Factors Influencing the Preference of Customers Towards Islamic Banking: Evidence from Malaysia

Dawami, Qosdan

doi:10.23917/jisel.v3i1.10191

Cited by 9 publications

(9 citation statements)

References 24 publications

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“…The results of multiple regression to identify the effect of Attitudes, Subjective Based on the probability and coefficient value, hypothesis 1 which reads attitudes have a positive effect on intentions to patronize Islamic banking is accepted. The results of this study support of previous studies which stated that attitude have a positive effect on intention to patronize Islamic banks (Allah Alqasa et al, 2014;Amin, 2017;Ayyub et al, 2019;Bananuka et al, 2019;Dawami, 2020;Dzuljastri Abdul & Abduh, 2012;Echchabi & Aziz, 2012;Ganesan et al, 2020;Kaawaase & Nalukwago, 2017;Rahman, 2014;Reni & Ahmad, 2016;Sulaiman et al, 2016) Alqasa et al, 2014;Amin, 2017;Aziz et al, 2018;Bananuka et al, 2019;Dzuljastri Abdul & Abduh, 2012;Echchabi & Aziz, 2012;Ganesan et al, 2020;Halid et al, 2019;Lajuni et al, 2017;Najakh et al, 2018;Rahman, 2014;Reni & Ahmad, 2016). However, this research in line with previous studies which stated that subjective norms have no effect on intention (Ali et al, 2015;Ayyub et al, 2019;Charag et al, 2019;Sulaiman et al, 2016).…”

Section: Regression Resultssupporting

confidence: 90%

“…This explains that the higher the positive response or positive attitude of a person to use Islamic banks, the stronger intention to transact with Islamic banks. Several previous studies found a significant relationship between attitudes towards intention to use Islamic banks (Ganesan et al, 2020;Dawami, 2020;Ayyub et al, 2019;Bananuka et al, 2019;Kaawaase & Nalukwago, 2017;Amin, 2017;Sulaiman et al, 2016;Reni & Ahmad, 2016;Alqasa et al, 2014;Rahman, 2014;Echchabi & Aziz, 2012;Dzuljastri Abdul & Abduh, 2012). Furthermore, the results of other studies indicate that attitudes have no effect on customer intentions to use Islamic banks (Halid et al, 2019;Najakh et al, 2018;Ali et al, 2015).…”

Section: Attitudementioning

confidence: 93%

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Why Do Palangka Raya Muslim Societies Patronize Islamic Banks?

2021

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The purpose of this paper is to investigate the constructs of Planned Behavior Theory in selection criteria for Islamic banks employed by Palangka Raya Muslim societies. This is survey based-study conducted on the primary data collected through structured questionnaire. Data are gathered from 124 customers of Islamic banks in Palangka Raya. This research uses multiple regression with attitude, subjective norm, and perceived behavioral control as independent variables. The results reveal that attitude and perceived behavioral control has a positive influence on intention to patronize Islamic banks in Palangka Raya. While subjective norms have no influence. This study implies that Islamic banks in Palangka Raya should be more active in portraying themselves in good image of the Islamic banking practice. Establishing a good image plays significant role in determining the attitude of the customers about Islamic banking services. Islamic banks must provide the best experience to customers to be more loyal.AbstrakTujuan dari makalah ini adalah untuk mengetahui konstruksi teori perilaku yang direncanakan dalam kriteria pemilihan bank syariah pada masyarakat Muslim Palangka Raya. Studi ini berbasis survei yang dilakukan terhadap data primer yang dikumpulkan melalui kuesioner terstruktur. Data dikumpulkan dari 124 nasabah bank syariah di Palangka Raya. Penelitian ini menggunakan regresi berganda dengan variabel sikap, norma subjektif, dan kontrol perilaku yang dipersepsikan sebagai variabel bebas. Hasil penelitian menunjukkan bahwa attitude dan perceived behavioral control berpengaruh positif terhadap niat untuk menggandeng bank syariah di Palangka Raya. Sedangkan norma subjektif tidak berpengaruh. Penelitian ini mengimplikasikan bahwa bank syariah di Palangka Raya harus lebih aktif dalam menampilkan citra diri yang baik dalam praktik perbankan syariah. Membangun citra yang baik berperan penting dalam menentukan sikap nasabah terhadap layanan perbankan syariah. Bank syariah harus memberikan pengalaman terbaik kepada nasabah agar lebih loyal.

