Perception Of Islamic Banking Research Articles

The Tendency of Customer Toward the Acceptance of Islamic Banking in Bahawalpur Pakistan

The study aims to determine consumers' perceptions of Islamic banking. Research should focus on identifying variables that influence bank selection, such as convenience, service quality, bank reputation, and religion. These factors affect Islamic finance acceptance. This study uses descriptive methodology to examine variables related to the current situation. This study surveyed 300 Islamic banking clients in Bahawalpur area of Punjab, Pakistan. This study indicates that religious conviction has a positive and significant effect on Islamic banking acceptability. This study contributes to the understanding of the factors influencing Islamic banking acceptability. In addition to reputation, there is a positive correlation between acceptance of Islamic banking and other characteristics (e.g., quality of service, ease of use, family, and friend relationships). Based on the findings of this research, Islamic banks will be in a position to identify variables that influence customer selection criteria. Further, research funding and time are limited, making it difficult to conduct broader research. It is particularly interesting that this study focuses on a region of Bahawalpur in the southern Punjab region; while recent studies have looked at entire nations, this study focuses on a region of southern Punjab. We will be able to determine how different variables influence Islamic banking acceptance based on the results of this study. Additionally, we will be able to assess the adaptations Islamic banks will need to make. The purpose of this study is to assist organizations in improving their operations as a means of increasing client loyalty. As a result of this research, the industry will be in a position to develop and implement effective strategies to operate in the southern Punjab region.

Efek Perilaku dan Persepsi Milenial terhadap Minat Menggunakan Mobile Banking Perbankan Syariah di Indonesia

The millennial generation dominates digital banking activity in Indonesia becauseof their dynamic behavior in accessing the internet. This study will analyze theeffects of Millennial behavior and their perception of Islamic banks on theirinterest in using its mobile banking with PLS analysis. The results showed thatonly Millennials' online behavior significantly influenced their perception ofIslamic banking and their interest in using mobile banking of Islamic banks, whileMillennials' financial behavior only influenced their interest in using it.Conversely, Millennial online transportation behavior does not affect eitherperception or interest in using mobile banking of Islamic banks. This study alsoshows that although Millennials' online and financial behavior significantly affectstheir interest in using mobile banking of Islamic banks, most Millennials prefer touse e-wallets such as Go-pay or OVO for their daily online transactions’ activitiesfor several different reasons.

Perceptions of Islamic Banking among Post Millennials: A Study on Muslim Students

This study aimed to understand the perception of Islamic banking among post millennials Muslim students and explore their expectations towards Islamic Shariah compliant banking. The study uses qualitative method to understand respondents’ subjective views. Semi-structured interviews are used among the Muslim students studying at public and private universities in Malaysia. Twelve students were selected using purposive sampling. The analysis revealed that religious motives, efficient services, and convenience in terms of online banking and ATM services are factors in bank selection. The study found that the students’ perceptions of their understanding of Islamic banking are not sufficient, and there is a gap in the understanding of the mechanism of Islamic banking operations. Most of the existing literature is on the customer satisfaction, customer behaviour and service quality. However, there are little research on the perceptions of Islamic banking among the students who are post millennials. This study focus on the new generation’s perception of Islamic banking and attempts to fill this gap. The findings of the present study can be used as a reference in future studies in the area of perceptions among students or post millennials.

The Curious Case of Ribā’s Muted Role in Bank Selection Criteria Among Muslims in Klang Valley, Malaysia

