KEY DRIVERS OF ISLAMIC BANKING ACCEPTANCE IN SELANGOR

Abstract

n this globalization era, Islamic banking services are gaining popularity due to its wider coverage to transverse the global economic. It is constructed upon the principle of brotherhood and cooperation. However, having insufficient and low service quality, product benefit and less religion obligation lead to poor Islamic banking product acceptance. The objective of this study is to determine the key drivers that lead to the acceptance of Islamic banking among people in Selangor area. A simple random sampling technique was utilized in obtaining the data. 200 questionnaires were distributed across Selangor. However, only 160 questionnaires can be used due to sampling error. In order to determine the significance relationship between the selected variables, multiple regression analysis was deployed. The results from this univariate technique revealed that service quality and religion obligation has a significant effect on the acceptance of Islamic banking. It is also reported that the R2 is 0.659, which implies 65.9% of acceptance level in Islamic banking is explained by the quality of service (QoS) and the religion obligation. This result may help the Islamic banking practitioner in refining their goals later in order to attract more users in future.