scholarly journals IDENTIFYING THE FACTORS DETERMINING OF MUSLIMS’ INTENTION TO ADOPT ISLAMIC BANKING IN THE LOCAL REGION: RELIGIOSITY AS MODERATING VARIABLE

2020 ◽  
Vol 8 (2) ◽  
pp. 482-487
Author(s):  
Isnurhadi ◽  
Zakaria Wahab ◽  
Fida Muthia ◽  
Abdul Bashir
Keyword(s):  
Social Influence ◽  
Local Region ◽  
Primary Data ◽  
Islamic Banking ◽  
Intention To Use ◽  
Islamic Banks ◽  
Muslim Community ◽  
Intention To Adopt ◽  
Factors Influencing ◽  
Independent Variable

Purpose of the study: This paper investigates factors that influence the Muslims’ intention to adopt Islamic banking and to examine whether religiosity moderates the effect of those factors toward the Muslim's intention to adopt Islamic banking in South Sumatera. Methodology: Primary data collected from six towns/districts in South Sumatera are obtained through questionnaires with the total respondents of 300. Using multiple regression analysis, we test whether attitude, social influence, bank reputation, and compliance on Islamic principles can affect the Muslims’ intention in using Islamic banking. Main Findings: We further crosscheck our findings through an interview with some of the respondents. We find that attitude, reputation, and compliance affect the intention to adopt Islamic banking significantly, whereas social influence is found to be insignificant. Our further finding explains that religiosity, which is represented by the dimension of Syariah and Ahlaq, cannot moderate the effect of an independent variable on the dependent variable. Implications of this study: This implies that in increasing Islamic bank market share, managers of Islamic banks and also government cannot solely depend on religious factors. Our findings give insights to practitioners and regulators on what factors can affect Muslims’ intention to use Islamic banking. Novelty/Originality of this study: This study contributes as it extends the existing literature, any factors influencing the interest and intention of the Muslim community to adopt sharia banking as their banking activities. Some studies look at the direct effect of religiosity toward Islamic banking, however, it is different from previous studies because we put religiosity as a moderating variable.

scholarly journals What keeps Islamic mobile banking customers loyal?

2019 ◽  
Vol 10 (2) ◽  
pp. 525-542 ◽  
Author(s):  
Mohamed Asmy Bin Mohd Thas Thaker ◽  
Md Fouad Bin Amin ◽  
Hassanudin Bin Mohd Thas Thaker ◽  
Anwar Bin Allah Pitchay
Keyword(s):  
Customer Satisfaction ◽  
Customer Service ◽  
Mediating Effect ◽  
Primary Data ◽  
Islamic Banking ◽  
Intention To Use ◽  
Mobile Banking ◽  
Continuance Intention ◽  
Banking Services ◽  
Content Type

Purpose This study aims to find important factors of Malaysian Islamic banking customers’ loyalty or continuance intention to use Islamic mobile banking services. Design/methodology/approach The primary data are collected from the survey administered to 250 customers in the Klang Valley and the analysis is conducted using partial least squares (PLS). Findings Based on the findings, continuance intention of using Islamic mobile banking services was found to be depended on the usability of mobile banking services, customer service provided by Islamic banks towards mobile banking services, customer satisfaction on mobile banking services and trust of customers towards mobile banking services. In addition, the mediating effect of Islamic mobile banking services continuance adoption is significantly influenced by customer satisfaction and trust. Research limitations/implications The sample size and area of study become the obvious limitations, and interpretation of the results and conclusion cannot be as generalised. In addition, as the respondents of this study are existing customers who have used Islamic mobile banking services at least once, relying on the perception of one key informant might imply cognitive biases. Besides, the use of current factors might limit the ability to explore other potentially important determinants of the customers’ continuance intention in using Islamic mobile banking services. Practical implications By understanding these continuance intention factors amongst the customers, it would help the industry player particularly Islamic banking to plan and strategise appropriate policies and support necessary programmes on diversifying and promoting financial transaction using mobile banking services amongst their existing and potential customers. Originality/value This paper offers an additional literature on Islamic mobile banking, especially from the Malaysian context. There is a lack of study that focuses on loyalty towards Islamic mobile banking services. The paper is considered to be the first attempt to examine the factors that influence Malaysian Islamic banking customers’ loyalty or continuance intention to use Islamic mobile banking services.

scholarly journals Customer Perception Regarding Car Loans in Islamic and Conventional Banking

