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What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh?

Author

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  • Muhammad Nazmul Hoque

    (Accounting Research Institute, Universiti Teknologi MARA (UiTM), Shah Alam 40450, Malaysia)

  • Muhammad Khalilur Rahman

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Pengkalan Chepa 16100, Malaysia)

  • Jamaliah Said

    (Accounting Research Institute, Universiti Teknologi MARA (UiTM), Shah Alam 40450, Malaysia)

  • Farhana Begum

    (Islamic Development Bank (IsDB), Ministry of Education, Dhaka 1205, Bangladesh)

  • Mohammad Mainul Hossain

    (Faculty of Arts and Social Sciences, University of Malaya, Kuala Lumpur 50603, Malaysia)

Abstract

This empirical paper aims at measuring customer attitudes concerning Islamic banking services and how they influence their behavioural intentions to utilise them. Islamic banking has been a fast-growing sector, offering products and services according to Sharia law. Despite being the preferred choice of banking, there is a high percentage of Muslim customers who have shifted from conventional to Islamic banking. Hence, this study aims to examine factors that influence them towards the use of Islamic banking. This is cross-sectional research, where data were collected using questionnaires. A total of 490 questionnaires were received back from adult individuals who were clients of Islamic banks. The data were analyzed using the partial least squares (PLS) method. The findings indicate that ethical organisation, Islamic values, and reputation significantly impact attitudes, whereas financial literacy has no significant impact on them. Attitude is strongly related to the behavioural intention to engage in Islamic banking services. The results also reveal that attitudes mediate the effect of Islamic values, ethical organisation, and reputation on the behavioural intention to engage in Islamic banking services, but Islamic financial literacy is not associated with customers’ behavioural mindset to enjoy such services. This study provides an example of initial empirical evidence from a Muslim majority country like Bangladesh on the relationship between Islamic values, ethical organization, Islamic financial literacy, and reputation and attitudes, which in turn lead to customers’ behavioural intentions to engage in services and products of Islamic banks.

Suggested Citation

  • Muhammad Nazmul Hoque & Muhammad Khalilur Rahman & Jamaliah Said & Farhana Begum & Mohammad Mainul Hossain, 2022. "What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh?," Sustainability, MDPI, vol. 14(8), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:8:p:4703-:d:793878
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    2. Khalida Al-Kenane & Ahmed Almoraish & Dalal Al-Enezi & Awrad Al-Matrouk & Nour AlBuloushi & Faisal AlReshaid, 2025. "The Process Through Which Young Adults Form Attitudes Towards Sustainable Products Through Social Media Exposure in Kuwait," Sustainability, MDPI, vol. 17(10), pages 1-19, May.
    3. Dr. Mohamme Dulal Miath & Mohammed Ali Al Kindi, 2023. "Perception of Small and Medium Enterprises about Islamic Banks in Oman: Evidence from Survey Data," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(10), pages 1572-1585, October.

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