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Thematic Analysis Exercise

Developed by
Muhammad Younus
([Link]@[Link])

Q. 3 Do the initial coding and focus coding of the following interview transcripts. Develop two
themes and explain the themes in paragraph form using relevant quotations from the
transcripts. Also a develop a thematic map.
The following extracts are from the transcripts of interviews conducted as part of a qualitative study
investigating the perceptions of Islamic Bank Mangers about Islamic Banking in Pakistan.

Transcript of Respondent One’s Interview (I: Interviewer R: Respondent)

I: What are your views on Islamic Banking?

R1: Islamic banking provides us a banking system that fulfills customers’ needs according to the
Shari’ah rules.
I: Islamic or Conventional Banking: which is more favorable banking system for the people of
Pakistan? Why do you think so?
R1: Islamic banking system is more favorable for the people of Pakistan as Pakistan is an Islamic
republic, so it is better for the people to fulfil their banking needs as per the laws and principles of
Islam.
I: What challenges do you feel Islamic Banks face in Pakistan?
R1: Since Islamic banking system is continuously evolving and boosting day by day hence the
problems and challenges are also increasing simultaneously. The biggest challenge faced by us is
the lack of knowledge and understanding about the difference between Islamic and conventional
among the people of our society. Furthermore, another basic problem is the profit-sharing rate
between conventional and Islamic banks. Since profit rate changes every month in Islamic banking
system according to the bank’s earnings whereas it is fixed in conventional banks so it gets difficult
to make customers understand the fluctuations. Another most common challenge is the monitoring
of the funds regulatory system that either it is Shari’ah compliant or not.
I: What can Islamic Banks do to overcome the challenges they are facing now?
R1: Islamic banks should be firm to the principles of Shari’ah and Islamic laws. They should
educate the people of Pakistan regarding the benefits of Islamic banking and the difference between
Islamic and conventional banks by conducting seminars. Furthermore, government of Pakistan
should take some steps to make an act or any institution that will monitor the fund regulation and
core banking system of Islamic banks to make sure the implementation of Shari’ah compliant rules
and compliance with true faith.

Transcript of Respondent Two’s Interview

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I: What are your views on Islamic Banking?

R2: As being a Muslim we should only use Islamic banking. It is not optional but we must follow
Riba free banking as mandatory solution. It is a good initiative that we now have Islamic banking
facilities which are growing.
I: Islamic or Conventional Banking, which is more favorable banking system for the people of
Pakistan? Why do you think so?
R2:95% of the population of Pakistan is Muslim, so I would say that the favorable banking system
should be Islamic banking. For this to take place in 1980s during the government of general Zia an
initiative was taken and after 2002 it is growing till now in double digits.
I: What challenges do you feel Islamic Banks face in Pakistan?
R2: The biggest challenge that we face is that the customers we have to deal with are not true
Muslims in regard to their actions. They are simply Muslim by name. So sometimes when the rate
of return is low the customers refuse to do Islamic banking, even if we guide them that this a halal
way with no Riba but still they reply by saying that I want more returns. Furthermore, we have
regulatory challenges which means that there is still no standardization among all the Islamic banks
and liquidity management challenges where Islamic banks are unable to manage liquidity well as
compared to skillful conventional banks. Another challenge is the right combination of knowledge
about Islamic banks and banking so we face difficulties at the time of hiring we are unable to find
right personnel as no university is offering specialization degrees in this field currently.
I: What can Islamic Banks do to overcome the challenges they are facing now?
R2: We are growing and trying to overcome these challenges with the help of State Bank. IBA,
LUMS, CBM and other universities are educating the new generation about Islamic banking. So I
think whatever the challenges we have now are being addressed and resolved gradually. Within 5-
10 years we will overcome the current challenges.

Transcript of Respondent Three’s Interview

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I: What are your views on Islamic Banking?

R3: According to me, Islamic banking is a system of conducting banking activities according to the
Shari’ah. It was recently revived by Mr. Taqi Usmani, who has brought a large number of Islamic
financial structures and products based upon those shari’ah compliant structures that are parallel to
conventional banking system’s products. However, these products are in accordance with the
Islamic teachings.
I: Islamic or Conventional Banking, which is more favorable banking system for the people of
Pakistan? Why do you think so?
R3: I think Islamic banking should be favored by the people because we all are Muslims. We live in
a country which was formed and created in the name of religion Islam. Therefore, all our activities
whether social or financial should be according to the teaching of our religion. We should do what
our religion has asked us to do and we should also refrain from doing prohibited activities.
I: What challenges do you feel Islamic Banks face in Pakistan?
R3: The challenge face by Islamic banks which I have noticed is that there is no support and
encouragement of the people. A large portion of our population lacks knowledge about the basic
working of an Islamic bank. This is why many people say that Islamic banks are making people
fools the name has been changed and a bank is a bank. The name has been changed to gain
customers but all the other operations are the same as conventional banks. These remarks by such
ignorant people cause a damaging image as it is hard to change the mentality of our society.
I: What can Islamic Banks do to overcome the challenges they are facing now?
R3: We can overcome by setting up a system of standardization that is same all over Pakistan
regarding Islamic activities just like Middle Eastern countries. This can be done with the help of the
state bank of Pakistan. The most important step which is required to overcome many of our
problems is to give knowledge and proper education about Islamic banks and the working of
Islamic banks to the people so that all the misconceptions are cleared.

Example of Initial Coding, Focus Coding and Theme Development

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Respondent 1 Respondent 2 Respondent 3 Focus Codes

Islamic Banks should Sate Bank is helping a system of Educate people about
strictly follow sharia IB standardization IB
needed
Educate people about Universities are Need to educate Set up a regulatory
IB offering degrees in IB people about IB body for
standardization
Govt should set up a Universities are
regulatory body for IB offering degrees in IB

Theme Development
Focus Codes Themes
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Group 1: Educate people about IB, Set up a Theme 1: Ways to promote Islamic Banking in
regulatory body for standardization, Pakistan
Universities are offering degrees in IB
OR
Measures/Suggestions for the
development/promotion of Islamic Banking in
Pakistan
Group 2: Theme 2:
Group 3: Theme 3:

Example of Discussing a Theme in Paragraph Form

Theme 1 - Ways to promote Islamic Banking in Pakistan
One of the major themes that we identified in the data is the ways to promote Islamic Banking in
Pakistan. The respondents identified important ways that can be utilized by the banks and the
government in order to promote Islamic Banking in the country.
The majority of the respondents suggested that Islamic banks need to educate people about the
principles of Islamic Banking and the differences between the conventional and Islamic banks. This
could be done through marketing campaigns and seminars, as Respondent 1 said ‘They should
educate the people of Pakistan regarding the benefits of Islamic banking and the difference between
Islamic and conventional banks by conducting seminars.’
It was also suggested by the respondents that a regulatory body also needs to be set up in order to
monitor the operations of the Islamic Banks in the country to ensure they follow the Islamic
Banking principles, as Respondent 2 explained ‘Government of Pakistan should take some steps to
make an act or any institution that will monitor the fund regulation and core banking system of
Islamic banks.’
…………… Discuss the third focus code here in the same way………………….
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Example of a Thematic Map

Educating People
about IB

Ways for Setting up a

Promoting IB Regulatory Body

Universities
offering Degrees
IB Managers' in IB
Perceptions about
IB in Pakistan
Focus Code 1

Theme 2 Focus Code 2

Focus Code 3