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This study attempts to examine the relationship between service quality perception and customers' satisfaction in Malaysian Islamic banking using the SEM approach.

This model starts with SERVQUAL measurement scales consisting of six dimensional structures: tangibles, reliability, responsiveness, assurance, and empathy, and plus the compliance dimensions to measure Malaysian Islamic banking service quality. Respondents are the customers (Muslim and non‐Muslim) who visit the bank counters. They must have an account with one of the full‐fledged Islamic banking and dual‐banking systems.

The results showed that the proportion of Malaysian Muslims' awareness of the Islamic banking products and services were high compared to non‐Muslim customers. The majority of the Islamic banking customers were satisfied with the overall service quality provided by their banks. The findings suggest that the standard model of Islamic banking service quality dimensions should consist of the six dimensions and good determinants of satisfaction. The relationship between service quality and customer satisfaction was significant.

Further research should be considered in order to gather more information regarding service quality and customer satisfaction dimensions in the context of Malaysian Islamic banking industry.

The six dimensions of SERVQUAL represent a valid instrument to measure service quality in Malaysian Islamic banking. Providing financial counseling to attract Muslim customers to use more Islamic banking products and services is critical, where 60 percent of the Malaysian population is Muslim. There is a potential target market for Islamic banking that needs be concerned.

This research is important in line with the obvious cross‐cultural and religious differences between these two key customer segments; Muslims and non‐Muslims. In the Malaysian context, there is a strategic dimension that needs to be understood.

This study aims to test a proposed model based on a combination of the relationship marketing and service quality dimensions as predictors of corporate image and customer loyalty via corporate reputation in the Takaful context. More importantly, this study compares the Takaful operators’ services with the perceived service quality and the relationship marketing from the Malaysian and Saudi Arabian customers’ viewpoint.

A survey-based study was conducted through a questionnaire, and the data was collected from Takaful customers (362 Saudi Arabian and 350 Malaysian customers) through an online survey. Structural equation modelling is used to test the proposed model. Besides, the perception of Takaful customers between Saudi Arabia and Malaysia is compared through a multi-group analysis.

The results from the Malaysian context reveal that positive perceptions of service quality PAKSERV dimensions (personalization, reliability and tangibility) and positive perceptions of relationship marketing dimensions (Islamic ethical behaviour and structural bonds) have a significant influence on the corporate image. Alternatively, in the Saudi Arabian context, results have shown that the positive perceptions of service quality PAKSERV dimensions (assurance and reliability) of service quality and the positive perceptions of the relationship marketing dimensions (Islamic ethical behaviour, structural bonds and financial bonds) have a significant influence on the corporate image. The differences in both countries’ results can also enhance the corporate image on corporate reputation, merely in Malaysia. By contrast, corporate reputation is deemed a significant predictor of customer loyalty, represented as valid for both contexts.

The proposed research model tested in Takaful Malaysian and Saudi Arabian can be replicated in other contexts – in terms of country and industry. Moreover, the current study reveals the crucial role of corporate image in forming corporate reputation. Future research could be focussed on the importance of other emotional or affective variables that may be involved in determining corporate reputation. Finally, future studies can be carried with another cultural perspective to have more diversified socio-economic implications.

It is suggested that Takaful operators from both Malaysia and Saudi Arabia need to put maximum effort towards customer loyalty by bringing both the dimensions of service quality and the relationship marketing in compliance with the principles of Islamic business transaction. The findings of the specific dimensions of service quality and relationship marketing will contribute to customers’ perceptions of corporate image and reputation in the Takaful industry.

The present study tested a blended facet of customer’s overall experience through service quality (PAKSERV) and customer service provider connectivity (relationship marketing) to predict the corporate image of the highly growing financial marketplace (Takaful). Contextually, this study contributes to delineating the factors (corporate reputation) affecting customer loyalty rather than a customer satisfaction tradition. Significantly, Saudi Arabia and Malaysia were chosen for this study, as they are currently the two fast-growing markets for Islamic financial services, especially with regards to the Takaful products and offerings.

