Co-creation of Socio-economic Values in Islamic Banking Service: Case Study Research in Pakistan

Abstract

This study examines the case study research in Pakistan to show the importance of socio-economic values in the banking world by citing the case of Islamic banking. Following Sharia traditions, Islamic banking is more concerned with socio-economic values, such as well-being, trust, ethics and partnership than with economic values, such as money in terms of interest.

To investigate the unique value, service system and value proposition in Islamic banking, we combined the results from literature review, press releases and interviews. The literature review showed that the Islamic banks ensure secure investments and profit or loss sharing. The press releases on banking websites showed that Islamic banking focuses on socio-economic values rather than economic values. The interview analysis showed that Islamic banking is mostly focused on justice and transparency of projects, achieved under the benevolent watch of the Sharia board, over all banking activities.

These findings reveal that the backbone of value co-creation in Islamic banking is contract-based projects which create economic opportunities and social experiences, and ensure that in Islamic banks, values create value for the customer. This concept is typically seen even in modern services.