Dubai Islamic Bank Report

Question: Discuss about the Dubai Islamic Bank Report. Answer: Introduction A strategy is a plan or a method that is chosen in order to achieve a certain solution or a goal for a certain problem. It can be a way of prioritizing a specific plan by allocating the most effective and efficient resource. A target is a goal set to be achieved. It is also a location or a file to which data is stored or moved. Dubai Islamic Bank (DIB) is one of the largest banks with physical infrastructure and extensive financial in the region within the Middle East. It is currently represented by the emirates in UAE. It has the biggest strengths when it comes to markets segmentations in nearly all business segments. Strategy and target are mostly used by Dubai Islamic in most of its banking operations. Current Processes used in DIB. Branch Opening According to most of the research that have been made, DIB has more than 90 branches in UAE which are at present operating. This has been caused by the continuous growth of the bank which causes its expansion leading to more branches booming in different locations therefore leading to potential success. Due to this many branches opening in different parts of Pakistan which are still operational, business has thrived nonstop. This has also led to great share of clients running the corporate. Customer First Initiative The bank has prioritized its customer needs more than anything else. This has helped them to improve its goals and objectives both internally and externally. In addition to this, every employee has set objectives to themselves of bringing in more customers who have had bank accounts opened. (Rammal, H., 2015). This due to the services offered by the bank including special treatments they obtain. With this, the activities that the bank performs all aims at benefiting their customers as a whole. This strategy has led to Dubai Islamic Bank still exist even today. The Effectiveness of Targeting and Strategy used by Dubai Islamic The most common strategy that has been put forward by the Dubai Islamic Bank was the customer approach. This has been brought about by the customer focus, which is based on their approach. Customers have specialized in different sectors including the personal banking, investment banking, capital market divisions and treasury products (Rammal, 2015). This has given the customers more options to choose on what one needs to base on. The modern technology used in the banking sector and the product innovation has integrated the customers into the bank's processes and has ensured quicker turnaround times. The customer business has been understood including the strategic solutions and comprehensive services have been made available to all clients. All these activities taking place in the bank are conducted in agreement with the sharia law, which is based on the Islamic religion. Research Objectives Current market Targeting, Segmentation, and Positioning Theory. Development and innovation are another target and strategy that Dubai Islamic Bank has put in place. The corporate finance has covered these financial solutions. Dubai Islamic Bank has targeted growth of a loan between 10 to 15% this year after an estimate of 58.4 % rise in 2016 fourth quarter of its net profit. Following the aim of the banks next stage of development, it will also seek the approval of the shareholder in order to raise tier by $1 billion issued capital as well as subject senior for about $5 billion (Sheikh). Commodity finance, project finance and trade, debt market and capital products have been enhanced through the international banking systems and the securities. Sharjah, Jebel, and the Northern Emirates all support the Dubai Islamic Bank through its public and corporate and sector to its clients within these regions since they are all within the CBD and FI. This has led to complete services and full transaction of the banking products. All this developments and in novations have been conducted under the sharia, which is in protest to the structure of the Islamic banking (Rammal, 2015). In addition to this, planned solution-driven competencies and comprehensive services have been made available to all corporate clients. This is has been made easy due to AI Aim region since they are within CBD and FI regions within this business segments. Because of this, the banks are able to offer services in order to meet the needs of the customers and comprehensive group of products to the corporate finance sector (ElMassah, 2015). This is the commodity trading to the development of the real estates and from the financing of commercial airplanes Marines to huge infrastructural projects. Current Process used by Dubai Islamic Bank to Target, Segment, and Position itself in the Banking Sector. Following the current automated marketing target, segmentation and position in treasury sector, innovative solutions have been achieved. Product inline and excellent amenities have benefited as far as technology has been involved in all businesses sectors and other related fields. Mohammed Khateeb the chairman and the CEO conveyed his pride in cooperating with KFH, which was an honor for coming up with the new system. He further added the considerations made that were made in order to achieve complete operational efficiency considering the accuracy and security of the system. This system has contributed in the speaking of the bank's ambitious strategy of business expansion in an innovative manner. This has stimulated other Islamic