RELIGIOSITY AND BANKING SELECTION CRITERIA AMONG MALAYS IN LEMBAH KLANG

Abstract

This study examines the role of religiosity in shaping consumer’s choice
of banking. Based on an index calculated to measure religiosity, the
findings show that there are significant differences between a Muslim’s
level of religiosity and Islamic banking as his main choice of bank. The
level of religiosity itself is mostly influenced by the Muslim’s formal
religious education as well as maturity. For the banking selection
criteria, among the Muslims, “availability of ATMs” topped the ranking.
Further factor analysis reveals customer and electronic services related
factors. Findings suggest that even if Islamic Banking favours well with
Muslims in Malaysia, the majority of them still patron conventional
banking. And if Islamic bankers want to retain and attract them, the
focus should be in developing and expanding their electronic services in
order to fulfill their preference for faster and more efficient services.