Full-Fledged VS Islamic Bank Windows: Which One Do Muslim Consumers Know Better and Prefer More?
Abstract
The study aims to compare the knowledge of and preference for the Islamic banking window and the full-fledged Islamic bank among Muslim customers. Data were collected from 1171 banking clients. Data were analyzed using descriptive analysis. The results show most Muslim customers do not know the difference between the full-fledged Islamic bank and the Islamic banking window. Yet, most Muslim customers favor the full-fledged Islamic bank to the Islamic windows since it is perceived to be more sharia compliant. Thus, the study theoretically contributes to Muslim banking behavior literature by providing empirical evidence on customer knowledge and preference in choosing an Islamic bank. Besides, the study provides knowledge to both the Islamic bank windows and full-fledged Islamic bank on the Muslim customers' understanding of both channels' availability.
Keywords
Full Text:
PDFReferences
Ahmad, N., Haron, S., 2002. Perceptions of Malaysian corporate customers towards Islamic banking products and services. Int. J. Islam. Financ. Serv. 3, 13–29.
Al Baraka, 2017. Principles of Islamic Banking [WWW Document]. URL http://www.albaraka.com/default.asp?action=article&id=46 (accessed 10.15.17).
Al-awsat, A., 2010. Islamic Windows or Islamic Banks [WWW Document]. Middle-East Arab News Opin. URL https://english.aawsat.com/theaawsat/business/islamic-windows-or-islamic-banks (accessed 10.15.17).
Amin, M., Isa, Z., 2008. An examination of the relationship between service quality perception and customer satisfaction: A SEM approach towards Malaysian Islamic banking. Int. J. Islam. Middle East. Finance Manag. 1, 191–209. https://doi.org/10.1108/17538390810901131
Garbois, C., Gourp, C., von Pock, A., Bhatnagar, M., 2012. The Future of Islamic Banking, Security Dialogue. https://doi.org/10.1177/0967010693024004005
Hati, S.R.H., Putri, N.I.S., Daryanti, S., Wibowo, S.S., Safira, A., Setyowardhani, H., 2021. Brand familiarity vs profit-sharing rate: which has a stronger impact on Muslim customers’ intention to invest in an Islamic bank? J. Islam. Mark. ahead-of-print. https://doi.org/10.1108/JIMA-08-2020-0247
International Monetary Fund, 2017. Ensuring Financial Stability in Countries with Islamic Banking.
Kamaruddin, B.H., Safa, M.S., Mohd, R., 2008. Assessing production efficiency of Islamic banks and conventional bank Islamic windows in Malaysia. Int. J. Bus. Manag. Sci. 1, 31–48. https://doi.org/10.5897/JAERD12.088
Karim Consulting, 2016. Embracing the Future of Islamic Banking. Maj. Outlook Perbank. Syariah 2017.
Lone, F.A., Rehman, A.U., 2017. Journal of internet banking and commerce : JIBC. J. Internet Bank. Commer. 22, 1–20.
Lone, F.A., Rehman, A.U., 2017. Customer Satisfaction in Full-Fledged Islamic Banks and Islamic Banking Windows: A Comparative Study. J. Internet Bank. Commer. 22.
Mohammad, M.O., Shahwan, S., 2013. The Objective of Islamic Economic and Islamic Banking in Light of Maqasid Al-Shariah: A Critical Review. Middle-East J. Sci. Res. 13 (Resear, 75–84. https://doi.org/10.5829/idosi.mejsr.2013.13.1885
Mokhtar, H.S.A., Abdullah, N., Alhabshi, S.M., 2008. Efficiency and competition of Islamic banking in Malaysia. Humanomics 24, 28–48. https://doi.org/10.1108/08288660810851450
Mokhtar, H.S.A., Abdullah, N., Al-Habshi, S.M., 2006. Efficiancy of Islamic Banking in Malaysia: A Stochastic Frontier Approach. J. Econ. Coop. 27, 37–70. https://doi.org/10.1108/08288660810851450
Naser, J.K., Jamal, A., Al-Khatib, K., Naser, K., 1999. Islamic banking: a study of customer satisfaction and preferences in Islamic banking. Int. J. Bank Mark. 17, 135–151. https://doi.org/10.1504/IJMEF.2009.029063
Osman, ’Ismah, Ali, H., Zainuddin, A., Rashid, W.E.W., Jusoff, K., 2009. Customers Satisfaction in Malaysian Islamic Banking. Int. J. Econ. Finance 1, p197. https://doi.org/10.5539/ijef.v1n1p197
Rehman, A.A., Masood, O., 2012. Why do customers patronize Islamic banks? A case study of Pakistan. Qual. Res. Financ. Mark. 4, 130–141. https://doi.org/10.1108/17554171211252475
Rustam, S., Bibi, S., Zaman, K., Rustam, A., Haq, Z.U., 2011. Perceptions of Corporate Customers Towards Islamic Banking Products and Services in Pakistan. Romanian Econ. J. 107–123.
Salami, O.L., Adeyemi, A.A., 2015. Malaysian islamic banks’ efficiency: An intra-bank comparative analysis of islamic windows and full-fledged subsidiaries. Int. J. Bus. Soc. 16, 19–38.
Shafii, Z., Khafafa, A.J., 2013. Customer Satisfaction and Islamic Banking Awareness in the Islamic Banking Window System in Libya. Middle-East J. Sci. Res. 13, 12–17. https://doi.org/10.5829/idosi.mejsr.2013.13.1875
Siswantoro, D., 2014. Analysis of Islamic Bank’s Performance and Strategy After Spin-off as Islamic Full-fledged Scheme in Indonesia. Procedia - Soc. Behav. Sci. 164, 41–48. https://doi.org/10.1016/j.sbspro.2014.11.048
Solé, J., 2007. Introducing Islamic Banks into Conventional Banking Systems.
Yaquby, N., 2005. Shariah Requirements for Conventional Banks. J. Islam. Bank. Finance 22.
DOI: http://dx.doi.org/10.21043/iqtishadia.v14i2.9967
Copyright (c) 2021 IQTISHADIA
Iqtishadia Journal Indexed by :
Iqtishadia : Jurnal Kajian Ekonomi dan Bisnis Islam is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.