2012 ◽  
Vol 2 (6) ◽  
pp. 174
Author(s):  
M. Taimoor Hassan ◽  
Mehtab Ahmed ◽  
Muhammad Imran ◽  
Azhar Naeem ◽  
Mudassir Waheed ◽  
...  
Keyword(s):  
Key Words ◽  
Statistical Technique ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Chi Square ◽  
Customer Perception ◽  
Conventional Banks ◽  
Corporate Customers

Purpose: To see the customer perception regarding car loans in Islamic and conventional banking. Methodologies: This study is based on primary data. These followed by only Bahawalpur corporate customers are taken as the sample research. Firstly the persons have been identified of the selected banks that are the financial affairs of those banks. When these people show their willingness then questionnaire has been filled by them and the required data has been collected. The statistical technique chi-square had been adapted for analysis the data. Findings: Total 120 questionnaires have been distributed among different banks and out of which 104 were get completed and returned. Peoples prefer conventional banks for car loans as compared to Islamic banks.   Key Words: Islamic Banking, Corporate Customer, Car Financing.

scholarly journals Examining Factors Influencing Customer Intention to Use Islamic Home Financing: A Study in UTM

2018 ◽  
pp. 648-653
Keyword(s):  
Theory Of Reasoned Action ◽  
Reasoned Action ◽  
Subjective Norms ◽  
Intention To Use ◽  
Product Knowledge ◽  
Islamic Banks ◽  
Determinant Factors ◽  
Islamic Bank ◽  
Factors Influencing ◽  
Religious Obligation

Islamic home financing is a kind of product offered by Islamic banks, which is based on the principle of Sharia. Using the Theory of Reasoned Action (TRA) as basis, this study examine factors that influence customers intention in using Islamic home financing. 342 usable surveys are obtained from Islamic bank customers which are the staff in UTM. There are six determinant factors which are attitudes, subjective norms, religious obligation, price and product knowledge were tested. The outcomes show that attitude, religious obligation and product knowledge significantly influenced customers’ intention to use Islamic home financing while price and subjective norms are not significant. The results would help bankers to improving the strategies about the factors that they need the effective market Islamic home financing products in order to be more competitive and known to customers.

scholarly journals Determinant of Customers’ Intention to Use Islamic Banking (Case Study in Jayapura City)

IKONOMIKA ◽  
2020 ◽  
Vol 5 (1) ◽  
pp. 55-70
Author(s):  
Ira Eka Pratiwi (IAIN Fattahul Muluk Papua, Indonesia) ◽  
Fachrudin Fiqri Affandy (IAIN Fattahul Muluk Papua, Indonesia) ◽  
Abdul Karman (IAIN Fattahul Muluk Papua, Indonesia)
Keyword(s):  
Social Influence ◽  
Reliability And Validity ◽  
Internal Consistency Reliability ◽  
Capital City ◽  
Islamic Banking ◽  
Intention To Use ◽  
Face To Face ◽  
Dependent Variables ◽  
Structured Questionnaire

This study investigates the influence of faith, social influence, regulation, and bank functions on the intention to use Islamic banking. The study used quantitative method and the data was collected using a structured questionnaire. The sample consisted of 200 customers of one of the largest Islamic bank in Indonesia: Bank Mandiri Syariah, which is located in Jayapura, the capital city of Papua Province. The data were obtained by random sampling using through a face-to-face survey. The internal consistency reliability and validity test indicated that all scale items were proven reliable and valid. The multiple regression linear was used to analyze the influence of independent variables toward dependent variables. This study suggested that faith significantly affected the customers intention to use Islamic banking. Meanwhile, social influence, regulation, and bank functions did not show a significant influence on customers’ intention to use Islamic banking.Key words : Islamic Banking; Faith; Social Influence; Regulation; Bank Function

scholarly journals Analisis Rasch Pada Atribut Perbankan Syariah: Studi pada Generasi Milenial

2019 ◽  
Vol 5 (3) ◽  
pp. 145
Author(s):  
Anggiya Rossana ◽  
Egi Arvian Firmansyah
Keyword(s):  
University Students ◽  
Market Share ◽  
Rasch Analysis ◽  
Primary Data ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
Finance Industry ◽  
Potential Customers

The presence of Islamic banking in Indonesia is one form of progress and development of the Islamic finance industry in Indonesia. However, for more than 20 years, Islamic banking has apparently not been able to grow optimally and experienced a slowdown in its growth. Islamic banks need to increase their market share and also need to identify which attributes are most considered by the potential customers, especially the millennials whose number is large. This study aims to find out which attributes are most considered in using Islamic banking services. This study uses primary data by distributing online questionnaires to 180 university students in Bandung, namely Unpad, ITB and UPI students. To analyze the data, Rasch analysis was used. The results of Rasch analysis show that cleanliness, friendliness, and Islamic principles turned out to be the most considered attributes in selecting Islamic banking in Indonesia. Given that these three attributes are the most considered, it is expected that Islamic banking strengthen these three aspects in order to increase the market of Islamic finance industry markets.

