Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia: Evidence from SmartPLS
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 28 January 2020
Issue publication date: 4 May 2020
Abstract
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.
Keywords
Citation
Mohd Thas Thaker, H., Sakaran, K.C., Nanairan, N.M., Mohd Thas Thaker, M.A. and Iqbal Hussain, H. (2020), "Drivers of loyalty among non-Muslims towards Islamic banking in Malaysia: Evidence from SmartPLS", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 13 No. 2, pp. 281-302. https://doi.org/10.1108/IMEFM-07-2018-0211
Publisher
:Emerald Publishing Limited
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