Intention to Use Islamic Banking Products and Its Determinants

As there is an increasing trend of Muslims and non-Muslims accepting Islamic banking, it is crucial to reconnoitre customers’ intention to use Islamic banking products. Such rationale is based on theoretical foundation and empirical evidence that customers’ perception towards a particular product wo...

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Bibliographic Details
Published in:International journal of economics and financial issues 2017-03, Vol.7 (1), p.329-333
Main Authors: Nelson Lajuni, Winnie Poh Ming Wong, Yusman Yacob, Hiram Ting, Alfera Jausin
Format: Article
Language:English
Subjects:
attitude
government support
intention
islamic bank
pls-sem
product pricing
religious obligation
social influence
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Summary:As there is an increasing trend of Muslims and non-Muslims accepting Islamic banking, it is crucial to reconnoitre customers’ intention to use Islamic banking products. Such rationale is based on theoretical foundation and empirical evidence that customers’ perception towards a particular product would lead to their intention to choose that product. The purpose of this study is to examine the determinants of intention to use Islamic banking products in an emerging and vibrant market. 200 copies of questionnaires were distributed, 131 usable copies were subsequently collected. The data were then analysed using PLS-SEM. The findings show that attitude, government support, and social influence possess explanatory and predictive capacity to envisage customers’ intention to use Islamic banking products. As banking service is localized to better serve the customers, this study extends the literature by providing insights into the subject matter in emerging markets.
ISSN:2146-4138