THE CUSTOMER’S ACCEPTANCE TOWARDS ISLAMIC BANKING PRODUCTS AMONG NON-MUSLIM

Abstract

Islamic banking products (IBPs) are designed to comply with Shariah law, which governs financial and economic activities in a manner consistent with Islamic principles. However, they are not limited to serving only the Muslim community. These products appeal to a broad range of customers, including those of other faiths or even those with no religious affiliation, who appreciate the ethical and risk-sharing aspects of Islamic finance. A total of 66 non-muslim around Taman Indah, Tampin, Negeri Sembilan was selected as respondents have answered the questionnaire given. Correlation analysis is used to analyze the relationship between the customers’ knowledge and bank of choice with factors that influence the non-muslim acceptance towards Islamic banking products. The results of this study show that two factors, namely the customers’ knowledge and bank of choice, influence the non-muslim acceptance towards the Islamic banking products. The findings of this study also show that the customers’ knowledge factor is the most dominant element in influencing the non-muslim acceptance towards the Islamic banking products. This study concludes that in order to influence the non-muslim customers to accept the Islamic banking products, banking institutions in Malaysia needs to increase exposure to all level of customers especially for non-muslim customer, so that they feel more about the existence of such Islamic banking products and understand the benefit of the products itself.