scholarly journals BANK RUN AND STABILITY OF ISLAMIC BANKING IN INDONESIA

2017 ◽  
Vol 3 (1) ◽  
pp. 25-60 ◽  
Author(s):  
Rahmatina A. Kasri ◽  
Tika Arundina ◽  
Kenny D. Indraswari ◽  
M. Budi Prasetyo
Keyword(s):  
Factor Analysis ◽  
Financial Stability ◽  
Banking System ◽  
Bank Runs ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Bank Run ◽  
Banking Stability ◽  
Conventional Banks

Bank run is an important economic phenomenon which increasingly occurred in in modern banking system and potentially threatened banking stability as it could trigger a banking crisis. However, most studies related to bank run focus on the occurrence of bank run in conventional banking system. Very few of them discuss the bank run phenomenon under Islamic banking system or dual banking system where Islamic banks jointly operating with conventional banks. Therefore, this study attempts to analyze the determinants of bank run in the Indonesian Islamic banking industry by employing primary data from 256 customers of Indonesia Islamic banks in 2015 and by utilizing factor analysis and descriptive statistics. In theory, Islamic banks tend to be more resilient towards any macroeconomic or financial shocks as compared to conventional banks due to the nature of its asset-based and risk-sharing arrangement. However, the result exhibits that both psychological and fundamental factors (i.e. macroeconomics and bank fundamentals) strongly influence the behaviors of Islamic banking depositors to withdraw their funds, which might trigger the occurrence of bank runs in the country. Insider information, macroeconomic condition and bank fundamental factors are also shown to have the highest impacts among all variables. Hence, in the context of banking stability, the finding implies that Islamic banks are not completely immune to the impacts of macroeconomic shocks or financial crisis. As a country with a dual banking system, Indonesia had experienced several bank runs since 1990s. Therefore, the findings of the study should provide the policy makers important insight into research based-policy in order to attain financial stability as one of the main economic goals of the country.Keywords: Bank run, Islamic bank, Factor analysis, IndonesiaJEL Classification: C83, G21, G28

scholarly journals Analisi Persepsi Dosen Terhadap Perbankan Syariah (Studi Kasus Dosen Fakultas Ekonomi UMN)

2019 ◽  
Vol 4 (2) ◽  
pp. 436
Author(s):  
Mawaddah Irham
Keyword(s):  
Qualitative Method ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Islamic Bank

<p align="center">Perception is the process of one's interpretation of the environment, in this case the perception of Islamic banking. The purpose of this study was to determine how perceptions of UMN economics lecturers on Islamic banking. The method used is a qualitative method. The data used are primary data in the form of a questionnaire. The results of the study provide data that 70% of informants agree with the principles of Islamic banks, that is monotheism. 40% of informants stated neutral and 33% agreed to Islamic bank operations and 44% stated neutral and 40% agreed to the objectives of Islamic banks.</p>

scholarly journals A Study on the Customer’s Acceptance Towards Islamic Banking Products Among Non-Muslim in Dual Banking System

2016 ◽  
Author(s):  
Juwairiah Mohamad ◽  
Muhammad Fakhirin Che Majid
Keyword(s):  
Banking System ◽  
The Self ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Muslim Community ◽  
Positive Perception ◽  
Conventional Banks ◽  
Muslim Communities ◽  
The Relationship ◽  
Self Administered Questionnaire

Islamic banking products (IBP) are offered not only to the Muslim community, but also to communities of other religions who are free to choose products depending on their convenience. According to a report, the percentage of non-Muslim communities choosing IBP in Malaysia has been steadily increasing and is expected to continue to increase in future. The Dual Banking System is one of the initiatives that has been created in conventional banks as an extra facility for the communities to engage with IBP easily without going to Islamic Banks. This paper aims to study the factors that drive non-Muslim customers to accept IBP. Specifically, this paper examines the relationship between four factors: knowledge, understanding, perception and the level of awareness among non-Muslim customers regarding their acceptance on IBP in the Dual Banking System. About 140 non-Muslim IBP customers of the Dual Banking System around Changlun, Jitra and Alor Setar were selected based on convenience and were randomly picked as respondents of this study. Some data were also collected through interviews with the bank personnel and the bank’s customers besides the self-administered questionnaire survey. Employing the SPSS approach, the hypotheses of the study were tested. The findings showed that there are significance relationships between customer’s knowledge, understanding, positive perception, and the level of awareness perceived among non-Muslim customers and their acceptance of IBP.   Keywords: Islamic banking products; non-Muslim customers; acceptance.

