SWOT ANALYSIS

Strengths Weaknesses
 Community Financial Services  Banking transactions must be
 Able to reach its domestic customer shariah compliant.
base through the Maybank Group’s  constrained within a more
extensive branch network and conservative framework
automated teller machines  asset amount owned by Islamic
 Global banking banking may be relatively small

Opportunities
 Internal Shariah Functions
 Shariah Governance Structure
 Islamic banking has benefited from
the crisis
Threats
 Liability and business risk
 Extra management burden
 Problems of the borrowers of pure
loan

Based on the table above this is what our group is base to conclude from our
research on Maybank Islamic. The SWOT analysis stands for strengths,
weaknesses, opportunities and threats. Here is an explanation of each of the points
above:
Starting with strengths of Maybank Islamic, the first point states that Maybank
Islamic offers a wide range of community financial services. Such as consumer
finance, mortgages, automobile financing, etc. Maybank Islamic provides customers
with a wide range of mortgage financing options. It primarily consists of lending
facilities for new buyers refinancing houses and shop houses, with a market share of
23% as of December 31, 2013. As of December 31, 2013, house financing
accounted for 82 percent of total mortgage financing rise. Maybank Islamic is able to
retain its high profile thanks to its ability to cross-sell its goods and services. Next,
Maybank Islamic is able to reach its domestic customer base through the Maybank
Group’s extensive branch network and automated branch network and automated
teller machines. Maybank Group is Malaysia's largest bank by branch count, with a
customer base of more than 21 million people spread across 17 countries. Maybank
Islamic offers global banking as they have a widely spread range of users from
across the world who wishes to use a shariah compliant banking service. Maybank
Islamic’s global banking has contributed as much of 24% of their financing in 2013.
The client coverage team was also established across these business units to offer
customized, innovative products to clients and to meet these clients’ diverse financial
needs.
 Next which is the weaknesses of Maybank Islamic. Firstly from the non-
Muslim perspective, banking transaction must all be shariah compliant. This implies
that the bank demands that all transactions be halal. This basically means that you
cannot use an Islamic credit card to buy alcohol, gamble, or any other ‘non-halal'
goods or services. However, this is not a significant drawback since it can aid in the
prevention of long-term bad habits. Next is constrained within a more conservative
framework this is due to the religious foundation of Maybank Islamic as it must be
shariah compliant. As mentioned before this is not a disadvatage for Muslim users of
Maybank Islamic. Other than that, the asset amount owned by Islamic banking may
be relatively small compared to conventional banking. However, as the world markets
struggle to recover from the financial crisis, Islamic banks have continued to expand
at a steady rate, and their ability to avoid global recession could be attributed solely
to a “more ethical and risk-averse investment strategy than traditional banks”.
The opportunities for Maybank Islamic are as follows, The Bank has
developed strong internal Shariah functions, which include Shariah Advisory and
Analysis, Shariah Transaction Management, Shariah Secretariat, Shariah Risk,
Shariah Review and Enforcement, and Shariah Audit, to support the Shariah
Committee's functions, which include but are not limited to participating in product
creation, providing Shariah advice, and conducting Shariah reviews and compliance.
Due to it being constrained within a more conservative framework; the shariah
governance structure. The Shariah governance system, procedures, and
arrangements of all organizations within the Group that conduct Islamic business
transactions are structured to fulfil the following goals, ensuring that all of the Group's
operations and business activities are Shariah compliant. In more tumultuous times,
this will shield the structure from unstable foundations. It can, however, limit its
exponential growth. This might, however, be a more long-term realistic approach, as
Islamic banking will continue to expand steadily while other banks face significant
challenges and setbacks. Next, Islamic banking has benefited from crisis compared
to conventional banking. Because of their ample capitalization, Maybank Islamic is
being brought into deals now more than ever. This is valid despite the fact that
Islamic banks have historically been more expensive to use and have played a
minimal role in the past; however, the situation has changed in the face of the current
crisis. This is owing to their more conservative and less speculative approach, which
enabled them to retain a strong capital position. Other than that, Maybank Islamic is
less affected by credit crunch. Maybank Islamic, a Shariah-compliant financial
institution, is seeing growth opportunities while traditional banks are experiencing
liquidity issues. Islamic financial institutions' relatively small size can also preclude
them from playing a major role in various regional transactions, where their small size
may be seen as a drawback and the banks may be ignored.
The threats of Maybank Islamic are the following, first would be the liability
and business risk. In an Islamic transaction, both parties must share both risk and
benefit. Benefit and responsibility must be balanced. Since the lender is funding the
borrower, he must contribute something in exchange for his return. The Shariah
Board was formed to ensure that all Islamic financial institutions function according to
these principles. Individuals with professional knowledge of Islamic jurisprudence and
finance make up the Shariah Board. Next threat is the extra management burden of
Maybank Islamic. They aid Islamic financial institutions with corporate governance.
They are also in charge of handling Shariah non-compliance risks to ensure that
Islamic financial institutions operate their businesses effectively and with the least
amount of risk. The Islamic banks must supervise and, in some cases, finance the
operation of the project they are funding, which puts them at a disadvantage as
opposed to interest-based banks. This issue is especially acute in developing
countries, where companies often fail to maintain proper accounts or keep separate
sets of accounts for various purposes. The cost of Islamic banking will increase as a
result of such malpractices. Unless foolproof devices that do not incur these
additional costs for Islamic bankers are established, the growth of Islamic banking
activities is likely to be severely limited.

https://ringgitplus.com/en/blog/banking/conventional-banking-vs-islamic-
banking.html#:~:text=Disadvantage%20of%20Islamic%20Banking
%20Products&text=Another%20disadvantage%20(from%20a%20non,be
%20'halal'%20in%20nature.&text=This%20does%20not%20necessary
%20apply,Halal%20goods%20like%20alcoholic%20beverages.
https://www.researchgate.net/publication/228172567_Islamic_Banking_Strengths_W
eakness_and_Areas_of_Growth/link/5dea8de84585159aa468894b/download

https://www.seajbel.com/wp-content/uploads/2016/09/K10_2
https://islamicmarkets.com/education/issues-faced-by-islamic-banks