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Section: Regression Resultssupporting

confidence: 90%

Section: Attitudementioning

confidence: 93%

Why Do Palangka Raya Muslim Societies Patronize Islamic Banks?

2021

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“…Nevita & Arifin (2015) have stated that religious factors or perceptions that are only based on religious reasons do not necessarily affect people's behavior towards decisions in using a type of banking service. This also agrees with the research conducted by Dawami (2020), Butt et al (2018), Lajuni et al (2017), Bodibe et al (2016), Ali et al (2015), Pepinsky (2010) and Adawiyah (2010) stated that religion is not the main factor to attract consumers using Islamic banks, but there are other important factors in marketing Islamic banking. And the interesting thing is consumers have done something they liked rather than did something because of the need for obligations.…”

Section: Islamic Banking: Reality and Hopesupporting

confidence: 89%

Economic Pragmatism of Yogyakarta Muslim Community in Selecting Banking Institutions

Aviva

Ardiansyah

Hanafi

2020

INFSL3

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This research discusses the motives of the Muslim community in choosing banking institutions by using the analysis of pragmatism theory. This research is qualitative research using a phenomenology approach. Data collection that is used in this research is the interview, observation, and documentation. The result of the study indicated that the Muslim’s customer of Yogyakarta tend to be pragmatic due to the character of society which has more accommodating and flexible philosophy of life (tolerance). This pragmatic attitude was influenced by the internal factors (cognitive limitations) and external factors (reputation and service of Conventional Banks). Furthermore, adopting from the theory of Schutz’s motives that the motives reason (because of motive) of Yogyakarta's Moslem customers in choosing to the bank are their inconsistency in choosing is influenced by economic and service motives that are stronger than religious motives. As for their destination motive (in order to motive) namely fulfilling their needs.

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“…Customers' attitudes have been identified as one of the most important factors influencing Islamic banking business (Dawami, 2020). Customers' behavior and Islamic bank qualities are closely related to banks' competitiveness (Utami et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

Bank Specific and Macroeconomic Factors Influencing Islamic Banks Deposits

Rahman

Ahmad

Arshad

2021

International Journal of Islamic Business

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Deposits are like the bloodline for banks as they determine banks' lending capacity and a country's economic savings. However, the existence of a dual banking system poses a challenge to Malaysian Islamic banks competing for deposits. Despite this problem, few investigations were done to comprehensively identify the factors that could help banks attract deposits, particularly for Islamic banks. The purpose of this paper is to fill this gap on deposits of 16 Islamic banks in Malaysia. Secondary data from the bank's annual reports and the Department of Statistics of Malaysia from 2015 to 2019 were analyzed, comprising Islamic Bank Deposits and seven predictors in an empirical model using STATA. The result shows a strong model fit with 92% R squared value that Return on Assets, bank concentration, and Business Enterprise Depositor affect Islamic Bank Deposits positively and significantly while Capital Adequacy Ratio showed negative and significant influence on the deposits. These factors are strongly effective to deposits, significant at 1% level. In contrast, Financing Deposit Ratio and Gross Domestic Product do not significantly influence Islamic deposits. Contrary to economic theory, this study found that an increase in inflation encourages customers to increase their saving deposits in Malaysian Islamic banks. The findings from this study are unique to Malaysian Islamic banks. They indicate important policy implications for Islamic banks practitioners, namely, to increase their focus on business enterprise customers, improve bank's market share and profitability in order to increase deposits while taking advantage of high inflationary period to attract more depositors.

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Factors Influencing the Preference of Customers Towards Islamic Banking: Evidence from Malaysia

Cited by 9 publications

References 24 publications

Why Do Palangka Raya Muslim Societies Patronize Islamic Banks?

Why Do Palangka Raya Muslim Societies Patronize Islamic Banks?

Economic Pragmatism of Yogyakarta Muslim Community in Selecting Banking Institutions

Bank Specific and Macroeconomic Factors Influencing Islamic Banks Deposits

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