Customers Of Islamic Banks Research Articles

Islamic or Conventional Banking

Purpose: The purpose of this research study is to examine the banking preferences of Kuwaiti university students, their preferences between Islamic and conventional, the reasons supporting their choice and, as a measure of satisfaction, the likelihood of them recommending their bank to their friends and family. Design/methodology/approach: We conduct a short survey among undergraduates using a 4-item paper questionnaire physically distributed and collected at a Kuwaiti business school. The large response (n= 503) is analysed and descriptive statistics used to present the results Findings: Results indicate a majority prefer Islamic banking and that the main reason for this is their religion. Those students who opted for conventional banks gave social reasons such as recommendation for their choice. A higher level of satisfaction was recorded for Islamic banking customers. We conclude that Islamic banks have managed to match their ethical and religious appeal with the delivery of efficient and convenient banking services that are valued by the student segment. Practical Implications: Our results are of interest to those offering retail banking services in binary markets where conventional banks compete with Islamic banks in addition to researchers in this domain. For Islamic banks, the significance of maintaining a strong reputation with the underpinning of robust Shariah principles is emphasized. Originality: The paper contributes fresh understanding to the acceptance of and satisfaction with Islamic banks and their products and services among a strategically important segment. It provides evidence suggesting a bright future for Islamic banking in Kuwait and the wider Gulf region.

Factors Influencing Generation Z Students in Banten Province to Use Sharia Mobile Banking in 2024

Generation Z, born in the digital era, has become increasingly reliant on mobile banking services for financial transactions. This shift in consumer behavior towards digital transactions is accelerating in Indonesia, particularly in Banten Province, where Sharia Banks are expanding their market penetration. The adoption of Islamic Mobile Banking is influenced by perceived ease, convenience, and benefits. The ease of access and financial benefits obtained are determining factors for customers to use the service. This research aims to explore the factors affecting Generation Z students' interest and behavior in using Sharia mobile banking services at Islamic Banks in Banten Province in 2024. The study uses a quantitative research method, focusing on all Generation Z customers of Islamic Banks in Banten Province. The sample size is 100 people, providing a fairly representative sample. The research aims to provide a deeper understanding of consumer preferences in Islamic finance and contribute to the development of Islamic banking services that are more in line with the needs of students in the region.

Factors determining the adoption of mobile banking in Ethiopian Islamic banks: extension of technology acceptance model (TAM)

Purpose This study aims to assess the factors determining the adoption of Islamic mobile banking (M-banking) in Ethiopia. Design/methodology/approach The study area covers the city of Dire Dawa, Harar and Jigjiga, where the Muslim community dominates. A sample of 378 out of 400 respondents who are currently customers of different Islamic banks provide their opinion on questions developed in a Five-point Likert scale indicator. The collected data were analyzed by the least square method and with the help of SPSS version 25. Findings The result of the study revealed that the perceived ease of use (PEOU), perceived usefulness (PU), perceived advantage and trust have a positive significant impact on the adoption of Islamic M-banking. Perceived risk was found to have an insignificant impact on the adoption of Islamic mobile banking in Ethiopia. Research limitations/implications Future researchers in the realm of Islamic mobile banking can expand their investigations in several key areas. Longitudinal and cross-cultural studies could be undertaken to explore how those factors affect over time and in different cultural settings. Practical implications As a policy implication, the study recommends that banks should develop transparent communication and implement robust security measures, emphasize practical benefits, invest in user-friendly interfaces and highlight the relative advantage they provide over others. Originality/value To the best of the authors’ knowledge, this research is considered as the first attempt to examine factors that determine Ethiopian Islamic banking customers to adopt Islamic M-banking services, which was not considered in previous studies.

