Customers Of Islamic Banks Research Articles

Shariah disclosure expectation gap between Shariah practitioners and Islamic banks’ customers in Malaysia

Research aim: The aim of this study is to examine the possibility of a gap in perception between Shariah practitioners and customers of Islamic banks on the importance of Shariah disclosure by Islamic banks. Design/ Methodology: Questionnaires were distributed to Shariah practitioners, consisting of Shariah committee members and Shariah officers, and Islamic banks’ customers who were lecturers and final year accounting students. The concept of expectation gap derived from the auditing literature was extended and applied to this study’s context. A total of 64 and 200 questionnaires were distributed to Shariah practitioners and customers of Islamic banks, respectively. The response rates were 41% for Shariah practitioners and 65% for Islamic banks’ customers. Research findings: The results indicate that Shariah practitioners and customers perceive all Shariah disclosure items as important to be disclosed. However, a few significant differences were noted between both groups, suggesting the existence of an expectation gap, albeit minimal. Only a minimal gap between the selected customers and practitioners may be reasonable, as the group of customers consisted of informed customers. Theoretical contribution/ Originality: This study contributes to knowledge as there is a dearth of literature that determines customers’ perceptions of Shariah disclosure. Practitioner/ Policy Implications: The results provide regulators and Islamic banks with valuable insight into the importance of Shariah disclosure items from the points of view of customers and Shariah practitioners on which items they concur as important and which items they differ in opinion. Limitation/ Implication: This study is an initial effort to examine the expectation gap between knowledgeable customers and Shariah practitioners on the Shariah disclosure made by Islamic banks. The customers are respondents from only one university; hence, there is a limitation concerning the generalisability of the findings. Thus, future research could extend such an investigation to other customers in order to enhance generalizability.

Determinant of service quality to Islamic banking customer satisfaction during Covid-19

Customer satisfaction is the key, where the company will survive because there is customer loyalty. This study aims to evaluate the effect of service quality (SERVQUAL) in measuring customer satisfaction in Islamic banking. The respondents of this study are Islamic banking customers in Surakarta. The sampling technique using convenience random sampling was obtained as many as 121 respondents. Data analysis used multiple linear regression with additional modifications of dummy variables to see the effect of the covid-19 pandemic on customer satisfaction. The results show that tangible, reliability, and empathy have a significant effect on customer satisfaction. Meanwhile, responsiveness and assurance variables have no significant effect on customer satisfaction. Other results found that the pandemic had no significant effect, meaning that Islamic banking continued to try to provide excellent service, whether in a pandemic or not.

A comparison of conventional versus Islamic banking customers attitudes and judgment

A comparison of conventional versus Islamic banking customers attitudes and judgment

The Effects of Trust and Service Quality on Customer Loyalty of Islamic Banks Moderated By Religiosity (A Study of Islamic Bank Customers in Jakarta)

The objective of this study was to analyze the impact of trust and service quality on customer loyalty of Islamic Banks in which religiosity plays a role as moderator. This study identified how trust and service quality of Islamic banks in terms of their conformity with Sharia principles and their safe handling of deposits affect costumer loyalty towards them. The data for the study were collected through questionnaires from 120 individuals participated in the survey using accidental sampling method. The data were analyzed through structural equation modelling – partial least square (SEM-PLS) with WarpPLS 7.0 version of software. The results showed that trust had a positive impact on loyalty of Islamic banks customers. Moreover, it was confirmed that service quality had a positive relationship with customer loyalty of Islamic banks. However, the results could not identify any significant moderating role of religiosity on the relationship between trust on loyalty and service quality on loyalty.

