BACHELOR OF ADMINISTRATION (HONS) IN ISLAMIC FINANCE

ISLAMIC FINANCIAL PRODUCTS AND SERVICES

EBB20503 (IF10)

FINAL ASSESMENT

ACADEMIC SESSION

SEMESTER JANUARY 2020

SUBMISSION DATE: (16 JUNE 2020)

PREPARED BY
ZUL IRFAN HAZIM BIN SURURI – 622 1121 9262

PREPARED FOR
WAN MUHD NASRUL HADI BIN WAN ABDUL AZIZ
1) From the available data, what other products that you can cross-sell to improve
the customer relationship and profitability for the Bank?

The first product that I want to offered for Mr Nasrul and Mr Hadi is Islamic credit
card. For Mr Nasrul, this is suitable product to him because he likes to travel. A lot of
benefits that he can get such as travel coverage for the takaful protection. For Mr Hadi,
he likes to socializing and movies. Mr Hadi can use the credit card to watching the
movies and get the points for it. He can enjoy the price off and cashback for the retail
purchase. Mr Hadi did not need to bring a lot of cash when he wants to watch movies at
shopping complex. It will make his life become easier. They can enjoy the reward when
they used the Islamic credit card that offered in our bank. The next product that I like to
offered for them is Takaful product. Takaful can be simply known as Islamic insurance.
The contract used is based on Shariah principles and not including the prohibited
elements. Currently, Mr Nasrul already have bought the insurance and Mr Hadi did not
have the takaful or insurance. So, I suggest them to subscribe the takaful policy in our
bank to protect them if anything happen and effect the high loss to them. Takaful policy
is protected their contributor when anything happens such as chronic diseases.

The third product that I would like to suggest for both of them is Unit Trust. There
are several ways to invest in Unit Trust investments such as lump sum investment,
using the first account of EPF or regular investments. For Mr Nasrul, my suggestion is
he need to use the lump sum method. This is because he already has a lot of savings in
his saving account. For Mr Hadi, he can make the regular investment. This is because
he did not own a lot of savings. Indirectly, Mr Nasrul and Mr Hadi have diversified their
saving money and accumulate it by using the Unit Trust investment. From the
diversification, the risk can be reduced and the wealth will be accumulated time by time.
The next product that I want to offered for them is General Investment Account under
the Mudharabah deposits. The Islamic contract used is Mudharabah and also known as
Profit Loss Sharing deposit. The regulations in this product is the depositor will not allow
to make any withdrawal before the maturity period. They can withdraw it but they will not
able to get the profit share. The return by using this product is quite high and profits will
be calculated and distribute at the end of the agreed period. It can make their goals will
be achieve if they want to contribute in our products offered to them.
2) What additional information would you require from the customer to enable you to
improve the customer portfolio? Discuss.

The first additional information that required from the customers is the financial goal and
their target that want to achieve in the future. From this, we can examine the specific
financial position and we can manage the portfolio by setting the suitable platform according
to their goals. The second information needed by me is the record of the previous
investment such as unit trust. From the previous record, I can make the comparison to the
customers in term of dividend. From this, I can to the Mr Nasrul and Mr Hadi about the
benefit of investing in our bank. The next information needed is the document about the
personal expenses or commitment. This is important to measure that the customers able to
make the new financing or not. The document to measure the credit worthiness whether the
customers able to make the monthly repayment after their make the new financing with us.

Next, I need to clearly identify about the retirement planning of the customers. If the
current retirement planning is not suitable with our customers, we can manage it and help
them to achieve the financial freedom after the retirement. For the takaful products, the
customers need to make the medical check-up if they suffered the diseases. This is
requirement for the medical product in takaful. The last information that required by bank is
the customer type of risk and type of investment to be use for their investment platform. I
need to aware about the risk especially financial risk. The bank needs to help the customers
to achieve their financial goals. For the customer that not willing to face the risk, the bank
need to suggest the low risk investment such as ASB. If the customer is the risk seekers, the
bank can offer the high-risk investment to them. In general, high risk high return and low risk
will get the low return.
3) Are there any further services that you may offer / customize for him? Discuss

The services that we can offered to the Mr Nasrul and Mr Hadi is online banking
facilities. The customers able to make the transaction by using the electronic devices such
as laptop and smart phone. From this, they can pay the bill such as telco, water and
electricity using online banking. They did not need to queue for make the utility payment.
The customers also can view their daily transactions. The customers also can make the
transfer easily by using instant transfer or Inter-Bank Giro (IBG). The online banking can be
download from the PlayStore or Appstore. The other services that can be offered for Mr
Nasrul and Mr Hadi is serve the monthly report statement regarding the investment. It is
important to measure the performance of the investment. From this, they can decide to
continue with our products or not. Next, our bank has their owns website for references
purpose to their customers. All information can be noticed by customers without any
boundaries. In the websites, the customers can explore about the new products or new
policy by the bank. For the deposit account, the money will be fully protected by Perbadanan
Insurans Deposit Malaysia (PIDM). For the Unit Trust investment, the bank will send the
account summary statement to the investor twice a year. This is important to the customers
for monitoring the investment performance. Next, our bank offered the credit rating services
to make the checking about the customer credit worthiness. Lastly, the bank has the
reservation of money from the other countries for the foreign exchange purpose. For
example, the tourist can exchange the USD notes to the Malaysia Ringgit notes. This is
good services that can be used by Mr Nasrul. This is because Mr Nasrul like to travel.

