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Article
Publication date: 1 May 2024

Mohammad Mominul Islam and Mostofa Mahmud Hasan

While the Noble Quran dictates the prohibition of interest, conventional banks promote Islamic banking by opening Islamic banking windows. Against this backdrop, this study aims…

Abstract

Purpose

While the Noble Quran dictates the prohibition of interest, conventional banks promote Islamic banking by opening Islamic banking windows. Against this backdrop, this study aims to investigate the perceived gaps between managers and clients in Islamic marketing and banking, focusing on conventional banks’ Islamic banking windows.

Design/methodology/approach

Guided by a qualitative approach, semi-structured personal interviews and observations served as the data collection methods, involving 25 banks and 50 respondents in 3 different districts, namely, Shirajganj, Rajshahi and Chapainawabganj of Bangladesh from January to October 2023. The data were analysed using ATLAS.ti 2023 to explore codes and quotations derived from 14 interview questions. Further, ATLAS.ti 2023 facilitated synthesizing content, concepts, code occurrence, network analysis and thematic analysis.

Findings

Islamic and non-Islamic banks use Quranic verses, hadiths (prophetic traditions), images of mosques, the Kaaba and Arabic texts as Islamic marketing tools. These spiritual, divine and prescriptive tools are associated with Islamic banking. However, conventional banks receive criticism for having separate Islamic banking windows to serve religiously conscious clients, which generates tension among clients and bank managers.

Practical implications

The findings can theoretically assist academics in examining conventional banks’ Islamic marketing and banking practices, opening Islamic banking windows. Importantly, Shariah boards can play policy roles in safeguarding the function of Islamic marketing and banking. Managers can use the findings to anticipate client perceptions and enhance Islamic marketing and banking strategies. Likewise, the social implications include the explicit stance of Shariah to mitigate the mixture of halal and haram banking.

Originality/value

This pioneering study explores the perspectives of Islamic banking windows by non-Islamic banks. The combination of Islamic marketing and banking is a noteworthy novelty in this study and deserves recognition for its unique contribution to halal marketing and finance.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 24 November 2023

Husam-Aldin Nizar Al-Malkawi, Shahid Rizwan and Adel Sarea

The purpose of this study is to examine the impact of the marketing mix, customer perceptions, and religion on the buying decision of Islamic banking products in an emerging…

Abstract

Purpose

The purpose of this study is to examine the impact of the marketing mix, customer perceptions, and religion on the buying decision of Islamic banking products in an emerging market namely the United Arab Emirates (UAE).

Design/methodology/approach

This study adopts a quantitative approach to analyze the data of 435 respondents collected through an online survey during January–February 2022. Data analysis of direct and moderating relationships are done through Smart PLS (partial least squares) using structural equation modelling (SEM) technique.

Findings

The results indicate that marketing mix (product, price, place and promotion) and customer perceptions have a positive direct relation with the buying decision of Islamic banking products in the UAE. However, moderation analysis shows that religion is a non-significant moderator for the above relationships.

Originality/value

This study combines potential variables from the perspectives of marketing, human mindset, and individual beliefs. The findings of this study provide a wider understanding of consumer behavior toward Islamic banking products. Marketers of the Islamic banking industry can utilize these findings for effective market segmentation and well-crafted marketing strategies. This will ultimately contribute to the sustainable growth and development of the Islamic banking industry in the UAE and other regions.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 12 September 2023

Qaisar Ali, Shazia Parveen, Tasya Aspiranti, Nunung Nurhayati and Sulistya Rusgianto

The adoption of Islamic banking (AIB) among customers has remained in the limelight due to its significance in the strategic marketing of Islamic banking (IB) services. Although…

Abstract

Purpose

The adoption of Islamic banking (AIB) among customers has remained in the limelight due to its significance in the strategic marketing of Islamic banking (IB) services. Although researchers have devoted a significant effort to investigating the drivers of AIB, little is known about the exclusive barriers hampering AIB. Accordingly, this paper aims to examine the underlying barriers to the adoption of Islamic banking (BAIB) and categorize them into different research clusters using bibliometric analysis.

Design/methodology/approach

The data was collected from 132 articles published in Scopus database between 2007 and 2022 and analyzed using VOSviewer to explore BAIB.

Findings

The findings clustered the barriers to AIB into three groups, namely, efficiency of IB products and services (service quality, Shariah compliance level, availability of services), behavioral (knowledge and awareness, religiosity, trust and intention) and personal attributes (innovativeness, understanding of mobile/internet banking and technology acceptance) factors of Islamic bank customers.

Research limitations/implications

The sample size of this study is relatively small, as the data was imported from Scopus database only to perform Bibliometric analysis. Future studies may use larger sample size by retrieving data from other databases such as Web of Science and PubMed to develop better research clusters of BAIB.

Practical implications

The dynamic business environment and unprecedented changes in consumer behavior require managers creating suitable conditions to foster adoption of their services and capture a better market share.

Originality/value

Following the findings of this research, future research avenues are identified for strategic embeddedness and global development of IB by overcoming BAIB.

Details

International Journal of Ethics and Systems, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2514-9369

Keywords

Article
Publication date: 26 April 2024

Kazi Md Jamshed and Buerhan Uluyol

The main issue is whether customers prefer convenience over Shariah compliance or the opposite when they decide their Islamic banking needs. The purpose of this paper is to…

Abstract

Purpose

The main issue is whether customers prefer convenience over Shariah compliance or the opposite when they decide their Islamic banking needs. The purpose of this paper is to explore why customers adopt Islamic banking products and services: Shariah compliance or convenience?

Design/methodology/approach

Using convenience sampling, 310 respondents’ data were collected through online survey. For testing the fit and hypotheses of the proposed model, AMOS 25 software and Smart-PLS 4.0 software have been used.

Findings

Attitude, Islamic value and convenience have significant determinants of Islamic banking products and services. Shariah compliance has no direct or indirect influence on neither intention nor actual behaviour to adopt Islamic banking services. Furthermore, gender has no such differential effect on the adoption.

Practical implications

Managers and marketers of Islamic banks may benefit from the findings of this study, which demonstrate fresh insights regarding the factors which help in strategy formulations to promote Islamic banking services.

Originality/value

The growth of Islamic banks, branches and windows is remarkable in both Muslim-majority and Muslim-minority countries in the world. This paper postulates the behavioural finance studies in Islamic banking and finance research stream by extending the theory of planned behaviour of Ajzen (1985) as all the three new constructs (Islamic value, convenienc and Shariah compliance) are statistically fit for further studies. However, only Islamic value and convenience are the two significant factors which drive customers to take decision in the proposed model. This study gives insights to the bankers and authority about the consumer behaviour.

Details

Journal of Islamic Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0833

Keywords

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