SENT 27 28 5 0 0

RETURN SURPLUS MONEY

40 18 2 0 0

3. LOCALITY STRONGLY AGREE

AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

PBLIC TRANSPORTATION

37 10 11 1 1

NEAR TO MALL & BUSS CENTRE

46 10 3 1 0

NEAR RESIDENTIAL AREA

13 18 0 4 25

NEAR WORKPLACE

18 25 0 4 13

AVAILABILITY PARKING SPACE

2 38 19 1 0

SECURE AREA 4 38 15 0 3

4. MGT STRONGLY AGREE

AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

CHANCE GAINING FINANCING

17 34 9 0 0

SERVICE CHARGE AFFORDABLE

14 35 11 0 0

PAWNING PERIOD REASONABLE

17 34 9 0 0

TRANSACTION IN SEPERATED SPACE

34 19 6 0 1

ADVERTISEMENT EVERYWHERE

14 19 17 10 0

DISPLAY CURRENT GOLD PRICE

39 20 1 0 0

5. SHARIAH VIEW

STRONGLY AGREE

AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

ISLAMIC LAW 27 24 9 0 0

QURAN & SUNNAH

25 23 11 0 1

INTEREST FREE 21 22 16 0 1

FREE FROM UNCERTAINTY

19 25 15 0 1

OPERATE INJUSTICE

24 21 14 1 0

CONCLUSION

The result of the study indicates that the level of awareness among the malay respondents were good but for chinese and indian indicates relatively low.

Due to lack of information

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