Perception, Awareness And Understanding Of Muslim Account Holders In Conventional Banks With Respect To Patronising Islamic Banking Products In Nigeria

This study investigated the relationship between perception, awareness and understanding of Muslim account holders in conventional banks and their patronage of Islamic banking products and services. Data were collected using the survey approach involving hand delivery of questionnaire. The simple random sampling procedure was employed to draw a sample size of three hundred and four (304) Muslim account holders (both male and female) from the population. Factor analysis was carried out to validate the constructs and Pearson’s correlation analysis used to assess the relationships among the variables. Multiple regression analysis was also used to identify the predictors among the variables. The results of the correlation revealed that perception, awareness and understanding were positively associated with the decision of Muslim account holders in conventional banks to patronise Islamic banking products and services. The multiple regression results also revealed that understanding and awareness factors jointly explained 27.1 per cent of the variance of Muslim account holders in a conventional bank patronising Islamic banking products and services. To further enhance their understanding and awareness, the Islamic banking industry should focus on the people’s understanding of the position of Shariah on business transactions, the concept of profit and loss sharing practice and the benefits of Islamic banking products and services that would impact on customers’ decision, irrespective of their religion.