There are two purposes to this study: first, to identify the status of ḥiyal (legal devices) in the offering of deposit products based on the tawarruq contract in the Malaysian Islamic banking industry and second, to identify the reasons for the widespread offering of tawarruq-based deposit products by Malaysian Islamic banks (IBs).

The study uses the qualitative method that involved interviews with Malaysian Sharī‘ah experts and Islamic banking operations experts.

The findings show that Malaysian IBs resolved to use the tawarruq munaẓẓam contract in deposit products due to several constraints in the existing banking system and in view of customer preferences.

This study solely focuses on tawarruq-based deposit products due to its extensive application in the Malaysian Islamic banking industry.

The implication of the study is that more stringent procedures are required in the offering of tawarruq-based deposit products as they are extensively utilised and have sparked controversy among Sharī‘ah scholars. Moreover, to retain Malaysia's Islamic banking reputation and trustworthiness, new and less controversial contracts must be developed.

This paper discusses the extensive usage of ḥiyal-based contracts such as tawarruq in Islamic banking institutions' deposit products, with justifications from Malaysian Islamic banking experts. The widespread use of the tawarruq munaẓẓam contract in deposit-based product offerings is based on a reasonable view considering the constraints that Malaysian Islamic banking is currently facing, with strict operation procedures by Bank Negara Malaysia to ensure real operations and to avoid fictitious elements. This paper reveals the use of tawarruq munaẓẓam in deposit products which allows the Islamic banking industry to operate effectively under Malaysia's dominant conventional banking system.

The development and maintenance of a long-term relationship with customers are essential for banks to bolster their profits and thrive in a competitive environment. This study aims to explore the key factors that influence individuals' bank-switching behavior in the Malaysian retail banking industry to provide insights to bank managers to develop effective customer retention strategies.

A convenient sampling technique was used to distribute questionnaires to bank customers in Malaysia. A total of 312 utilizable questionnaires were obtained for further analysis. For the data analysis, the authors used explanatory factor analysis (EFA), confirmatory factor analysis (CFA) and logit and probit models to identify the determinants of bank-switching behavior of bank customers in Malaysia.

This study revealed that switching costs, effective advertising from competitors, inconvenience, price factor and service failures significantly influence customers' retail bank-switching behavior in the Malaysian context. The findings bring some significant policy implications for bank management decisions.

The non-probability, convenience online sampling method may not be generalized to the population. However, the descriptive demographic statistics show that the findings provide a reasonable representation of the Malaysian population.

This study empirically investigates the determinants of individual customers' retail bank-switching behavior in the Malaysian context. This study is the first of its kind to observe the unique feature of price factor as a determinant of individual customers' switching behavior in the Malaysian retail banking industry, contrasting previous similar studies in different countries.

To examine the post dissatisfaction behaviour of Malaysian consumers vis‐à‐vis their complaint behaviour and defection. Specifically, the relationship between public complaint behaviour (i.e. complaining to the organization), private complaint behaviour (complaining to family members and friends without a word to the organisation) and customer defection were considered. The research also investigates the moderating effect of gender and income in this relationship.

Consisted of a survey of 218 randomly selected customers of banks in Malaysia.

shows that both public and private complaints are associated with defection, albeit the determinant strength of private complaint is more robust. These findings are generic as there is no gender‐moderated effect. However, income moderates the private complaint‐defection relationship. Lower income customers are more likely to defect without a word to the bank than higher income Malaysian bank customers.

Emphasises that an apparant each of complaints doesn’t mean that all is well. Also, stresses the need for encouraging complaints from customers and a system to hand complaints. Originality/value Income levels may affect a customers expression of dissatisfaction.

The purpose of this paper is to shed light on the preferences of Malaysian banks' customers for Islamic banking attributes.

The paper uses mixed methodology. The quantitative approach consists of the collection of primary data through a self‐administered questionnaire distributed to 500 Islamic banks' customers in Malaysia. The data gathered were analysed using factor analysis as well as Friedman test. In parallel, qualitative approach was used, in forms of semi structured interviews with ten Islamic banks' customers. The results of both approaches were then reported accordingly.