Pengaruh Etika Bisnis Islam dan Bauran Pemasaran terhadap Loyalitas Nasabah dengan Keputusan Menjadi Nasabah Sebagai Variabel Intervening (Studi pada BPD Jateng Syariah, BRI Syariah dan Bank Muamalat) di Kota Semarang

<em>These study aims to determinew the system from the application of Marketing Mix and Islamic Business Ethicss there is Customer loyalty in Islamic Banking (BRI Syariah, Bank Jateng Syariah and Bank Muamalat) in Semarang City. By using the variables of Marketing Mix and Islamic Business Ethics as Exogenous Variables and Customer Loyalty as Endogenous Variables, besides that, intervening variables are also used to seasure the mediating effect of exogenous to endogenousfactors. Sampling using purposive sampling. The data used is primary data from 3 Islamic Banking customers who are 100 respondents. The results of the study explain that first, the Marketing Mix affects the decision to becomea customer. Second, Islamic Business Ethics influences the decision to became a customer. Third, Marketing Mix has an effect on Customer Loyalty. Fourth, Islamic Business Ethics has no effect on Customer Loyalty. Fifth, the decision to become a customer affects customer loyalty. Sixth, the decision to become a customer is able to mediate between marketing and customer loyalty. Seventh, the decision to become a customer is unable to mediate Islamic Business Ethics on Customer Loyalty.</em>

The Effect of Riba Avoidance and Product Knowledge on the Decision to Become a Customer of Islamic Banks

The objective of this study is to find out the impact of riba avoidance motivation and product knowledge towards decision to be Islamic banks customers. Previous studies found that Muslim societies chose Islamic banks because they are interest-free. However, other studies also found that most Islamic banks customers do not have sufficient knowledge about Islamic bank products. Using the quantitative method, this study surveyed the effect of riba avoidance and product knowledge towards intention becoming Islamic bank costumers. There were thirty respondents who were chosen accidentally. Questions were distributed manually to the Islamic banks' customers. Our study found that riba avoidance and product knowledge significantly affect the decision to become a customer of Islamic banks in Palu City. This is proven by the sig-F value of 0.000, which is smaller than Alpha 0.05. At the same time, partially, the motivation to riba avoidance and product knowledge has a significant effect on the decision to become a customer of Islamic banks. Our findings highlight that Islamic banks should focus on providing more free riba products to attract more Muslim customers. In addition, customers' knowledge of Islamic banks' products should also become the banks' focus for improvement.

Hijrah Intention And Type Of Customer Loyalty of Islamic Banks In Indonesia

<p class="ColorfulList-Accent11">The purpose of this research is to investigate the influence of <em>hijrah</em> intention on customer loyalty in Islamic banks including the type of loyalty based on attitude and behavior. In this research, Islamic banks customers in Indonesia were used as the population, and 360 questionnaires were distributed using the convenience sampling technique. The research hypothesis was tested using Structural Equation Model (SEM) with PLS. All the indicators for the variables of interest were reflective and adapted from some previous literature. The data in this research met the requirements for convergent and discriminant validity and the results showed that <em>hijrah</em> intention had a direct effect on attitude and behavioral loyalty. Furthermore, the <em>hijrah</em> intention provides a stronger influence for attitude loyalty than behavioral loyalty. The results of this research show that the majority of Islamic bank customers were classified as latent loyal.</p>

Fiduciary Principle in Maintaining Islamic Banking Customer's Loyalty amidst the Covid-19 Pandemic

Islamic banks as intermediary institutions shall maintain and comply with sharia principles so that in carrying out their business, they will continue to gain trust from the community, especially during the Covid-19 pandemic. The principle that is highly fundamental for the existence of an industry including sharia banks is fiduciary principle. The purpose of this study was to examine the implementation of the fiduciary principle in maintaining customer loyalty amid the Covid-19 pandemic. The research method used in this study was descriptive analysis. The type of data used was secondary data, namely in the form of articles, magazines, research journals, books, and other sources relevant to this study. The data collection technique used was documentation technique. The results of the study showed that the trust given to customers by sharia banks can increase customer loyalty in conducting various transactions. In addition, various efforts also needed to be made by sharia banks in order to maintain customer loyalty in the midst of the current pandemic by improving service quality and maintaining customer perceptions regarding the image of the bank. Therefore, sharia banks must uphold this fiduciary principle in order to prevent banking risks that may occur amidst the COVID-19 pandemic.

