Title: Diffusion of Islamic Retail
Banking
Services among Malaysian Banking Consumers
Abstract: Islamic Banking refers to the
system
of banking or banking operations that is in consonance with Shari’ah
law
and guided by Islamic economics. Islamic banking prohibits usury
(riba),
the collection and payment of interest as in conventional banking;
instead
it promotes profit-sharing in the conduct of banking business. The main
aim
of this study is to identify factors that influence the adoption of
Islamic
retail banking services among the banking consumers of Malaysia,
specifically
in the urban and sub urban regions of Malaysia. Islamic banking has
evolved
as a new reality in the international financial scene since 1970s.
Since
then numerous studies have been undertaken by researchers to examine
issues
related to Islamic banking across the globe. However past literature,
revealed
a lack of marketing studies on Islamic retail banking services. Roger’s
innovation
diffusion model underpins the conceptual development in the paper. A
set
of survey questionnaires will be developed and distributed to 300
randomly
selected participants. Multiple analytical techniques including factor
analysis
(SPSS), t-test, Friedman test, multiple regression analysis will be
used
to analyze the data and test the model. This study aims to fill the gap
in
the literature by providing concrete evidence on retail Islamic
banking.
Furthermore, comparative study on factors influencing consumer adoption
behavior
on Islamic banking services between Malaysia’s urban and sub urban
regions
is important to generate more compelling insights. The findings would
also
provide knowledge relevant to theoretical building on Islamic banking
research.
Authors: Seethaletchumy Thambiah and
Uchenna
Cyril, Eze