Determination of Lombok Island Community Preferences to Become Islamic Bank Customers with Religiosity as a Moderating Variable

Islamic banking in Indonesia continues to experience developments marked by increasing assets and market share. However, Islamic banking is still lagging behind conventional banking, including in Lombok Island, where the majority of the Population is Muslim. This study aims to explore the factors that influence the preferences of the people of Lombok Island in choosing Islamic banks, with a focus on the influence of service quality, perception, financial literacy, product knowledge, Islamic branding, and the role of religiosity as a moderating variable in the relationship. This type of research is explanatory research (explanatory research) with a quantitative approach. The Population in this study was Islamic customer banks in Lombok Island, with a sample of 210 respondents determined using Nonprobability Sampling, and the data collection tool used was a questionnaire. Data analysis used Partial Least Squares-Structural Equation Modeling (PLS-SEM). The study results indicate that service quality, perception, financial literacy, product knowledge, and Islamic branding significantly influence the preferences of the Lombok Island community to become Islamic bank customers, as evidenced by the T-Statistic value > 1.96 and P-Value < 0.05. At the same time, religiosity cannot moderate the relationship between service quality, perception, financial literacy, product knowledge, and Islamic branding on the preferences of the Lombok Island community to become Islamic bank customers. Based on this, it is recommended that Islamic banks improve Islamic branding and service quality and hold financial education programs for the community.

Mediating Role Of Brand Image In Digital Marketing And E-WOM On Islamic Bank Customer Decisions

The present study aims to analyze the effects of digital marketing and Electronic Word of Mouth (E-WOM) on brand image, then examine the effects of digital marketing and Electronic Word of Mouth on the decision to be an Islamic bank customer and analyze the effects of digital marketing and Electronic Word of Mouth on the decision to be an Islamic bank customer through brand image as a mediating variable. The research type used in the present study was quantitative, using primary data obtained by distributing questionnaires. By distributing questionnaires, 100 respondent data was found and analyzed using SPSS version 26. The sampling techniques used by the author were the snowball sampling technique and nonprobability sampling. The criteria for the research sample were Islamic bank customers and social media users. Because the size of the research population was unknown, the present study used Lemeshow’s formula. The research results showed that digital marketing had a significant effect on brand image, Electronic Word of Mouth had a considerable effect on brand image, and digital marketing significantly affected the decision to become an Islamic bank customer. In contrast, Electronic Word of Mouth did not significantly affect the decision to be an Islamic bank customer. Brand image positively and significantly affects the decision to become a customer.

You want my loyalty? Treat me fairly! A study of Islamic banking customers in South Africa

Purpose The purpose of this study is to investigate possible drivers of loyalty amongst Islamic banking customers in Gauteng, South Africa. We ponder the relationships of service fairness (a secondorder reflective construct) with perceived value, satisfaction, and loyalty. Design/methodology/approach Data were obtained from Islamic banking customers in South Africa using interview-administered questionnaires. A total of 350 responses were perceived as being suitable for data analysis. The measurement and structural models were measured through structural equation modelling. Findings Service fairness and perceived value were found to be important drivers of loyalty within this context. Research limitations/implications This study demonstrates that service fairness and perceived value are precursors to the future loyalty intentions of Islamic banking customers. As such, they should be nurtured as key elements of the relationship building process. Practical implications The study guides South African Islamic banks and South African banks with Islamic windows to better understand how service fairness (interactional, procedural and distributive) fosters satisfaction, perceived value and loyalty (attitudinal and behavioural). Originality/value Enhancing comprehension of the relationship between service fairness and customer loyalty, with satisfaction and perceived value playing intermediary roles, represents an unexplored avenue in academic research within the context of Islamic banking in an emerging African market.

DO TRUST AND CUSTOMER INTIMACY AFFECT CUSTOMER LOYALTY?

This study aims to identify factors influencing customer loyalty in Islamic Banking customers. One hundred seventy respondents filled out the questionnaire online. The sample collection techniques were purposive sampling and the Structure Equation Model (SEM). The results indicated that customer trust and intimacy positively affect customer loyalty.

Customer loyalty model in Islamic bank: mosque perspective

Purpose This study aims to test the empirical Islamic bank customer loyalty model with the perspective of mosques as customers. Design/methodology/approach The type of research used is quantitative to collect data from mosque customers; 93 questionnaires were analyzed using partial least square-structural equation modeling. Findings This research found a significant relationship between service quality and perceived value, service quality and brand image, perceived value and customer satisfaction, brand image and customer loyalty and customer satisfaction with brand image. Research limitations/implications First, this study only collects data from certain organizations or communities so that further research can develop the model by adding several other communities or organizations. Second, this research does not include several other important variables that influence customer loyalty, such as product innovation and company capabilities. Originality/value Islamic bank customer loyalty models have been widely explored from the perspective of individual customers only. This research offers new attributes that influence customer loyalty models in the context of organizations or communities, namely, mosques.