Customers’ perceptions of FinTech adaptability in the Islamic banking sector: comparative study on Malaysia and Saudi Arabia

PurposeThis paper aims to compare perceptions of Islamic bank customers concerning FinTech services in Malaysia and Saudi Arabia. It also investigates the level to which customers are willing to adapt FinTech services.Design/methodology/approachPrimary data was collected from May to September 2019 using a questionnaire to survey 102 Islamic bank customers in Malaysia and 147 in Saudi Arabia. The data are analyzed based on Structural Equation Modelling using the partial least squares approach.FindingsThe findings show that knowledge, attitude and subjective norms are the highly significant determining factors that influence customers’ opinions on adapting to new technology, but awareness demonstrates only a moderately positive effect. Moreover, the impact of these factors on the intention to adopt FinTech services significantly differs between Malaysian and Saudi Arabian customers.Originality/valueThis is an original study based on primary data on customers of Islamic banking in Malaysia and Saudi Arabia. It provides some novel insights into how the banking industry can boost customers’ confidence and enhance their patronage by adopting FinTech in their business operation model. These findings should be of value to senior management, policymakers and regulators in the banking industry in both Muslim and non-Muslim countries.

Millennial loyalty towards artificial intelligence-enabled mobile banking: evidence from Indonesian Islamic banks

PurposeThis study aims to examine factors driving millennial loyalty towards artificial intelligence (AI)-enabled mobile banking services in Islamic banks.Design/methodology/approachThis research collected the data from 204 millennial customers of Islamic banks in Aceh, Indonesia. Partial least square (PLS) was used to evaluate the effect of service factors (the need for service and service quality), technology-based factors (attitudes towards AI, relative advantage, security and trust) and religiosity on millennial loyalty towards AI-enabled mobile banking.FindingsThis inquiry reveals that service quality, attitude towards AI and trust are determinants important for millennial loyalty towards AI-enabled mobile banking. Further, this research notes the significant role of religiosity on millennial loyalty towards mobile banking services.Practical implicationsThis study suggests Islamic banks focus on developing millennial trust and attitude towards AI to increase their loyalty towards AI-enabled mobile banking services. Further, Islamic banks operation that complies with Islamic law is strongly suggested to develop millennial loyalty.Originality/valueTo the best of the authors’ knowledge, this is the first study that tries to scrutinize loyalty towards AI-enabled mobile banking.

Social media marketing and brand personality to brand loyalty with brand trust and brand equity as a mediator

This study aims to determine the effect of social media marketing and brand personality on brand loyalty with brand trust and brand equity as intervening variables for Islamic bank customers. Data were collected by distributing questionnaires to 200 respondents of Islamic bank customers in Indonesia who were selected using the purposive sampling technique. Path analysis and the Sobel test were used to test the hypothesis of the relationship between variables. The results show that social media marketing, brand trust, brand equity partially have a positive and significant effect on brand loyalty. Meanwhile, brand personality is not significant to brand loyalty. The F test shows that social media marketing, brand personality, brand trust, and brand equity simultaneously positively and significantly affect brand loyalty. The Sobel test in path analysis shows that brand trust and brand equity can mediate the relationship between social media marketing and brand personality on brand loyalty.

THE EFFECT OF SERVICE QUALITY, PROFIT SHARING, AND TRUST ON ISLAMIC BANK CUSTOMER SATISFACTION DURING THE COVID-19 PANDEMIC

The purpose of this research is to determine the effect of servive quality, profit sharing, and customer trust in Islamic Bank customer during the Covid-19 pandemic. This research uses a population of Islamic Bank customers in the Surabaya City and the number of samples of the research is 100 respondents with the Non Probability Sampling methode and the technique used is Accidental Sampling. Data collection was carried out by distributing quetionnaires online. The data analysis technique used is multiple regression analysis and based on the result of the analysis it was found that service quality, proft sharing, and trust is a positive and significant impact on customer satisfaction in Islamic Banks customer during the Covid-19 pandemic