4) In your opinion which one is easier to influence and manage, an adult customer like
Mr. Nasrul or a young executive like Mr. Hadi? Why?

In my opinion, the customer that easy to manage and influence according to the case
is Mr. Nasrul. The main reason is Mr. Nasrul currently have a higher monthly income
compare with Mr. Hadi. From this, Mr. Nasrul is able to make the contribution to any
investment that had been suggested without any worried. Mr Nasrul also can spend his
money to the several type of investments and get the high return for it. Next reason is Mr
Nasrul already have the high contributions in investment such as Unit Trust compare with Mr
Hadi. The process of briefing to the Mr Nasrul about the products will become easy because
he already knows and have the awareness about the importance of investments.
 The other reason is Mr Nasrul is the successful businessman. The main aim for a
businessman is to expand and get the high profit from the business. As an individual, Mr
Nasrul also have the awareness to accumulate and expand his wealth same as business.
So, Mr Nasrul also knows how to expand their wealth to get the freedom after the retirement.
Lastly, the age for Mr Nasrul is 54 years old. The retirement phase is close with him. So, the
retirement strategy must be done by him. The financial freedom after retirement can be
achieved from the contribution in several types of investments. From this, Mr Nasrul will get
the other income and not only depend on his business income. As a conclusion, it will be the
easy process to convince Mr Nasrul compare with Mr Hadi.

5) Other than existing consumer products subscribed by both, do you have any
business advice or products to offer? If yes, please specify.

The first product that I want to advice for Mr Hadi is ASB Financing. This financing
maximum amount is RM 200,000 and the minimum amount is RM10,000. ASB financing is
the financing product that offered by us and the customers must pay for the monthly
installments. The interested part is ASB investment had been governed and secured by the
Government of Malaysia. So, the investor will not suffer the loss. Besides that, the
investment can be easily liquidated but the customers need to make the monthly repayment
for the minimum period which is 3 years. The average of dividend for every year is around
7%. This investment offered the high dividend. The dividend can be withdrawn by the
investor after the dividend had been announced. The dividend also can be accumulated at
the ASB account. So, the principal amount will be increase and they able to get the high
return in next year. Mr Hadi is suggested to make the ASB financing because it will help him
to achieve his goal which is to married in the near future. The dividend get from ASB can be
accumulate and used to support the marriage purpose saving. Mr Nasrul is not suggested to
make the ASB financing because he already has a lot of saving which is RM828,000. Mr
Nasrul can open his own ASB account and invest there. Mr Nasrul just need to wait for the
yearly dividend.
 Mr Hadi goals is to married in the near future. To achieve it, Mr Hadi can make the
personal financing-I with our bank. He can use the money as her wedding expenses.
Personal financing in our bank is using the tawarruq contract. The contract involves sale and
purchase contract. The bank purchased the Crude Palm Oil from the first broker. The
second step bank sells the crude palm oil to the customer with the deferred payment method
and with the cost-plus markup price. Now the commodity is owned by the customers. After
that customers appoint bank as agent to sell the commodity to other brokers at the cost price
and by cash. From this, customer will get the financing that needed by them. The repayment
amount will be including the markup price.

The other product that I want to offered to Mr Nasrul is investment for his children
educations in the future. At the end of the maturity, he can use the money for the education
purpose for his children. This is a good investment because education is the important things
in this modern era. Next product that I want to advise is vehicle (car) financing. The product
that I want to offered is AItab Hire Purchase-I. They can buy the several types of car which
are new local car, new foreign car, used local car and used foreign car. The margin financing
which is the bank will finance up to 90% of the financing through on the car will be purchase
by both. Other 10% will be contribute by them as a deposit or down payment. For the early
payment by them, the bank can offer ibra’ or rebate and the penalty will be charged if they
fail to meet the payment obligations. Other products that I want to offered is house financing.
Mr Hadi want to get married and this financing will really help him. The Islamic contract used
is Musharakah Mutanaqisah. This is the partnership contract and the customers need to pay
monthly rental to bank. The shares of the bank will be decrease time by time and the
ownership of customers will be increase. The Musharakah Mutanaqisah also called as
diminishing musharakah.