Comparison of Consumer Ethics Perception of Islamic Banking Customers with Conventional Banking Customers of Turkey: A Study from Turkish Banking System

Abstract Objectives: This study compared consumer ethics perceptions between Islamic and Conventional Banking customers in Turkey and examined the relationship between risk and ethics in both groups. Methods: A survey was conducted with 419 banking customers (276 Conventional, 143 Islamic) between March 2023 and March 2024, using the Risk Perception Scale and Ethical Behaviour Scale, along with demographic and bank usage characteristics. Results: Results showed no significant difference in total risk perception levels between the two groups (p<0.05). Islamic Banking customers exhibited significantly higher levels of passive benefitting, active benefitting, and overall ethics (p<0.05). For Conventional Banking customers, risk perception was negatively correlated with passive benefitting (r=-0.175; p<0.01), active benefitting (r=-0.184; p<0.01), and total ethics perception (r=-0.192; p<0.01). Passive benefitting significantly impacted the risk perception of Conventional Banking customers (OR=-0.06; p<0.05). Among Islamic Banking customers, risk perception was positively correlated only with deceptive legal practices (r=0.170; p<0.05), which did not significantly affect their risk perception (p>0.05). Conclusion: Islamic Banking customers have a higher level of ethical perception and prioritize ethical issues more than Conventional Banking customers. While ethical perceptions significantly influence the risk perceptions of Conventional Banking customers, they do not affect the risk perceptions of Islamic Banking customers. Keywords: Islamic banking, Risk perception, Ethics.

Determinants of Consumption Value on Intention to Use Shariah Mobile Banking: Exploring the Role of Consumer Preference

This study analyzes the use of mobile banking by both Islamic and conventional bank customers using the theory of consumption value. The aim of this research is to evaluate the factors influencing customers' decisions to use dual mobile banking services. The proposed hypothesis is that the intention to use Islamic mobile banking services is influenced by functional, conditional, social, emotional, and epistemic values mediated by consumer preferences. The method used is structural equation modeling with partial least squares (SEM-PLS) with a sample of 191 people, all of whom use both conventional and Islamic mobile banking. The results show that the theory of consumption value does not directly affect the interest in using mobile banking, either conventional or Islamic, except for the emotional value variable. Consumer preferences mediate the effect of functional, conditional, emotional, and epistemic values on the intention to use conventional mobile banking. Meanwhile, conditional, emotional, and epistemic values influence the interest in using Islamic mobile banking, which is mediated by consumer preferences. These findings indicate that the consumer's intention to use mobile banking is influenced by the theory of consumption value regardless of whether the service is Islamic or not. The implication of this research is that Islamic mobile banking services need to improve their service quality by considering consumer preferences and the theory of consumption value, thereby enhancing the usage of services by both conventional and Islamic bank customers.

The Role of Islamic Advertising Ethics and Word of Mouth in Building Brand Awareness of Indonesian Islamic Bank Customers

The Role of Islamic Advertising Ethics and Word of Mouth in Building Brand Awareness of Indonesian Islamic Bank Customers

Phenomenological Study: The Role Of The Financial Services Authority In Resolving Islamic Banking Customer Problems

Problems in the banking world often make customers as disadvantaged parties both materially and immaterially. This certainly encourages customers to make efforts that can avoid losses both in litigation and non-litigation. The purpose of this study is to determine the role of the financial services authority in solving problems experienced by Islamic bank customers. The method used in this study is a qualitative method with a phenomenological approach. Phenomenological studies with data collection methods, namely by observation and interviews. The results of this study show that the financial services authority has an important role in solving customer problems and customer legal protection. The manifestation of the role of the financial services authority can be seen from its authority in terms of taking actions both legally and reprimands to the banking industry to respond and resolve Problems experienced by customers, in addition to their authority in terms of filing claims for compensation or return of customer assets lost due to the bank's fault.

