Awareness of Islamic banking products and services among consumers in South Africa

Abstract

The Islamic banking system has been operational in South Africa since 1989. Islamic banking products and services are available in Islamic banks and Islamic windows operated by conventional banks. However, awareness of Islamic banking products and services has been low. The stability of any economy is dependent on the performance of the financial sector. The financial sector functions as an engine to the economy linking units to deliver goods and services to the people. Islamic banking works on a concept of free interest and it is practised according to the Sharia Law whose source is from the Quran. This study analysed consumer awareness level towards Islamic banking products and services. A sample of 140 respondents from different cities in South Africa was selected. Descriptive statistics and a binary logistic model were used to analyse the responses. The results indicated that gender, age, race, and qualification were statistical significant in influencing awareness of consumers. Further, the findings note that there is a lack of understanding in the principles of Islamic Banking.