Purpose – Arguably, the most significant difference between conventional and Islamic banking is the prohibition of ribā (interest)—besides gharar (uncertainty) and maysir (speculation). Naturally, it is questioned whether ribā is the make-or-break selection criterion for Islamic banking customers in Malaysia. Consequently, this study examined the moderating effect of ribā knowledge on the nexus between the already widely researched bank selection criteria (i.e., service quality, corporate reputation, cost and benefits, and technology) and bank selection among Malaysian Muslims. Design/Methodology/Approach – This research is quantitative, cross-sectional and non-experimental. It uses structured questionnaires to acquire and understand bank selection criteria and the moderation effect of ribā among Malaysian Muslims. The sample comprised 244 Muslim customers with loan/financing accounts in banks in Klang Valley, Malaysia. This study uses exploratory factor analysis and structural model analysis for data analysis. Findings – The findings reveal three criteria—notably, corporate reputation, cost and benefits, and technology—that exhibit a significant correlation with bank selection. Despite the strong injunctions against ribā, it failed to moderate the relationship between bank selection criteria and bank selection. Additionally, the subsequent importance-performance test indicates that ribā knowledge holds lower significance compared to the three significant criteria. Therefore, the authors believe there is a strong possibility that Malaysian Muslims, specifically in Klang Valley, may not factor the prohibition of ribā into their banking selection decisions. Research Limitations/Implications – The items measured for knowledge of ribā have not been widely tested and are not designed to assess the level of religiosity of the respondents nor the awareness of Islamic law behind the prohibition of ribā. Nevertheless, this paper provides insight into the level of knowledge about ribā among Muslims in Klang Valley, Malaysia and its possible moderating effect on bank selection. Future research could extend this work and examine the knowledge of ribā with respect to the level of respondents’ religiosity and/or the awareness of Islamic law behind the prohibition of ribā. Practical Implications – Religious authorities, non-government organisations and Islamic banks could leverage these insights by uplifting and broadening public education, especially for the Muslim community, on the actual meaning of ribā and its implications in their lives and the hereafter. Originality/Value – The lack of studies focusing on the subject of ribā, its practice in conventional banking, and its prohibition in Islamic banking has often been overshadowed by research studies on adoptions and perceptions of Islamic banking and finance, which may have led to the negligence of its importance in choosing Islamic banking over conventional banking among Muslims in Malaysia.

A Study of Awareness of Islamic Banking in Oman

Research Objective: The Islamic Banking came in existence in the year 2012 in Oman. Oman was the last country of GCC countries to implement Islamic Banking. Although the Shariah compliance concept is not new, it has not developed as significantly as other financial services in Oman. The reason behind this is the lack of understanding of terms and operations of Islamic banks. The reason behind this is a lack of understanding of Islamic banks' terms and operations. This survey has revealed the awareness and understanding of Salalah people regarding the services and activities of Islamic banking. Design/methodology/approach: In this study descriptive statistics, factor analysis and logistic regression approaches to analyze the expectations of customers regarding Islamic banking in Oman. In this research, a sample of 102 people that includes people of different age groups, different profession and occupation were selected. They were mainly the customers of the Islamic bank. The religious commitments of customers, understanding of Islamic banking; products are the variables that have been evaluated. Findings: The findings show that Islamic banking awareness is very low among Omanis, despite the fact that the perceived value of Islamic banking is significant. The study also identifies some of the challenging issues for Banking system in Oman, such as a lack of understanding about Islamic banking, competitive pressures from conventional banking, and non-Muslims' unwillingness to adopt Islamic banking. Among all the participants, the knowledge and use of Islamic banking products by consumers is very weak. Almost all customers accept that interest in Islam is forbidden, but they consider most of the Islamic banks are not to be consistent with Shariah. The findings suggest that the key factors of Islamic banking are religious commitment, perception of Islamic banking. Research limitations/implications – Given the fact that this study uses a relatively small sample, limiting to only one city of the country generalization of the findings needs to be done with caution.
 
 Received: 7 March 2022 / Accepted: 12 May 2022 / Published: 5 July 2022

NON-MUSLIM PERCEPTION OF ISLAMIC BANK: IS RELIGIOSITY MORE IMPORTANT THAN LOCATION, PROMOTION, & PRODUCTS

From a societal perspective, religion is one variable that contributes to economic growth. Islamic banks' brand image remained limited to Muslims, not to other consumers worldwide. Therefore, the point of this study is to examine the impact of religiosity on non-Muslims' perceptions of Islamic banks when compared to internal characteristics such as location, advertising, and product. This research applies a quantitative approach, analyzing numerical data from non-Muslim community demographic descriptions. The causal and contributory relationships between variables are estimated. This research employed a route analysis approach—a questionnaire with a Likert scale was utilized in conjunction with in-depth interviews. The sample was selected from Palangka Raya, Central Kalimantan, a multi-ethnic, multi-cultural, and primarily multi-religious city with 370 non-Muslims. The analysis method used path analysis that helped by SPSS 17.0. The sample was selected using a mix of area sampling and convenience sampling. The findings indicated that religion had little influence and made a negligible contribution to non-Muslims' perceptions of Islamic banking. The marketing mix elements of location, promotion, and product have a more significant effect on how Islamic banks are perceived. Islamic banks are not widely perceived as being exclusively for Muslims. Religious considerations are not the primary element in choosing a bank. Non-Muslims are typical sensible buyers.