PENGARUH TINGKAT RELIGIUSITAS DAN PENGETAHUAN SANTRI TERHADAP KEPUTUSAN MENJADI NASABAH DI BANK SYARIAH

The development of Islamic banks is based on the development of the national economy, which has grown significantly, especially according to the people of Islamic boarding schools who consider that bank interest is included in the category of usury so that most of the people of Islamic boarding schools do not want to make transactions with conventional banks. In the view of the wider community, students have a higher level of religiosity and knowledge of religion than other communities. This research is quantitative, and the analysis technique used in this research is multiple linear regression. The instrument test produces accurate research consisting of validity and reliability tests, statistical tests consisting of t-test to partially test variables, and F test to test between variables simultaneously. At the same time, the classical assumption test is intended to determine whether there is a violation/deviation in the regression model consisting of multicollinearity test, heteroscedasticity test, and normality test. The results of this study indicate that partially the religiosity variable has a significant effect on students' decisions to become customers in Islamic banks with a tcount of 2.034, and the knowledge variable significantly influences students' decisions to become customers in Islamic banks with a tcount of 9.448. Furthermore, the simultaneous influence with the F test shows that religiosity and knowledge have a significant effect on the decision of students to become customers in Islamic banks with a Fcount of 63.534.

Millennial Experience in Islamic Banking: A Comparative Study between Clients and non-Clients

This study examines factors affecting millennial loyalty to Islamic banks, from the perspective of both customers and non-customers. It employed the quantitative method and was assessed with an exploratory-descriptive approach. The study was conducted in Bandung by distributing questionnaires to 200 non-customers and 200 customers of Islamic banks who were between 19-39 years old. Partial Least Square analysis was employed to evaluate the data. The results show that the exploratory-descriptive approach is able to provide complete information about the customer and non-customer loyalty toward Islamic banks. This research underlines that service quality is a significant factor in building customer loyalty while opinion leader is an influencing factor for non-customer loyalty. The study, then, provides guidelines for banking management to improve service quality and to develop marketing strategies using opinion leaders. Besides, it is also advisable for the managers to adjust themselves to the latest trends and millennials lifestyles.

Artificial Intelligence and NLP -Based Chatbot for Islamic Banking and Finance

The role of artificial intelligence (AI) is becoming increasingly important in the field of banking and finance. It has come a long way, and the trend is likely to continue for some time in the future as well. This research study reviews the role of artificial intelligence and use of technology in the finance and banking industry and how AI has changed the way the banks and financial institutions do their business. Customer engagement is one of the most critical parts of the finance and banking industry. This research proposes an artificial intelligence and natural language processing (NLP)-based chatbot model for advising the customers of Islamic banking and finance. Presently, the proposed chatbot is the first chatbot that will help the Islamic finance and banking customers to interact in real time and get Islamic financial advice based on the principles of Sharia related to individual's financial needs.

Reputation and cost benefits for attitude and adoption intention among potential customers using theory of planned behavior: an empirical evidence from Pakistan

PurposeThe purpose of this study is to examine the determinants of attitude and adoption intention of Islamic banking among the potential customers in Pakistan. The conceptual framework is investigating the influence of salient beliefs (consisting of personal factors and external factors) and theory of planned behavior (TPB) construct, i.e. attitude and social influence on Islamic banking adoption intentions.Design/methodology/approachTo realize the objective of the research, 500 questionnaires were distributed among the potential customers of Islamic banking in Pakistan. A purposive sampling technique was used; 375 questionnaires were returned, whereas only 300 were used for analysis. To test the model, structural equation modeling was conducted by using an algorithm and bootstrapping techniques, and the most important factor is identified through the importance performance map analysis model.FindingsThe findings of the research revealed that the attitude has immense importance. It is a strong determinant of Islamic banking adoption intention among potential customers. Second, it is fully mediating the relation of cost benefits, reputation and support for business and the adoption intentions of Islamic banking. However, attitude is partially mediating the relation of religious obligations, social influence and the criterion variable.Research limitations/implicationsThis research is articulating literature by incorporating external and personal factors along with TPB’s constructs, i.e. attitude and social influence and tested the attitude as an intervening variable to explain the relation with adoption intention of Islamic banking. The unfolding results spring up a broad spectrum to policymakers and practitioners of Islamic banking by suggesting the push and pull strategies.Originality/valueNumerous studies conducted to find the influencing factors of adoption intention of Islamic banking, but this research is identifying the determinant of attitude along with adoption intentions. This research is contributing to the existing research by taking reputation (brand image), cost benefits and government support along with religiosity, which is an important factor but is ignored in previous research. Theoretically, this research is contributing to the TPB by giving a scenario of salient beliefs along with attitude and social influence because beliefs play an important role in building the adoption intention of the subject.

