What are the factors that influence people to adopt Islamic Banking?
Dear Dr. Firdouse RAHMAN Khan, several factors such as religious belief, social influence and etc. are highlighted in the following articles for your references:
1) Obeid, H., & Kaabachi, S. (2016). Empirical Investigation Into Customer Adoption Of Islamic Banking Services In Tunisia. Journal of Applied Business Research (JABR), 32(4), 1243-1256.
2) Tara, N., Irshad, M., Khan, M. R., Yamin, M., & Rizwan, M. (2014). Factors influencing adoption of Islamic banking: A study from Pakistan. Journal of Public Administration and Governance, 4(3), 352-367.
3) Idris, N. H., Salleh, N. A., Ahmad, N., Ismail, S., & Yazid, Z. A. (2014). Determinants of Intention to Use Islamic Banking Products Among Malay Muslims: A Case Study in Johor Baharu.
I hope these articles could help you.
Perfect. I have seen the first article. The theoretical framework is good there. However certain factors are embedded under other factors. Second is not accessible. Third one is very primitive.
However, thanks for your sincere efforts. All the very best. Jazakallahu khair.
Brother have look to one of my research (already upload in RG) mentioned in this study some Influencing factors attracting the people to investing in Islamic Banking like the product , believing, profit and other thing.
"Traditional Banks Conversion Motivation into Islamic Banks: Evidence from the Middle East"
In one of my research work titled, "Determinants of Rapid growth in Islamic Banking in Pakistan" I found that the most important factor that customers usually consider for the selection of Islamic Banks was convenience/location. I have explained the reasons within the paper that why convenience/locatoin matters as the branches of conventional banks were more than Islamic banks. The second important factor was Religious motive and third was its image. In the Religious motive the most important component/item was Trust on ULAMA/RELIGIOUS SCHOLARS/or FATWA. One thing more, although I have not checked for it, but religious motive may play as an interaction role in the selection of the Islamic Banks.
Dear Firdouse Rahman Khan look at the KAP study by SBP & DFID as well you will find it interesting.
Moreover I have also attached my research paper but the journal in which it was published is now blacklisted therefore i will recommend to not cite it.
http://www.sbp.org.pk/publications/KAPStudy.pdf
Wonderful Dr. Wahab - can you send me your paper mentioned above, please. I will be glad to browse the same. Thx.
I found in one of previously published papers that almost 85%of the respondents are choosing Islamic banks only from theirreligious point of view and more than 60% of the sampled Islamic bank customers are reluctant to leave the bank even if conventional banks offer better interest rates. you may find some insights from my articles:
Article The Effect of Conventional Bank’s Interest Rate & Islamic Ba...
you could find the answer in the report that summarizes global trends in Islamic finance with particular reference on how the market is developing in the UK.
Good referral guys. Thanks Dr. Chowdhury for your paper.
Wonderful reference Dr. Diana - esp. with Global trends. Appreciated - special thanks.
Hi Dr. Farooq. Slipped by oversight. Thanks for your valuable reference. I will go through that and then come back to you. Thanks.
I agree with the answers given by all contributors. You may also use a backdoor approach by considering the factors that make people dislike (misconceptions) Islamic finance. Among such factors as the practice being for only Muslims, meant to target a niche market hence being expensive, an unwillingness to dilute ownership. Maybe these could help conjecture more factors.
Dr. Ellis, first of all thank you for your reply. I like the suggestion of backdoor approach. Good idea. But at the same time, I would like to predicate the fact that Islamic banking is NOT ONLY of Muslims. In many countries, non-muslims are also started practising Islamic finance as the crux of Islamic finance is the TRANSPARENCY persisting in the system. Well, other factors, I do consider and suggest to my research candidate.
Anyways, thanks once again.
Yes that is why I classify that as a misconception. Even banking students have that misconception. I have always had that difficulty with my students and it is when thorough explanations have been done that they wean themselves off that misconception. The issue of transparency is just like the dilution of ownership I mentioned. Most sole proprietors would not want to open up for others to know about what goes on in their business (transparency as you said).