To read this content please select one of the options below:

Customers’ perceptions of FinTech adaptability in the Islamic banking sector: comparative study on Malaysia and Saudi Arabia

Ibrahim Abiodun Oladapo (Department of Economics, College of Business Administration, Imam Abdulrahman Bin Faisal University, Dammam, Saudi Arabia)
Manal Mohammed Hamoudah (Department of Accounting, Faculty of Economics and Administration, King Abdulaziz University, Jeddah, Saudi Arabia)
Md. Mahmudul Alam (School of Economics, Finance and Banking, Universiti Utara Malaysia, Sintok, Malaysia)
Olawale Rafiu Olaopa (Department of Economics, College of Business Administration, Imam Abdulrahman Bin Faisal University, Dammam, Saudi Arabia)
Ruhaini Muda (Accounting Research Institute/Faculty of Business and Management, Universiti Teknologi MARA, Shah Alam, Malaysia)

Journal of Modelling in Management

ISSN: 1746-5664

Article publication date: 22 July 2021

Issue publication date: 29 November 2022

2440

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

Copyright © 2021, Emerald Publishing Limited

Related articles