Sharia’h practice at Islamic banks in Pakistan

2018 ◽  
Vol 9 (3) ◽  
pp. 274-289
Author(s):  
Muhammad Tariq Majeed ◽  
Abida Zainab
Keyword(s):  
Risk Sharing ◽  
Banking Sector ◽  
Islamic Law ◽  
Banking Industry ◽  
Supervisory Board ◽  
Primary Data ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type

PurposeIslamic banks provide an alternative financial system based on Sharia’h (Islamic law). However, critics argue that operation at Islamic banks is violating Sharia’h particularly in terms of provision of interest free services, risk sharing and legal contract. The purpose of this paper is to empirically evaluate the Sharia’h practice at Islamic banks in Pakistan by considering some basic principles of Sharia’h. Design/methodology/approachPrimary data are collected from 63 branches of Islamic banks in Pakistan. Questionnaire is used as an instrument. The study uses structural equation modeling that includes confirmatory factor analysis and regression analysis. Data are codified and analyzed using SPSS and Amos. FindingsThis study finds that Islamic banks are providing interest free services, ensuring that transactions and contracts offered by Islamic banks are legal and offering conflict-free environment to customers. In contrast, estimated results expose that Islamic banks are not sharing risk and Sharia’h supervisory board is not performing its role perfectly. Similarly, it is found that organization and distribution of zakat and qard-ul-hassan are weak at Islamic banks. Research limitations/implicationsData are collected from Islamabad federal capital of Pakistan that hold just 5 per cent share of Islamic banking industry. This small share may not provide true picture of Islamic banking sector. Practical implicationsTo ensure risk sharing, Islamic banking industry must consider the development of new modes of financing and innovation of more products based on Sharia’h. State Bank of Pakistan should ensure separate regulatory framework that enable Islamic banks to provide qard-ul-hassan, organize and allocate zakat. Originality/valueThis paper discusses the perception of bankers, who are actually the executors, about Shariah’s practices at Islamic banks in Pakistan. There are not many discussions on this topic that could be found, and hence this could be considered as a significant contribution by this paper to the existing literature of Islamic finance.

Intention to use e-banking services in the Jordanian commercial banks

2018 ◽  
Vol 36 (3) ◽  
pp. 557-571 ◽  
Author(s):  
Saad Ghaleb Yaseen ◽  
Ihab Ali El Qirem
Keyword(s):  
Social Influence ◽  
Commercial Banks ◽  
Longitudinal Research ◽  
Explanatory Power ◽  
Future Research ◽  
Intention To Use ◽  
Banking Services ◽  
Content Type ◽  
Factors Influencing ◽  
Actual Use

Purpose The purpose of this paper is to investigate the essential factors influencing the adoption and use of e-banking services as perceived by customers of the Jordanian commercial banks. Design/methodology/approach This paper adapts and modifies the unified theory of acceptance and use of the technology model. Modifications were made to explain intention to use e-banking services. Findings The modified model explained 0.887 of behavior intention variance and 0.516 percent of the intended degree of e-banking services use variance. Three constructs are found to be good predictors: effort expectancy (EE), social influence, and perceived e-banking services quality. Performance expectancy and hedonic motivation are not significant predictors. However, all three predictors were significantly moderated by age only. Research limitations/implications As with any research in the field of IT adoption and consumer behavior, researchers should take into consideration the generalization of their empirical findings. The generalization could be enhanced if future research uses the Jordanian baking sector which includes Jordanian and non-Jordanian banks. Finally, the current research findings are based on the cross-sectional research method. Taking this fact into consideration, the relation between intention and actual use may raise questions. One solution is to study intention and actual use at different points in time by conducting longitudinal research to access and test the research hypotheses. Practical implications Managers need to focus on promoting e-banking services in terms of consumer’s EE, social influence, and e-banking service quality. Since young consumers are early adopters, Jordanian banks need to introduce added entertainment values for youth and extra convenience for older consumers. Originality/value The main contributions revolve around developing a better understanding of the essential factors influencing the adoption and use of e-banking services. This research incorporates a new variable: perceived e-banking quality. Thus, the proposed model provides better explanatory power than previous research.

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