Opportunities Of Islamic Banking In The Uk Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1579 Downloads: 2 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? Islamic banking is a hot topic in western countries especially in the UK. In the UK almost 2 million Muslims community is living and they want to spend their lives according to their religion (www.guardian.co.uk). This community is well contributing to the economy of the UK due to this the UK government gives more importance in the sector of Islamic banking. Nowadays the UK is the hub of Islamic banking and most of the high street banks providing the services of Islamic window. Due to this growing demand, Islamic banking faces some difficulties and challenges in western countries. The purpose of the study is to examine and analyze the growth and opportunities of Islamic banking in the UK. 5.2 The Paradigms and Methodologies There are two main research paradigms positivistic and phenomenological. It is possible that different authors may use the alternative terms for these main paradigms in different time. The most commonly and alternatively used the terms ar e quantitative research method for positivistic and qualitative for phenomenological (Collis and Hussey, 2003). The originally the positivistic paradigm was developed in the natural sciences to study natural phenomena and it is confirmatory and deductive in nature. The phenomenological paradigm was developed in the social sciences to facilitate the researchers to research and analyze social and cultural phenomena and this approach is exploratory and inductive in nature (www.socialresearchmethods). The paradigm is very important because it gives you a right path to use the right methodology. According to Collis and Hussy (2003 p.55) acirc;â‚ ¬Ã…“Regardless of which paradigm you are employing, it is important that you pay attention to all the features, and ensure that there are no contradictions or deficiencies in your methodologyacirc;â‚ ¬Ãƒâ€šÃ‚ . The paradigm of this research is phenomenological because it tends to produce qualitative data not quantitative. The quantita tive research is objective in nature that involves analysis of numerical data by applying statistical tests (Collis and Hussey, 2003). But the qualitative research is much more subjective in nature, concerned with generating theories and can be generalized in understanding of the phenomenon of challenges and opportunities of Islamic banking in UK. 5.21 Reason for chosen Qualitative Research In qualitative research methods it is easy to get detailed, conceptual and rich ideas because these methods provide the results that how people feel and what they think because they feel relax to comments on any specific topic (www.orau.gov). In my research it is comfortable to hold qualitative research because it is related to banks authorities and banking customers. From the interviews with banks authorities it is easy to get information about growth and development of Islamic finance in the UK and as well understanding of Islamic financial products between banks and customers. Ther e are some advantages of qualitative research over quantitative research. In qualitative research it is easy to explore topic in detail and more depth than quantitative research methods. Qualitative research has the advantages over quantitative research because it is less expensive there is no need to contact with many participants as well no need to use the expensive methods and software for analysis. The qualitative research is more flexible in term of locations and timing because there is no need to interviews a large number of people to take result (www.orau.gov). It is resulted that qualitative methods can provide all the information in detailed because in unstructured and semi-structured interviews the participants feel no hesitation to discuss matters in details. The qualitative research has some demerits as well because it is not able to produce the exact figures that how many people of society understand the topic and it is difficult to express what people like and disli ke (www.orau.gov). It is difficult to analyse the data in qualitative research because the collected information are too much and to conclude this data is a hard job due to time constraint. 5.3 Research Method For this research project, I chose to undertake qualitative research method. The qualitative method is a type of research that emphasizes the quality of meaning in consumer perceptions and behaviours; there are different criteria or techniques can be used in qualitative method such as in-depth interviews and focus groups (https://marketing.about.com). The most common qualitative research techniques include: In-depth interview Focus group Case study Direct observation Diary methods Role-play and simulation (www.projects.exeter.ac.uk). 5.3.1 Reason for chosen in-depth Interviews I chose in-depth interview technique for my qualitative research due to its unique advantages over other techniques such as focus group and questionnaires. In the way of in-depth interviews it is easy to speak to an individual and keep his attention on specific topic comparatively it is difficult in focus group interviews. There is a lot of time saving and reducing the hassles to take an appointment from individual. The main advantage of in-depth interview is that the interviews can be easily conducted with key community leaders through that researcher can get a fast overview of a community according to his requirements (www.caps.ucsf.edu). In-depth interview has advantages over questionnaires base research that researcher can get the information itself and there is no any discrepancy in understanding and analysing the data for result. In questionnaires there is possibility that some participants are unable to respond on time and as well some time there is difficult to understand the theme of questionnaires. According to Collis and Hussey (2003) the major problem in questionnaires especially distributed by post that delay in response and some time no response by the participants. 5.4 Data Sources 5.4.1 The Primary Data This research is based on a study of the UK because growing population of Muslims community is playing positive role for the UK economy. Actually most of the Muslims want to spend their lives according to their faith. In this case study it will be examined that what are the problems and opportunities in the UK for Islamic banking. I will use the qualitative method of research in this project. There are different techniques of qualitative method but according to the situation the in-depth interviews is more suitable form for this project. According to Collis and Hussey (2003) in phenomenological approach the interview questions are unstructured or semi- structured in pattern not closed questions like positivistic approach. The plan is that the researcher will prepare semi-structured questions that are helpful to take maximum information from interviewees because in closed questions it is possible t hat some important information will be ignored. In semi-structured interviews the researcher has an opportunity to probe various areas and to raise specific queries during the semi-structured interviews (https://www.iiu.edu.my/iaw/). 5.4.2 The Secondary Data According to the project requirement the existing literature will be used for theoretical study from all resources such as academic and scholarly journals, newspapers and magazines. The interviewer will also follow the previous research of Islamic banking with regard to challenges and growth in Australia and Malaysia because there is lot of work in this sector. 5.5 Data Collection Methods For the collection of primary data I shall use technique of in-depth interview. The plan is to hold the seven in-depth interviews from different sectors of the society. The researcher will hold three interviews from the banks authorities such as HSBC, Lloyd TSB and Islamic Bank of Britain that will give the clear facts and figures a bout the growth, opportunities and problems related to Islamic banking with reference to shaacirc;â‚ ¬Ã¢â€ž ¢riah compliance and Governmental authorities. Two with such Muslims who already customer of the Islamic banking which will facilitate the research through providing the information why they did take up Islamic banking, advantages and disadvantages of this system and as well about the scope of Islamic banking in UK. Two with such Muslims that are not using Islamic banking product which will helpful to investigate why they have not taken the Islamic banking product and which factors are stopping them from these services that are according to their faith. My plan is to speak to non-Muslims that are using the Islamic banking products that will provide the best information for the growth and strong fundamentals of Islamic banking. The planned is to conduct these interviews through sending letters to banking authorities and emails to customer services department of the perspe ctive banks to arrange an appointment. To take interviews from customers and non-customers of the Islamic banking the interviewer will use the posters advertisement in the mosques and libraries in that area where the Muslims are living in majority. The interviews will be recorded using the voice recorder with the permission of the interviewees. If the voice recorder is not possible then the interviewer will take notes which will be summarized with full detail and also these notes will be available on demand for further investigation. 5.6 Limitation of the Study According to the proposed planned of seven interviews it is possible that there should be some hurdle to get all information from customers of Islamic banking. In the course of research if the researcher will feel to get more widely information about the growth of Islamic banking then mini open ended questionnaires will be conducted. According to Collis and Hussey (2003) it is possible that the method of questionnaires can be applied in both methodologies. The success rate of the project will be examined based on the existing theory of Islamic banking and assumptions made during the research. The primary data will be analyzed on the base of actual ambition of the Islamic banking and its implementation. Don’t waste time! 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