NURTURING CUSTOMERS LOYALTY ON ISLAMIC BANK: THE ROLE OF SATISFACTION AND TRUST AS MEDIATION

Introduction: Customer loyalty is a fundamental point in relational marketing that must be maintained and maintained by service providers. The urgency of nurturing loyalty of customers is the goal of this research, namely by developing a framework of customer loyalty in shariah banks using the antecedents to be tested. Method: A total of 250 Indonesian Islamic bank customers in Central Java were used as respondents taken using a convenience sampling technique. The collected data were tested, and the data were analysed using SEM with the AMOS statistical software. Result: The finding of the study shows from the nine hypotheses, there are six hypotheses accepted and three hypotheses rejected. High intrinsic religiosity of customers will increase customer satisfaction, trust and loyalty. Meanwhile, extrinsic religiosity is only able to make customers believe in Islamic banks, but is unable to influence satisfaction and loyalty. Other findings show that customer loyalty is based on their trust in Islamic bank services but is not directly influenced by satisfaction. Conclusion and Suggestion: Meanwhile, customer trust in Islamic banks is formed because of their satisfaction with the service. Although satisfaction is not significant on loyalty, its impact can affect trust, and trust is the key to increasing loyalty. This study's findings offer a new perspective on Islamic bank marketing strategies. By promoting proper service, product development, and operational excellence, these strategies can help build customer trust.

The Effect Of Service Quality On Customer Interest In Saving At Islamic Banks With Religiosity As A Moderation Variable

This study aims to explore the influence of service quality on customer interest in saving in Islamic banks, with religiosity as a moderation variable. The research method used was multiple regression analysis using primary data from 145 respondents of Islamic bank customers in Southeast Sulawesi. The results of the analysis show that the quality of service has a significant positive influence on customer interest in saving at Islamic banks. In addition, the findings also revealed that religiosity plays a role as a moderation variable that strengthens the relationship between service quality and customer interest. The implication of this study is that Islamic banks need to pay attention to and improve the quality of their services, as well as consider religious values in marketing strategies and product development. Thus, the integration between good service quality and awareness of religious aspects can be an effective strategy in increasing customer loyalty and the overall success of Islamic banks.

Pengaruh Kualitas Pelayanan Bank Syariah Terhadap Kepuasan Mahasiswa Sebagai Nasabah Bank Syariah

Islamic banks, as the name implies, are banks based on Islamic law (sharia) which do not run an interest system in their operations because this is considered a ribawi mechanism. In carrying out its operations, Islamic banks take profits by using a profit-sharing system. The operational activities of Islamic banks do not only focus on raising and channeling funds, but service quality is also an important factor in maximizing profits. The purpose of this study is to determine whether the quality of Islamic bank services has an influence on student satisfaction as Islamic bank customers. And this research consists of two variables, namely service quality and customer satisfaction. This research method uses quantitative methods with regression tests given to 40 respondents with 10 questions.

Cash Waqf: Ethical & sustainable Qard Hasan Microfinancing in Malaysia for B40 & M40 inclusion

This study explores the integration of Qard Hasan with Cash Waqf (QHCW) as a funding source to support microfinancing for the B40 and M40 income groups in Malaysia. The research attempts a mixed-method approach, combining qualitative interviews with quantitative surveys to gather comprehensive data from Islamic bank customers and practitioners. Findings suggest that a well-structured QHCW model focusing on the net proceeds can enhance financial inclusion and economic resilience, particularly in the post-COVID-19 recovery phase.

Do you want my loyalty? Then understand what drives my trust – a conventional and Islamic banking perspective

PurposeThe purpose of this research is to develop an enhanced understanding of the drivers of trust and loyalty in a conventional and Islamic banking setting.Design/methodology/approachThe study’s sample included South African retail bank customers who had Islamic or conventional products and who were 18 years or older. A field services company collected data from respondents through the distribution of self-administered questionnaires and a total of 949 questionnaires were deemed suitable for data analysis. SmartPLS 3.2.7 and Hayes Process Macro for SPSS tested the study’s hypotheses.FindingsComparing conventional banking customers with Islamic banking customers, the path from trust to customer loyalty was statistically significantly different across customer type, while the paths between trust and customer orientation, information sharing, and service fairness were not statistically significantly different across customer type. A closer examination of the path coefficients reveals that the relationship between trust and loyalty is stronger for conventional banking customers than for Islamic banking customers.Practical implicationsThe findings of the study guide both conventional and Islamic banks in South Africa on how banks should redesign their purpose as the providers of financial resources to their customer segments. It highlights the need for these banks to secure a more focused approach on how to deliver financial resources and consulting services to customers in a trusting, engaging and reliable manner.Originality/valueThe study provides insight into Islamic and retail bank customers’ perceptions of the drivers of trust and loyalty and how these constructs’ interrelationships differ between Islamic and conventional banking customers.

