Customers’ perceptions of FinTech adaptability in the Islamic banking sector: comparative study on Malaysia and Saudi Arabia
Journal of Modelling in Management
ISSN: 1746-5664
Article publication date: 22 July 2021
Issue publication date: 29 November 2022
Abstract
Purpose
This paper aims to compare perceptions of Islamic bank customers concerning FinTech services in Malaysia and Saudi Arabia. It also investigates the level to which customers are willing to adapt FinTech services.
Design/methodology/approach
Primary data was collected from May to September 2019 using a questionnaire to survey 102 Islamic bank customers in Malaysia and 147 in Saudi Arabia. The data are analyzed based on Structural Equation Modelling using the partial least squares approach.
Findings
The findings show that knowledge, attitude and subjective norms are the highly significant determining factors that influence customers’ opinions on adapting to new technology, but awareness demonstrates only a moderately positive effect. Moreover, the impact of these factors on the intention to adopt FinTech services significantly differs between Malaysian and Saudi Arabian customers.
Originality/value
This is an original study based on primary data on customers of Islamic banking in Malaysia and Saudi Arabia. It provides some novel insights into how the banking industry can boost customers’ confidence and enhance their patronage by adopting FinTech in their business operation model. These findings should be of value to senior management, policymakers and regulators in the banking industry in both Muslim and non-Muslim countries.
Keywords
Citation
Oladapo, I.A., Hamoudah, M.M., Alam, M.M., Olaopa, O.R. and Muda, R. (2022), "Customers’ perceptions of FinTech adaptability in the Islamic banking sector: comparative study on Malaysia and Saudi Arabia", Journal of Modelling in Management, Vol. 17 No. 4, pp. 1241-1261. https://doi.org/10.1108/JM2-10-2020-0256
Publisher
:Emerald Publishing Limited
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