Islamic banking services adoption as a new banking restructure: examining its adoption from the perspective of doi theory and trust in Malaysia

Abstract

Purpose – This study aims to identify the main influential factors of Islamic banking services adoption in Malaysia. Islamic banking as a new banking method represents its multiple services around the world. Different groups of bank customers use these services in their daily financing and banking activities. However, the usage and adoption rate of these services in Malaysia seems to be under expected level. Design/methodology/approach – Therefore, this study attempts to discover the main influential factors of Islamic banking services adoption in Malaysia as a country with the dual banking system. Findings – The study concluded that perceived attributes of innovation, namely, relative advantage, compatibility, complexity, trialability and finally observability of Islamic banking services with customers’ desire will influence them to use these novel banking services. Originality/value – As discussed in the previous part of this study, the usage rate of Islamic banking services has not achieved the expected rate by customers. Consequently, it is crucial to focus on finding the determinant factors that are able to increase the acceptance as well as usage of these services among bank consumers. This information would afford researchers as well as banking service providers a better understanding of how to facilitate future adoption of this Islamic facility.