Analysis of Participation Banks Through Business Model Value Propositions

Abstract

The aim of this work is to compare participation and conventional banks in terms of value propositions taking place in business model canvas. By this way, we identify successful and unsuccessful points of participation banks. Then, we present possible reasons behind these points. Astly, we offer solution proposals. While conducting this research, in contrast to general tendency in current literature, we make quantity and ratio analysis of the items taking place under value propositions of business model canvas instead of running financial ratio analysis by statistical methods. The work includes all participation and conventional banks as of July 2017. The necessary data is gathered from Banking Regulation and Supervision Agency of Turkey. In result of our analysis, the main findings are as follows; the share of participation banks is around %5 in terms of credits and assets whereas the ratio is higher regarding business, cash SME, housing and especially vehicle credits. The item which brings participation banks down is consumer credit/loan. In terms of deposits, they are slightly better than their position for credits with around %6 share. Regarding amount of depositors, the share is again around %5. Deposits in TL and foreign exchange, the share is closer to general deposit share, however, participation banksa re having almost %20 share in precious metal accounts. The results show that product range is very important for them to have better position in the market.