Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia

Mohd Thas Thaker, Hassanudin * and Chandra Sakaran, K. and Nanairan, N. M. and Mohd Thas Thaker, M. A. and Hafezali, I. H. (2020) Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia. International Journal of Islamic and Middle Eastern Finance and Management, 13 (2). pp. 281-302. ISSN 1753-8394

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Purpose: The growth of Islamic banking seems to be tremendous and significant in the context of Malaysia. Moreover, together with Muslim loyalty towards Islamic banking, non-Muslims are also showing positive acceptance towards Islamic banking in Malaysia. Thus, this paper aims to examine the drivers of loyalty among non-Muslim in their adoption of Islamic banking products in Malaysia. Design/methodology/approach: The primary data are collected from the survey administered to non-Muslim clients in Kuala Lumpur and Selangor. The total number of respondents involved are n = 300. The analysis of data is conducted by using a partial least square analysis. Findings: This study documented that loyalty among non-Muslim Islamic banking customers in Malaysia was mainly driven by convenience, product pricing, reliability and responsiveness, operational risk and security and value added services. Only one variable was found to be insignificant, which was accessibility. Practical implications: The results from this research is expected to provide important inputs on the critical factors for consideration by Islamic banks in maintaining further loyalty among their non-Muslim customers, thus enhancing the development of Islamic banking in Malaysia. Originality/value: This paper provides further literature evidence on the factors contributes to loyalty by considering non-Muslims patronization of Islamic banking in Malaysia.

Item Type: Article
Uncontrolled Keywords: Malaysia; partial least square; islamic banking; non-Muslim
Subjects: H Social Sciences > HF Commerce
Divisions: Others > Non Sunway Academics
Sunway University > Sunway University Business School > Dept. Economics & Finance
Depositing User: Dr Janaki Sinnasamy
Related URLs:
Date Deposited: 30 Sep 2020 06:01
Last Modified: 07 Oct 2020 04:02

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