PERSEPSI TOKOH MASYARAKAT KOTA TANJUNG PURA TENTANG ISU RIBA DALAM MENINGKATKAN MINAT MASYARAKAT MENABUNG DI BANK SYARIAH INDONESIA KCP STABAT

Sharia Bank is a financial institution tasked with collecting funds and distributing funds as well as providing other services based on the principles of partnership, fairness, transparency and universality as well as conducting banking business activities based on sharia principles. The development of Islamic banks is currently quite fast, but lately Islamic bank customers have different perceptions of Islamic banking, where some people hear about news or issues circulating about the perception of public figures who say that Islamic banks still use the principle of usury. which is a benchmark for some people and raises its own doubts about saving in Islamic banks, this is caused by several factors. First, the lack of socialization carried out by Islamic banks. Second, the lack of understanding of public figures regarding the system and objectives of Islamic banking itself.
 The formulation of the problem in this research is how is the perception of community leaders in increasing people's interest in saving?
 This type of research is a field research (field research), and is descriptive qualitative. The results of this study state that the perception of public figures in increasing public interest in saving in Islamic banks is in the Good category. Good category, customers already understand what Islamic banking is like, customers already know Islamic banks and not a few customers who already understand Islamic banking, and the public confirms that there are issues circulating in the community where public figures still have the assumption that Islamic banks are no different from conventional banks, while the issue of usury on people's interest in saving Islamic banks is in the medium category, meaning that the issue of usury circulating among the public has quite an impact on people's perceptions, therapy does not have much impact on people's interest in saving.

Shar¯ı‘ah Governance Framework and Perception of Islamic Banking in Pakistan

Purpose: Globally commercialized Islamic Banks were launched in 1970s at Middle East, Africa while in year 2002 at Pakistan. As of 2019, there were 5 full-fledge Islamic Banks operating in Pakistan and nearly all conventional banks have Islamic windows. Islamic Banks captured more than 15.5% share of the total Pakistan’s banking market and have far greater potential and capacity to take major share in the market. Methodology: Researchers have examined State Bank of Pakistan’s Shar¯ı‘ah Governance Framework and compared it with the Shar¯ı‘ah governance framework of Malaysia, in light of IFSB guidelines. Based on key findings, focused group interviews of Shar¯ı‘ah scholars were carried out to get their perception about the Shar¯ı‘ah compliance and effectiveness of Shar¯ı‘ah Governance Framework in Pakistan. Findings: The study focused on 5 key components of a good governance system, independence of Shar¯ı‘ah board, competence, confidentiality, consistency and disclosure requirement. The study revealed that Pakistan’s Shar¯ı‘ah governance system is compliant with IFSB guidelines and comparable with Malaysian model. Significance: This study is a unique study in the context of Pakistan. The finding of this research study will provide a comprehensive over view of the Shar¯ı‘ah Governance Framework (SGF) and perception of the Shar¯ı‘ah Scholars on SGF. The study findings may be useful for Islamic banks and other institutions using Islamic mode of financing. Limitations: The study was conducted on a limited sample size mainly from Karachi however the study may be replicated on a bigger sample size and including other cities while the number of conducted interviews can be increased if we go for pan Pakistan as they were only 15 dues to limitation of city as Karachi. Practical Implication: The Shar¯ı‘ah scholars have positive opinion and shown satisfaction on Shar¯ı‘ah governance system and effectiveness of Shar¯ı‘ah controls.The study results can be used to improve public perception about Shar¯ı‘ah compliance of Islamic banking system in Pakistan.

Pengaruh Religiositas terhadap Minat Mahasiswa Menabung di Bank Syariah

As students who have an educational background in Islamic Economics, each has a different perception of Islamic Banking. There are still students who compare Islamic banks and conventional banks, a doubt toward the operational saving system, financing or discounting, and the existence of conventional Banks being more affordable than Islamic banks in remote areas. This study aimed to examine the effect of religiosity on students' interest in saving in Islamic banks. This type of research was quantitative with data analysis using a simple regression method. The results showed that the t count was 14,832, and the t table was 1,975 < t count 14,832 with a significance of 0.000 under 0.05. Therefore, it concluded that religiosity significantly affects the saving interest of students at Islamic Banks.

