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

Authors

  • Juwairiah Mohamad Islamic Business School Universiti Utara Malaysia, Malaysia
  • Muhammad Fakhirin Che Majid Islamic Business School Universiti Utara Malaysia, Malaysia

DOI:

https://doi.org/10.32890/ijms2016.23.1.1

Keywords:

Islamic banking products, non-Muslim customers, acceptance

Abstract

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.

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References

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Published

27-06-2016

Issue

Vol. 23 No. 1 (2016): International Journal of Management Studies (IJMS) Vol. 23, No. 1 June 2016

Section

Articles

Research impact

Harvested 2026-09-20
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Identifiers DOI 10.32890/ijms2016.23.1.1 OpenAlex W7071716337 Semantic Scholar CorpusID 291812602