Intention to Use Islamic Banking Products and Services: Evidence from Malaysia

Abstract

This study examined the non-economic factors that affect Malaysian’s desire to employ Islamic banking (IB) products and services to preserve financial stability. The study expanded the Theory of Planned Behavior by adding components: awareness and religiosity. The non-probability voluntary sample method was used to gather information from 303 Malaysians who met the requirements of being over 18 years old, not holding any IB products and services, or holding IB products and services but have been inactive in the past one year. A self-administered online questionnaire was disseminated to the respondents across the country using the social media platforms. The data was analyzed using the partial least squares structural equation modelling (PLS-SEM) method. It is discovered that Malaysians’ intentions to use IB products and services are significantly affected by attitudes, perceived behavioral control, subjective norms, awareness, and religiosity. To innovate and offer cutting-edge Shariah-compliant products and services in the individual and business sectors, Islamic banks must use successful techniques. According to the study, religiosity significantly affects people’s behavior, especially when it comes to their intent to utilize IB products and services.