Persuasion in Islamic finance

This article explores the mechanisms of persuasion in Islamic finance that may have helped support the growth of this market. Our theoretical model may explain those factors which may influence a customer to select an Islamic financial product. For complex decisions where a person may not fully unde...

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Bibliographic Details
Published in:Australian journal of management 2021-05, Vol.46 (2), p.272-286
Main Authors: Azmat, Saad, Ali, Haiqa, Brown, Kym, Skully, Michael
Format: Article
Language:English
Subjects:
Banks and banking
Decision making
Finance (Islamic law)
Financial risk
Investments
Islam
Islamic financing
Marketing
Religious aspects
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Summary:This article explores the mechanisms of persuasion in Islamic finance that may have helped support the growth of this market. Our theoretical model may explain those factors which may influence a customer to select an Islamic financial product. For complex decisions where a person may not fully understand the background concepts such as with finance or Arabic terminology, product quality may be judged based on information in advertising and prior knowledge. Our model shows that Islamic bankers can use the customer's "coarse thinking" process when advertising products. They may be a means to make products appear more religiously (Shariah) compliant. The equilibrium level of persuasive strategies proposed help reinforces the impact of persuasion for Islamic banks.
ISSN:0312-8962
1327-2020
DOI:10.1177/0312896220926556