Middle-income customers and their perception of Islamic banking in Sylhet: one of Bangladesh’s most pious cities

PurposeOwing to religious and economic preferences in Muslim-dominated countries, middle-income customers are at the heart of banks’ strategic targeting. This study aims to investigate selected middle-income Islamic bank customers from Sylhet, one of Bangladesh’s top religious and cultural cities, to examine their perceptions of the Islamic banking services.Design/methodology/approachThis study forwards three determinants of overall satisfaction. These are perceived relative advantage (PRA), perceived risk management (PRM) and perceived customer engagement (PCE). The study has used structured questionnaire and collected complete data on 300 middle-income Islamic bank users. The data was analysed using exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modelling (SEM).FindingsWhile all the three selection factors significantly influence overall satisfaction, PCE has greater positive impact on overall customer satisfaction, followed by PRA and PRM. “Convenient location”, “competitive charges” and “return on deposit despite low earnings” are the top three instruments measuring “PCE”. Religion did not qualify as a standalone selection factor. The results are robust across tests conducted by using EFA, CFA and SEM.Practical implicationsGross purchasing power of middle-income class in Bangladesh grew from 7% to over 30% during the past decade, and the purchasing power of this class stood at US$100bn. Having a greater portion of this population as Muslims, banks can design products and marketing campaigns by using the three selection criteria that offer a combination of faith and non-faith-based variables.Originality/valueSimilar studies on the middle-income customer group have been rare, especially from the Islamic banking perspective. These findings offer a concise list of three factors for the bank managers to build their strategies. With respect to the Vision 2021, these findings carry greater socio-economic significance given the transition of Bangladesh to a middle-income country.

Analysis of Community Perception Towards Sharia Banking in North Sumatra

The banking industry in Indonesia is increasingly crowded with the emergence of banks operating under sharia principles. Although in general almost all banking products offered by Sharia banking and conventional commercial banks are relatively the same, in reality they both have different operational principles, especially in terms of efforts to obtain profits. In addition, the development between Sharia banking is not as expected given the population of Indonesia, which is predominantly Muslim. Sharia banking are far behind conventional banks. The aim of the research was to find out the perceptions of the people of North Sumatra on Islamic banking through surveys in 4 major cities namely Medan, Binjai, Langkat and Deli Serdang which were considered to represent the Muslim population in North Sumatra. This study used a quantitative descriptive survey and study . The survey is used to obtain a comprehensive picture of people's perceptions of Islamic banking in North Sumatra. Quantitative descriptive study, used to explore strategies and considerations used by Islamic banking to the community.The results of the study show that the three independent variables have an influence and it can be seen that the service variable is the main variable that contributes most to its relationship with the results of public perception on the two research objects on Banking.

Pengaruh Pendidikan, Profesi Dan Bagi Hasil Terhadap Persepsi Masyarakat Pada Perbankan Syariah

This research aims to determine whether education, profession and profit-sharing partially and simultaneously affect public perceptions of sharia banking in Siak Kecil District. The data analysis technique used is the validity test, reliability test, normality test, multiple linear regression test, t-test, f test and the coefficient of determination test. The results of this study found that the level of education did not significantly influence people's perceptions of Islamic banking in Siak Kecil District. Then in terms of the profession, there is a significant influence on people's perceptions of Islamic banking in the Siak Kecil District. In terms of revenue sharing, there is a significant influence on people's perceptions of Islamic banking in Siak Kecil District. Simultaneously education, profession and profit-sharing affect people's perceptions of Islamic banking in Siak Kecil District with a large influence of 55.4%.