The quantitative approach reveals that the preference for Islamic banking attributes in Malaysia is a combination of the quality of services offered by the Islamic banks, as well as the convenience associated with it. On the other hand, the qualitative approach revealed that choosing Islamic banks was mainly due to the religious motivation of the customers.

This paper is one of the few that has used a qualitative approach to study consumer preferences for Islamic banking attributes. Furthermore, the paper employs this methodology in the context of Malaysia, which enriches the studies done in this context and area.

The purpose of this paper is to examine the impact of PAKSERV measures on customer satisfaction and loyalty in the Malaysian Islamic banking context.

The dimensionality of the PAKSERV scale is examined with confirmatory factor analysis. A survey approach is adopted to collect data from 300 Islamic banking customers in Kuching, Malaysia.

Results reveal an excellent model fit for the PAKSERV scale in collectivist cultural context of Malaysia. All dimensions of PAKSERV are validated except reliability. The issue of non-validity of the reliability dimension in an Islamic banking context is explained by extant literature.

Islamic banks are recommended to focus on all the PAKSERV scale dimensions to impart service quality. Given a collectivist cultural setting, a “network marketing” approach is recommended to maintain a desirable level of customer satisfaction and loyalty.

The PAKSERV scale has been employed for the first time to investigate the service quality-loyalty path in a collectivist cultural context. The validity of the PAKSERV scale has been operationalized for the first time in a collectivist cultural context.

Mobile phones have provided an opportunity for banking institutions to introduce new services to the public. The latest service, which is now available in Malaysian banking institutions, is the mobile phone credit card. The purpose of this paper is to provide a preliminary investigation of the factors that determine whether Malaysia's bank customers will use the new mobile phone credit card technology.

This paper extends the applicability of the technology acceptance model (TAM) to mobile phone credit cards and includes “perceived credibility (PC)”, the “amount of information about mobile phone credit cards (AIMCs)” and “perceived expressiveness (PE)”, in addition to “perceived usefulness (PU)” and “perceived ease of use (PEOU)”.

The results indicate that PU, PEOU, PC and the amount of information contained on mobile phone credit cards are important determinants to predicting the intentions of Malaysian customers to use mobile phone credit cards. However, PE is not an important determinant in predicting the intentions of Malaysian customers to use mobile phone credit cards.

The study conducted in Eastern Malaysia contains a small size of sample and a limited number of measures in the model developed for the study. Nevertheless, it provides new information about an emerging market and technology.

The results will be primarily of benefit to the commercial banks in Malaysia since this study offers banking institutions an insight on the intentions of their customers to use mobile phone credit cards.

The study extends the understanding of TAM to newly emerging contexts such as the mobile phone credit card.

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.

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.

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.

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.

The purpose of this paper is to examine selection factors among multi-ethnic customers in Malaysian Islamic banking industry. The information is important to reinforce the argument that ethnicity could become significant factor in determining customer behaviour.

This study uses quantitative approach by using questionnaire (Likert scale) to measure respondents ranking of 25 selection factors. A total of 272 valid responses were generated from 450 questionnaires distributed, with 60.4% response rate. The methods of analysis used are descriptive analysis, factor analysis and Kruskal–Wallis test.

The findings revealed five selection factors (religious and ethical, services and convenience, service quality and benefit, external and operational and charges), with religious and ethical factor as the most important criteria for Malay customers. As for Chinese and Indian customers, they chose services and convenience factor.

This study is conducted to gain new insights on the perception of multi-ethnic banking customers in Malaysia towards Islamic banks and how cultural differences might affect their decisions. The findings are important for further development of the Islamic banking industry in Malaysia considering ethnicity has a major impact on the society. The acknowledgement of similarities and differences between the ethnic groups could strengthen the relationship with the Islamic banking customers. Furthermore, incorporation of ethnicity factor in bank’s marketing strategies is important to secure competitive advantage particularly in dual banking system such as in Malaysia.