Using the Theory of Planned Behavior and Religion to Assess Customers Behavioral Intention to Adopt Islamic Banking Services in Malaysia
DOI:
https://doi.org/10.37231/jimk.2021.22.2.575Abstract
Malaysia is a multi-racial country with a highly variegated ethnic mix. The ethnic groups of Malaysia consist mainly of the Malay community, the Chinese community, and the Indian community. This identity contributes to the different perception and acceptance of the Islamic banking system among its citizens. Due to that, the market share of the banking industry in Malaysia is dominated by conventional banking. The latest statistic registered an increase in the total deposit in 2017 and 2018 by 10.3%, amounting to RM640 billion, representing 33.4% of the banking system's total deposits. Notably, 66.6% of the total deposits contributed by the conventional banking system, actively leading the industry, while Islamic banking has taken the backseat, which may not augur well for the future of Islamic banking. The quest to attract customers is a significant challenge for Islamic banking in Malaysia. This study aims to determine Malaysian customers' behavioral intention to adopt Islamic banking services and determine whether religion affects customers' behavioral intention to adopt Islamic banking services in Malaysia. To achieve this, an exAnanned Behavior (TPB) model was tested in this study. The hypothesized path to achieve this in the structural model influencing an individual's intention to adopt Islamic banking and financial services were positive attitude, positive subjective norms, perceived behavioral control and behavioral religion variable on Islamic banking selection among customers. A set of questionnaires was distributed and answered by 149 working respondents. The data were analyzed using IBM SPSS Statistics Version 20. This study showed that attitude and religion demonstrate a significant positive relationship with behavioral intention to adopt Islamic banking services in Malaysia. This reflects that attitude and religion are the most influential factors in selecting Islam selecting customers in Malaysia. The study also showed that attitude is the most significant factor in influencing customers' behavioral intention
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