Examining the role of computer and data mining to counter the negative impacts of globalization in Islamic banks

Abstract

The world is moving towards Globalization and from there, to Googlization; where there are no limits or restrictions, in spite of the multiplicity of manifestation. The move is most prominently seen in the economic sphere, and banking institutions are no exception to be affected. According to this, there are two major challenges faced by Islamic banks. The first is the merger or what is known as conglomeration, a major force in economic and the second is financial globalization that is also faced by the Islamic economy. This phenomenon requires the Muslim community including the Arab countries to keep up with the reality-based competition on a local and international levels. This study aims to enlighten on the strategic proposal for Islamic banks in Arab countries to take advantage of the opportunities offered by globalization and therefore achieve greater benefits and reduce the risks and threats associated with them. The study focuses on two groups of results, namely public and private as the main subject matter. The study also looks at the current lack of technical developments which could adversely affect the speed of decision-making and lead to lack of coordination among the key decision makers. In studying the exposure of these institutions being to financial crises as a result of globalization, this paper also shows the possibility of  benefiting from the experiences of the commercial banks, stating that globalization can actually stimulate Islamic banks to innovate and develop methods and attract new financing and investments. The researchers give few recommendations, such as fostering closer cooperation among Islamic banks in all countries and building a strong entity operating under one umbrella. The aim is to create competition between commercial and Islamic banks. This can be achieved through faster decision-making using advanced techniques and creating foundations and activating the role of the young talent by giving them a significant role. To implement all these recommendations, a strategic change in leadership is required.