An alternative financial model proposal for Islamic banks operating in Turkey

Islamic banking attracts the attention of many segments because it is an alternative banking system in the world economy. Participation banking, as it is known in our country, is a banking system that starts with the principle of interest-free banking services and offers financial products in accordance with Islamic rules. The total share of participation banks in the banking sector is 8.7% as of January 2024. It needs to be improved in various areas in order to increase its market share in the sector and compete with conventional banks. In this context, it is extremely important to be able to offer new products that will expand the customer portfolio. At the same time, these products must be designed in accordance with Islamic principles and have the ability to compete with conventional banks. Credit cards, which are widely used in the world and in our country, constitute the other main topic of this study. In the conventional banking system, credit card functions as a modern and practical payment tool. At the same time, a credit card is an instrument that provides short-term interest-free loans. Islamic banks are looking for alternative and feasible methods to provide credit card services that have similar features to traditional credit cards but operate in accordance with Islamic principles. The development of the Islamic credit card market indicates the acceptance and trust of the Islamic economics and financing approach in the market. The use and proliferation of Islamic credit cards will undoubtedly contribute to the development and growth of participation banks. One of the important goals of this research is to introduce a market-oriented Murabaha-based credit card model that is both in line with Islamic principles and can compete with conventional banks. The main purpose of working within the framework of this target is to propose a market-oriented Murabaha-based credit card model that can appeal to Generation Z (university students). For this purpose, qualitative method was used in the research. Semi-structured interviews were conducted with a total of 24 professional experts who work in participation banks operating in Turkey and have at least 5 years of work experience in their field. MAXQDA qualitative analysis program was used in the coding and analysis process of the obtained data. As a result, the subject was evaluated in detail through 4 important themes and the participants' perspectives on the subject were presented. These themes are as follows: Operation of participation banks; Current problems in participation banking; customers' reasons for choosing Islamic banking and their experiences with the proposed model. In the light of the findings, a market-oriented murabaha-based credit card model proposal that will contribute to the literature as a new concept is presented. Keywords: Credit Card, Participation Banking, Islamic Credit Card Model, Murabaha Based Credit Card, Market Oriented Murabaha Based Credit Card