Masraf Al-Rayan Banking - Essay Example

Banking facilities play a significant role in ensuring that customers can borrow capital to invest it in other sectors. The customers’ deposits are given to other customers as loans that are later repaid with interest. Loans and other financial assistance play a significant role in making sure that economic growth is attained. By increasing economic growth, it implies that the country’s Gross Domestic Product is boosted. This paper seeks to analyze Masraf Al-Rayan which is listed in the Qatar exchange by studying its business model and SWOT analysis.
Masraf Al-Rayan is an Islamic banking that is concerned with financing, investing, and other activities like brokerage. The bank is based in Qatar, and it is an international firm. The business model of the company is that it operates in corporate banking, retail banking, and lastly through asset management. Corporate banking involves corporate finance and other advisory services that are needed by the customers. In corporate banking, the management is concerned with how capital is restructured, capital raising, and valuation of the customers when they need loans to expand their businesses as well as mergers and acquisition. Additionally, it is also concerned with specialized investments and project finance among others.
The next business model is retail banking which ensures that the bank considers current savings and the customer deposits accounts. Retail banking also plays a significant role in ensuring that it is financing the credit card for the customers, checking the kid's account and ensuring that it is updated to the month the customers have paid (Mishkin and Eakins, 2009). It also ensures that the pay and the prepaid cards are financed fully so that customer complaints are reduced and ensure efficiency in the company. It plays a critical role in ensuring that private banking products and services are offered to customers.
The last business model is asset management for the customers and the bank assets that they have acquired through credit or buying cash. It also ensures that cash management is controlled so that customers can get the capital any time that is required as long it is business working hours. Business planning and financing is the role of the asset management department. The aim of the department is to carry out a valuation and then fund the business so that the bank and customers can gain from those investments. The financial brokerage makes it possible for the bank to buy real estate and later sell them to the customers with the aim of gaining profit after the sale (Evans, 2008). By using the three business models, Masraf Al-Rayan has been able to operate in more than 12 branches that are located in Qatar. The company's headquarter is based in Doha Qatar and thus making the Islamic investors utilize the bank's potential for the growth of the economy. Through retail banking, members of business communities are effectively funded and thus improving their financial status.
SWOT analysis
Strength
-Well-known and leading financial institution based in Qatar
-An increased asset in the past few years that has resulted in the availability of money in the institution
-Qualified staff and management who are able to run the financial institution
-Investments plans with the customers to uplift their status Opportunity
-Due to technology the use of mobile banking is embraced and thus the banking institution should engage their customers to use Android and IOS devices so that they can conduct online services
-Expand to other locations that increase the bank's opportunity to increase revenue
-The core values of the company that have been introduced help the staff to serve their customers well
Weakness
-The financial institution has more debts making it rely on outflows that are gained as a result of interest payment
- The bank operates in credit risks which may in turn cause more debts to the institution (Carey, 2006).
Threat
-Stiff competition due to competitors like Qatar National Bank and Commercial Bank of Qatar among others
-The bank is only located in Qatar and thus challenges may emanate in Qatar making it hard to operate
-Due to online services the system may be hacked or infected by Trojans thus unable to operate
Conclusion
The management of the financial institution should ensure that its system is running properly. For example, since they use the advanced technology of mobile banking, the use of applications that meet consumer requirements should be introduced like Androids and IOS devices. The online services should be monitored so that hackers and Trojans can be detected any time they invade the system. Read More