banks to trial suit (Sheikh). This has led to the reinforcement of the KFHs position in the world market and the best profitability has been achieved. Paradigm shifts have been created in the treasury sector, which has led to the KFH,s maintaining its prest igious status and position in the Islamic financial organizations (ElMassah, 2015). Effectiveness of Segmentation, Targeting and Positioning Strategies used by Dubai Islamic Bank. In the modern world, Segmentation, Targeting, and Positioning (STP) have been the main approach in the todays market. It is has been applied in the marketing models such Islamic Bank in Dubai. It is based on both the products and the customers. Markets have been able to develop and priorities and offer relevant and personalized messages that have led to the engagement of different audiences. In the past, most of the Islamic banks faced the challenge of conventional banking in terms of technology, service, and innovation, which did not only defend the market but also affected the market environment (Wilson, 2013). The Islamic-identified the problems that were experienced such as the credit transfer, the debit access and cash withdrawals and other related banking processes that were involved including in the market sector. They further went ahead and evaluated all these problems from where all these segments were grouped into one. A detailed mobile application was developed which handl ed all these transactions in one platform. This led to this banking institutions reach their customers in a wide range especially those who were under-serviced or un-banked. The delivery and service distinction was due to product innovation and technology (Al Tawari, 2015). Customers were able to do mobile internet banking, schedule of charges, SMS banking, withdraw their money by of electronic funds transfer such and ATM has and phone banking too. Recommendations to Improve Segmentation, Targeting, and Positioning. Islamic banks found in Dubai especially the Islamic Bank of Dubai is building its activities in the main sectors of the economy. This has been made possible by the effective use of the segmentation, targeting and positioning strategies in the bank sector. Segmentation This is the process where markets are homogenous and are subdivided into identifiable segments with similar wants, needs and demand characteristics (Ahamad, Pradhan Ahmad, 2012). Most of the banking organizations aim at focusing on the entire market due to cost, time and effort. Through the methods of the collection of data entailing the challenges that the customers have faced in the banking sector and the market as a whole, good plans have been laid down that have led to the investment in smartphones and other digital elements including the smart cards in the banking sector (Al Tawari, 2015). Targeting Here, the products in each segment to be offered are determined. Customers who are potential are selected from where the bank wishes to send its services and products. Expectations and attitudes have changed at high speed to the plans that have been laid down by the banking sectors especially in the field of mobile banking since they are able to access the media and the evolving technology. The goal set by the banking sectors have been achieved without failure. Positioning Positioning is a marketing strategy that focuses on making a distinct location in order to occupy relative to the existing brands in the attention of the customer. It is also the process of promoting the business, its products, and services inside a specific sector in the market (Wilson, 2013). Business ethics and customer satisfaction have been achieved in relation to the competitors. There has been a huge operation improvement including the innovation of the products and financial position in terms of the cash and profits made. In the style of market segmentation, target and positioning which is a usage-based are always less effective especially when one is creating a profile and how they understand the market, although it is the most appropriate way of determining the customers market strategies in each target market (Ahamad, Pradhan Ahmad, 2012). It is always important to use the computer algorithms since they help the identification of the brands that an organization is dealing with in relation to its dimensions. Conclusion In conclusion, Islamic Bank in Dubai has led the other banks in the rest of the Middle East to follow its suit, especially in the financial sector since it is the sturdiest in the market leader and deposits in the auto finance. Banks are of important in the todays economy since economic activities such as settling of payments, issuing of money, maturity transformation, credit intermediation and creation has been made possible I the method of fractional reserve banking. References Ahamad, S., Pradhan, H.K. and Ahmad, I., 2012. Islamic Banking and Financial Systems: Future Strategies for Facing the Challenges Towards Market Leadership. Al Tawari, I., 2015. What Factors Are Affecting the Development of Islamic Financial Institutions in the GCC. ElMassah, S.S., 2015. Islamic Economy Option: SWOT Case Study Analysis. Rammal, H., 2015.Islamic banking(Doctoral dissertation, Routledge). Sheikh, S., Islamic Banking Scenario In Pakistan.Global Journal of Management and Social Sciences ISSN,2519, p.0019. Wilson, R., 2013. The development of Islamic finance in the gulf cooperation council states.The Transformation of the Gulf: Politics, Economics and the Global Order,146, pp.47-76.