Diversification of Islamic financial products as a strategy to improve Algeria's financial inclusion
DOI:
https://doi.org/10.34140/bjbv7n1-013Palavras-chave:
islamic finance, financial inclusion, islamic law, diversification, economic efficiency, islamic finance productsResumo
This study aims at elucidating how diversifying Islamic financial products can support financial inclusion in Algeria. It includes analysing key indicators of Islamic financial inclusion, assessing the significance and uses of Islamic financial products in extending access to financing, and determining the difficulties Algerian banks encounter when creating, implementing, and designing these products. The study uses an analytical approach, looking at financial inclusion indicators and evaluating how diversifying Islamic products affects increasing financial access. It also looks at the limitations and difficulties banks face when trying to meet market and customer demands while ensuring that these products comply with Sharia law.
The results indicate that diversifying and developing Sharia-compliant financial products can enhance financial inclusion by attracting new segments financially excluded by the conventional financial system. Furthermore, achieving financial inclusion requires Islamic banks to prioritise economic efficiency and Sharia credibility in product development, adopt modern digital technologies, and enhance customer engagement. This approach not only strengthens competitive advantage but also boosts operational efficiency, effectiveness, and cost reduction, ultimately supporting broader financial.
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