Satisfaction of Pakistan’s Islamic banking system during the COVID-19 pandemic Logistic model-based identification of the determinants to improve customer

PurposeThis study aims to explore the potential determinants of customers’ satisfaction with the Islamic banking system and highlights the fact that both internal and external factors play key roles in customer satisfaction (CS) during the COVID-19 pandemic.Design/methodology/approachPrimary data from six Islamic banks (Al Baraka Bank Ltd, BankIslami Pakistan Ltd, Burj Bank Ltd, Dubai Islamic Bank Ltd, Meezan Bank Ltd and MCB-Islamic Bank Ltd) were analysed using a binary logit method.FindingsThe results showed that internal factors such as hand sanitisation facilities, strict compliance with wearing a mask before entering the bank, the distance between customers and dealing officers, an organised network of branches (in terms of health safety protocols), the behaviour of dealing officers and extended banking hours contributed significantly to enhancing the satisfaction of Islamic banking customers during the pandemic in Pakistan. The results showed that high service charges on loans have a significant adverse impact on CS. Concerning external factors, the results showed that mass media platforms that can update customers about new services and customer transactions’ processing timing, the number of operational branches in the pandemic period, available parking space in front of a bank and recommendations from family and friends to open an account with a particular bank increase CS levels.Practical implicationsThe study’s results will be helpful for the policymakers and practitioners to design such policies that can promote the Islamic banking system in developing countries such as Pakistan.Originality/valueUnder the pandemic situation, the present study highlights the internal and external determinants of Islamic banking customers’ satisfaction in Pakistan. The study provides a foundation for Islamic Banks to revise their policy frameworks and marketing strategies to attract customer interest and improve their satisfaction levels.

Moderating the role of religiosity on potential customer intention to deal with Islamic banks in Oman

PurposeThe purpose of this paper is to explore the direct effect of classical predictors of an individual’s behaviour, namely, attitude, subjective norms (SN) and perceived behavioural control (PBC) on the intention to deal with Islamic banks. The study extended the Theory of Planned Behaviour (TPB) by introducing the customers’ religiosity paradigm as a moderator between the classical predictors of the theory and the intention to deal with Islamic banks.Design/methodology/approachBy applying the Theory of Planned Behaviour (TPB) framework, data were collected from conventional banks to investigate the potential Islamic bank customers’ intention. Using self-administered questionnaires, the data were collected from conventional banks in Muscat. A total of 1,000 questionnaires were distributed; however, only 638 were found usable. The structural equation modelling (SEM) was used to test the hypothesis and analyse the prediction values of the model in the TPB framework. It is also used to analyse the moderation effect of religiosity on the relation between the predictors and intention.FindingsThe results of the SEM analysis indicated that attitude, SN and PBC significantly predicted the potential customers’ intention to deal with Islamic banks in Oman. The results of the moderation effect shown that religiosity was a poor moderator of the relation between the attitude and intention as well as the PBC and intention, though, the result shown that religiosity is a partial moderator of the relation between the SN and intention.Research limitations/implicationsDue to the current study method, the result findings should be generalised with caution. Future studies may introduce other variables to examine the moderation effect between the relation of the predictor and intention of the TPB framework. It also signifies the moderation effect of religiosity on the relationship between the attitude, SN and PBC and intention of the potential customs in the TPB framework. This is considered a theoretical enrichment to the behaviour studies and TPB literature.Practical implicationsThe current study assists the Islamic bank practitioners and regulators to broaden the horizon in considering the practical outcomes from the academic research. The result from this study does not only prove that the TPB seems to be acceptable in explaining the intention and behaviour in the field of Islamic banking but also support the robustness of the ability of TPB in predicting the behaviour and intention in a different research context (Islamic banking and finance).Originality/valueThis study is an attempt to introduce religiosity as a moderator in the TPB framework with SEM analysis and to explore the moderation effect between the predictors and intention to deal with Islamic banks among Omani’s Islamic Bank Customers. This study endeavours to fill a gap of these moderation effects and how the customers’ religiosity influence customer’s preferences towards Islamic Bank.

