Propensity towards Islamic banking among non-users: a mixed-methods analysis

While Islamic banking (IB) experienced a substantial growth in a number of Majority-Muslim countries (i.e., the Gulf Cooperation Council and Malaysia), their market share is still very narrow compared to conventional banks in others (i.e., Morocco). Prior studies have proposed numerous research models to explain the antecedents of IB adoption among users; still, conventional bank customers have not been frequently investigated. This paper aims to explore the determinants of behavioral intentions to use IB among non-users in a county where IB is still at an embryonic stage (i.e., Morocco). Based on an exploratory sequential mixed-methods approach, IB users and non-users’ views were explored through focus groups, while in-depth interviews were administered to get insights from Moroccan Islamic Banks’ managers. The findings of the preliminary qualitative research were subsequently utilized in a quantitative study comprising an online self-administered questionnaire completed by 763 Moroccan conventional banks customers. Our findings suggest that knowledge, advertising, subjective norms and perceived complexity as key determinants of non-users’ attitude towards IB. We also confirmed perceived Sharia-compliance and Islamic religiosity as moderators in the relationship between attitude and behavioral intention to adopt IB, e.g. attitude towards IB is more likely to convert into a purchase intention for individuals with higher levels of Islamic religiosity. This research is among the first to evaluate the antecedents of behavioral intention towards Islamic banking among non-users. It outlines an alternative methodology of looking at consumer behavioral intention by focusing on the non-adopters’ segment. Ultimately, it presents an important contribution to the limited literature on consumers’ perceptions of IB in Morocco, where the operations of Islamic banks are still at an infancy stage.