Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis

Purpose This study aims to examine the prospects of using an online dispute resolution (ODR) platform for resolving relevant Islamic banking disputes in the usual banker–customer relationship in Malaysia. It is argued that through proper regulation, such innovative dispute management mechanism woul...

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Main Authors:	Oseni, Umar A., Omoola, Sodiq
Format:	Article
Language:	English English
Published:	Emerald 2017
Subjects:	KPG Malaysia
Online Access:	http://irep.iium.edu.my/66115/ http://irep.iium.edu.my/66115/ http://irep.iium.edu.my/66115/ http://irep.iium.edu.my/66115/2/66115%20Prospects%20of%20an%20online%20dispute%20resolution.pdf http://irep.iium.edu.my/66115/3/66115%20Prospects%20of%20an%20online%20dispute%20resolution%20SCOPUS.pdf

id	iium-66115
recordtype	eprints
spelling	iium-661152018-10-03T02:15:53Z http://irep.iium.edu.my/66115/ Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis Oseni, Umar A. Omoola, Sodiq KPG Malaysia Purpose This study aims to examine the prospects of using an online dispute resolution (ODR) platform for resolving relevant Islamic banking disputes in the usual banker–customer relationship in Malaysia. It is argued that through proper regulation, such innovative dispute management mechanism would not only address some legal risks associated with banking disputes but could also prevent reputational risks in the Islamic financial services industry. Design/methodology/approach Based on an internet survey, responses were obtained from about 109 respondents in Malaysia. The data obtained were subjected to multivariate statistical analyses considering factors such as access to justice, attitude of stakeholders, resolving disputes, practical issues and understanding of ODR. Findings The results obtained showed that “access to justice”, “attitude of stakeholders” and “resolving disputes” are the most influencing factors affecting the intention to use ODR among stakeholders, particularly customers and bankers in the Islamic financial services industry in Malaysia. Practical implications This study provides a way in which the recently introduced Islamic Financial Services (Financial Ombudsman Scheme) Regulations 2015 can be better enhanced to cater for internet banking disputes which might require an ODR framework. Originality/value Though there have been numerous studies on the dispute resolution framework in the Islamic banking industry in Malaysia generally, the current study focuses on a less explored framework – ODR– a new framework for handling banking disputes. Emerald 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/66115/2/66115%20Prospects%20of%20an%20online%20dispute%20resolution.pdf application/pdf en http://irep.iium.edu.my/66115/3/66115%20Prospects%20of%20an%20online%20dispute%20resolution%20SCOPUS.pdf Oseni, Umar A. and Omoola, Sodiq (2017) Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis. Journal of Financial Regulation and Compliance, 25 (1). pp. 39-55. ISSN 1358-1988 https://www.emeraldinsight.com/doi/abs/10.1108/JFRC-07-2016-0055 doi/full/10.1108/JFRC-07-2016-0055#
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	KPG Malaysia
spellingShingle	KPG Malaysia Oseni, Umar A. Omoola, Sodiq Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis
description	Purpose This study aims to examine the prospects of using an online dispute resolution (ODR) platform for resolving relevant Islamic banking disputes in the usual banker–customer relationship in Malaysia. It is argued that through proper regulation, such innovative dispute management mechanism would not only address some legal risks associated with banking disputes but could also prevent reputational risks in the Islamic financial services industry. Design/methodology/approach Based on an internet survey, responses were obtained from about 109 respondents in Malaysia. The data obtained were subjected to multivariate statistical analyses considering factors such as access to justice, attitude of stakeholders, resolving disputes, practical issues and understanding of ODR. Findings The results obtained showed that “access to justice”, “attitude of stakeholders” and “resolving disputes” are the most influencing factors affecting the intention to use ODR among stakeholders, particularly customers and bankers in the Islamic financial services industry in Malaysia. Practical implications This study provides a way in which the recently introduced Islamic Financial Services (Financial Ombudsman Scheme) Regulations 2015 can be better enhanced to cater for internet banking disputes which might require an ODR framework. Originality/value Though there have been numerous studies on the dispute resolution framework in the Islamic banking industry in Malaysia generally, the current study focuses on a less explored framework – ODR– a new framework for handling banking disputes.
format	Article
author	Oseni, Umar A. Omoola, Sodiq
author_facet	Oseni, Umar A. Omoola, Sodiq
author_sort	Oseni, Umar A.
title	Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis
title_short	Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis
title_full	Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis
title_fullStr	Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis
title_full_unstemmed	Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis
title_sort	prospects of an online dispute resolution framework for islamic banks in malaysia: an empirical legal analysis
publisher	Emerald
publishDate	2017
url	http://irep.iium.edu.my/66115/ http://irep.iium.edu.my/66115/ http://irep.iium.edu.my/66115/ http://irep.iium.edu.my/66115/2/66115%20Prospects%20of%20an%20online%20dispute%20resolution.pdf http://irep.iium.edu.my/66115/3/66115%20Prospects%20of%20an%20online%20dispute%20resolution%20SCOPUS.pdf
first_indexed	2023-09-18T21:33:48Z
last_indexed	2023-09-18T21:33:48Z
_version_	1777412686606237696

Prospects of an online dispute resolution framework for Islamic Banks in Malaysia: An empirical legal analysis

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