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

<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>

A study of customers’ perception of Islamic banking in Oman

PurposeThe concept of Islamic banking (IB) as a discipline and the introduction of the full-fledged Islamic banks and Islamic windows are relatively newer developments in the banking sector in Oman. This paper aims to assess customers’ perceptions of the Islamic banks and IB windows in Oman.Design/methodology/approachFollowing the interpretive paradigm and an exploratory research design, data collected through personal interviews with a group of 60 respondents in two of the prominent cities in Oman were analysed qualitatively.FindingsThe study found that customers in Oman had mixed feelings about the Islamic Banks. While some of them were not sure if the banks follow the Islamic principles, a majority of them had not opened an account with the Islamic banks or Islamic windows. The study revealed some vulnerabilities in the areas of their operations, marketing practices, staff knowledge of products and customer-dealings, as well as customers’ understanding of Islamic banks, their principles and practices.Practical implicationsAs the advent of IB is relatively new to Oman, the insights gained by this study will have wider implications for the growth of IB locally. The outcomes of this study would appraise the officials and regulators of Islamic banks and Islamic windows with customers’ perception of IB. The elimination of the identified weaknesses would help them to improve the knowledge, quality and the marketing and promotion of products and services while competing with the conventional banks.Originality/valueThis study is a pioneering effort to know the status of IB and customers’ motivations in Oman towards IB.

A study of German consumers' perception of Islamic banking

This study explores the perception, attitudes and concerns towards Islamic banking in Germany. As the study is of exploratory nature, a qualitative investigation is used. Based on personal interviews with Muslim and non-Muslim consumers in Germany, this study developed a model of Islamic banking perception in a non-Muslim country. This new research area of perception is in its early development and has its own merits. The generated model provides academic scholars, researchers and practitioners with a clear understanding of this paradigm. This paper has also some practical implications resulting from the consumers' perception of Islamic banking and its impact on banks' selection in Germany. The findings reveal that different marketing strategies need to be developed and implemented in the German market.

A study of German consumers' perception of Islamic banking

This study explores the perception, attitudes and concerns towards Islamic banking in Germany. As the study is of exploratory nature, a qualitative investigation is used. Based on personal interviews with Muslim and non-Muslim consumers in Germany, this study developed a model of Islamic banking perception in a non-Muslim country. This new research area of perception is in its early development and has its own merits. The generated model provides academic scholars, researchers and practitioners with a clear understanding of this paradigm. This paper has also some practical implications resulting from the consumers' perception of Islamic banking and its impact on banks' selection in Germany. The findings reveal that different marketing strategies need to be developed and implemented in the German market.

The perception of Islamic banking by the first national bank sales staff in the Kwazulu-Natal region of South Africa

The objective of this study is to determine the perception and awareness of Islamic banking by a conventional banks sales force. This was a cross-sectional study conducted among 100 sales staff randomly selected to take part in the study. A self-administered anonymous questionnaire was used to collect the data using online system called QuestionPro. Results revealed that whilst the respondents did feel there was a need for Islamic banking, they also did feel that Islamic banking was more complicated than conventional banking. The study also revealed that there was an overall negative perception of Islamic banking which was primarily based on a lack of knowledge, awareness, and understanding. It is recommended that banks provide sufficient and effective training to their staff on all products and services so that any negative perception can be eliminated. This study can benefit organizations that are in the Islamic banking industry or looking at getting into the Islamic banking industry. Keywords: Islamic banking, conventional banking, knowledge, perception, training. JEL Classification: G21, D83

Kinerja Manajerial dan Persepsi Nasabah Terhadap Perbankan Syariah di Jawa Barat

The research reveals the performance of Islamic banking in West Java with emphasis on the role of banking intermediation in terms of managerial and customer persefsi terhdap Islamic banks. There are two findings revealed that the performance of Islamic banking of managerial and explore public perception (customers and non-customers) and its response to Islamic banking. Achievement of the performance of Islamic banking in terms of managerial aspects with an average index performance index of 78.05. Not optimal managerial performance because the Islamic banking; not optimal accommodate the wishes and needs of customers and society due to limited facilities, product innovation is still low, and the lack of transparency in the sharing system. Judging from the general public perception is already relatively well. Cognitive aspect shows customers already understand terahadap Islamic banking because it has good access to information so they can create awareness (awareness). The communities also tend to like Islamic banking and to support efforts to socialize the banks and the public has not become a customer intends to become a customer. Only selection Islamic banking is still dominated by the state-owned Islamic banking choice because it is considered bona fide. The study also found differences in the perception of the Bank Umum Syariah versus BPR Syariah. The correlation value is obtained to reach .987. That is a decision the community (customers and non-customers) 98.7% influenced by their perceptions of Islamic banking while the rest (1.3%) is influenced by other variables not included in the model.