Ez Ar Rahnu / Nur Hanani Aqilla Hairuddin … [et al.]

Ar Rahnu, an Islamic pawn broking for short-term collateralized borrowing is one of the special segment of the Islamic financial services offered by Banks. The Islamic Pawn broking Industry in Malaysia has grown to almost RM5 billion a year as reported by the Malaysian Gold Association (MGA) I n 2015. One of the issues in the industry is the absence of a.clear justification of the ujrah fee rate charged by the bank and pawnshop. Currently, the existing system provided by Bank Muama'lat Ar Rahnu is very general where the customers can only know the gold’s value with some other information rather than the exact calculation of the safekeeping fees. As a result, they have to calculate it by themselves manually or just make the payment as informed by the bank’s officer without knowing the exact calculation of the safekeeping cost. Hence, we put forward an innovation of a new software that will ease Bank Muamalat’s customers and the product is called Ez Ar Rahnu. This innovation enables customer to know why they need to pay the given amount and how the calculation is done as they are not being exposed on that by the banking institution. It is hoped that this innovation complement customers' needs as it is easier for them to set aside their money as expenses for their gold investment. Perhaps more people will be interested in gold investment with the aid of this software.