The Influence of Product Diversification, Service Quality, and Risk Management of Islamic Banks on Money Market Stability in Indonesia

This study investigates the effect of Product Diversification, Risk Management, and Service Quality of Islamic banks on Money Market Stability in Indonesia. Using quantitative analysis based on Structural Equation Modeling with Partial Least Squares (SEM-PLS), data were collected through a survey of Islamic bank customers. The results reveal significant positive relationships between Product Diversification, Risk Management, Service Quality, and Money Market Stability. Product Diversification positively influences Service Quality and Risk Management, while Service Quality and Risk Management, in turn, positively impact Money Market Stability. The findings underscore the importance of adopting comprehensive strategies to enhance the stability of the money market in Indonesia's Islamic banking sector. These insights have implications for practitioners, policymakers, and researchers aiming to promote financial stability and inclusivity in Islamic finance.

To What Extent Collateral in PLS Financing Brings Maṣlaḥah? An Analytical Comparison from Islamic Law Outlook with Maqāṣid al-Sharī’ah Index

This study aims to compare the level of maṣlaḥah regarding the existence of collateral in Profit and Loss Sharing (PLS) financing from Islamic banking customers and employees standpoints. This is crucial as PLS financing becomes the main characteristic product of Islamic banks, but it emerges as an unfavorable product due to the high financial risk. The existence of collateral plays a pivotal role in this situation to realize maṣlaḥah. This is an explanatory study with a quantitative approach and survey method, considering 400 respondents, particularly 200 Islamic banking customers and 200 Islamic banking employees, who were conveniently obtained at certain time intervals for a one-shot. An Independent sample t-test is used to calculate the comparison level of maṣlaḥah among these two groups. At the same time, Rasch Model analysis is also used to measure the data based on the demographic characteristics of respondents. The result discovers that although there is a slightly different level of maṣlaḥah between Islamic banking customers and employees in PLS finance practice regarding collateral, it still significantly brings benefit, as it aligns with the concept of ta’widh to prevent financial risk. This finding contributes to Islamic banks as a guideline to understand how to operate and enhance the market share of this financing product based on the Rasch Model Analysis.

Does consumer religiosity matter for green banking adoption? Evidence from a Muslim-majority market

PurposeA significant dilemma facing humankind in the present time is environmental degradation. To alleviate the pressure on natural resources, green banking (GB) has been acknowledged as an effective solution. However, creating consumer engagement is still challenging for banks. Hence, the purpose of this study is to investigate the influence of religiosity on GB adoption among Muslim consumers.Design/methodology/approachThe deductive approach was used to explain how GB adoption is affected by the religiosity of the consumer. A total of 332 sample data were collected cross-sectionally from Islamic bank customers in the UAE. Partial least square structural equation modelling (PLS-SEM) via Smart PLS 4 was used to analyse the data. Five dimensions (i.e. ideological, ritualistic, intellectual, consequential and experimental) were used to measure religiosity which served as the independent variable. Customer intention to adopt GB represents the dependent variable.FindingsThe PLS-SEM results revealed that Islamic religiosity affects the adoption of GB among Muslim consumers. Indeed, their religious commitment and beliefs affect the products they intend to adopt and how they intend to do it.Originality/valueTo the best of the authors’ knowledge, this is a pioneering study in the investigation of Islamic religiosity and its influence on the intention to adopt GB. This is a pioneering study in the sense that it proposes a comprehensive religiosity construct using five intertwined dimensions in the literature of GB. This study offers an improved and broader insight assessment of Islamic religiosity, which would help emphasise its significance and utility for business-related decisions by developing an emotionally-driven link between GB practices and the Muslim-oriented consumer market towards increasing the latter’s engagement.