Challenges and opportunities for Islamic retail banking in the European context: Lessons to be learnt from a British–German comparison
Received (in revised form): 29th June 2010
is an Assistant Professor of International Business at Tübingen University. He received his PhD from the University of St.Gallen. His research interests include international business, cross-cultural management and behavioural game theory.
is Professor of International Business at Tübingen University. He has earned Masters degrees in Business Studies (University of Cologne), Economics (Sorbonne University) and International Management (Community of European Management Schools – CEMS) and a PhD (University of Cologne). His current research is on cross-cultural management, comparative management, headquarterssubsidiary relationships and multinational teams. He has published on these topics in books, book articles and journals such as Human Resource Management, Long Range Planning, Organizational Dynamics and International Journal of Human Resource Management.
ABSTRACT The purpose of this article is to identify major challenges and opportunities for Islamic retail banking (IRB) in the European context. We present insights gained from the comparison of two European markets for IRB: the mature British and the relatively undeveloped German market. Based on this information, we propose a framework of four major attributes of a nation’s socio-economic environment that determine to a large degree the evolution of a domestic market for IRB in Europe: demand conditions, supply conditions, regulatory conditions and societal conditions. We review each of these attributes, demonstrate how they can either be an opportunity or a challenge for IRB, and develop a number of suggestions for European countries and ﬁnancial institutions seeking to participate in the growing market of IRB. Journal of Financial Services Marketing (2010) 15, 191–202....