Islamic banks’ brand personality and customer satisfaction: an empirical investigation through SEM

PurposeBrand personality plays an important role in affecting customer satisfaction. The Muslim population is estimated to reach 30% of the world’s population, and it is considered as the fastest-growing religion in the world. To tap into this market, it is important to explore various aspects of business, in general, and marketing, in particular, from the perspective of Muslim consumers. The present research also attempts to do the same by proposing a conceptual model related to the brand personality of Islamic Banks, named, Islamic Banks’ Brand Personality (IBBP) and its impact on customer satisfaction.Design/methodology/approachThis paper analyses the causal relationship that exists between the variables related to Islamic brand personality and customer satisfaction. For this purpose, data was collected quantitatively from 337 customers of different Islamic banks, through a self-administered questionnaire. The data analysis was conducted using SPSS and AMOS software. Factor analysis was performed to extract and decide on the number of factors underlying the measured variables of interest. Structural equation modelling was then used to examine the variables and the fitness of the proposed model.FindingsThe result revealed that five out of the total six hypotheses were supported. In this case, trustworthiness and Shariah compliance resulted in the strongest impact on customer satisfaction followed by sincerity and justice.Practical implicationsThe positive significant impact of trustworthiness and Shariah compliance on customer satisfaction attests to the importance of these variables in the development of a strong brand personality in the context of Islamic banks. Policymakers of the financial industry in general and the Islamic financial service industry, in particular, may benefit from the findings of this study.Originality/valueThere is a dearth of research conducted on investigating the impact of brand personality-related variables on the Islamic banking sector. The present research did not only develop variables of IBBP but also empirically tested their effect on customer satisfaction. This paper, therefore, offers invaluable insight into IBBP with its impact on customer satisfaction.

The relationship between m-banking service quality and loyalty: evidence in Indonesian Islamic Banking

Purpose: This study generally aims to comprehensively examine the effect of mobile banking service quality on creating customer loyalty in Islamic banking. In particular, this research uses the E-S-Qual instrument to verify service quality in mobile banking and uses one mediation variable, namely e-customer satisfaction. Methodology: This study amounted to 273 Islamic banking customers. The total participants are divided into several categories such as; gender, occupation, domicile, and Islamic bank used. The data obtained were analyzed using the Structural Equation Modeling (SEM) approach. This study also uses a second-order perspective (reflective-reflective) SEM on the E-S-Qual variable (efficiency, fulfillment, system availability, and privacy), then the approach used refers to the repeated indicators. Findings: The higher mobile banking service quality has implications for customer loyalty, both attitude and behavior. It happens when the customer is satisfied with the quality of the system displayed. This satisfaction can be achieved if the dimensions of quality that are characteristic of the system can be presented by Islamic banking. Originality: This study underscores the dimensions of efficiency and system availability as keys to mobile banking service quality. Efficiency refers to how the ease, accessibility, and speed provided by the system can facilitate transactions and other functions. Furthermore, system availability refers to how the platforms function properly in relation to technical constraints that may arise, as well as attachment to functions that strengthen processes in the business of Islamic banking customers.