SHARIA DEPOSIT AND OTHER PRODUCT INNOVATIONS

Abstract

Sharia banking is currently faced with intense competition in gaining market share, both competition between sharia banks and conventional banks as well as between sharia banks. Therefore, Islamic banking must have a competitive advantage by innovating products. This research proposes a product innovation model by taking advantage of opportunities for the rapid development of the global sharia economy and improving international confidence in the Indonesian economy with the support of strengthening the Sharia Banking Working Group (WGPS), fulfilling sharia provisions (sharia compliance), achieving financial stability, as well as increasing product innovation activities. The proposed model is expected to encourage the expansion of the sharia banking market both domestically and abroad by providing a variety of products that are closer and accepted by the public. Sharia banking is expected to innovate products that have high social embeddedness (close, acceptable, and in line with people's preferences).