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Customers’ perceptions of FinTech adaptability in the Islamic banking sector: comparative study on Malaysia and Saudi Arabia

Customers’ perceptions of FinTech adaptability in the Islamic banking sector: comparative study... This paper aims to compare perceptions of Islamic bank customers concerning FinTech services in Malaysia and Saudi Arabia. It also investigates the level to which customers are willing to adapt FinTech services.Design/methodology/approachPrimary data was collected from May to September 2019 using a questionnaire to survey 102 Islamic bank customers in Malaysia and 147 in Saudi Arabia. The data are analyzed based on Structural Equation Modelling using the partial least squares approach.FindingsThe findings show that knowledge, attitude and subjective norms are the highly significant determining factors that influence customers’ opinions on adapting to new technology, but awareness demonstrates only a moderately positive effect. Moreover, the impact of these factors on the intention to adopt FinTech services significantly differs between Malaysian and Saudi Arabian customers.Originality/valueThis is an original study based on primary data on customers of Islamic banking in Malaysia and Saudi Arabia. It provides some novel insights into how the banking industry can boost customers’ confidence and enhance their patronage by adopting FinTech in their business operation model. These findings should be of value to senior management, policymakers and regulators in the banking industry in both Muslim and non-Muslim countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Modelling in Management Emerald Publishing

Customers’ perceptions of FinTech adaptability in the Islamic banking sector: comparative study on Malaysia and Saudi Arabia

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References (87)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1746-5664
eISSN
1746-5664
DOI
10.1108/jm2-10-2020-0256
Publisher site
See Article on Publisher Site

Abstract

This paper aims to compare perceptions of Islamic bank customers concerning FinTech services in Malaysia and Saudi Arabia. It also investigates the level to which customers are willing to adapt FinTech services.Design/methodology/approachPrimary data was collected from May to September 2019 using a questionnaire to survey 102 Islamic bank customers in Malaysia and 147 in Saudi Arabia. The data are analyzed based on Structural Equation Modelling using the partial least squares approach.FindingsThe findings show that knowledge, attitude and subjective norms are the highly significant determining factors that influence customers’ opinions on adapting to new technology, but awareness demonstrates only a moderately positive effect. Moreover, the impact of these factors on the intention to adopt FinTech services significantly differs between Malaysian and Saudi Arabian customers.Originality/valueThis is an original study based on primary data on customers of Islamic banking in Malaysia and Saudi Arabia. It provides some novel insights into how the banking industry can boost customers’ confidence and enhance their patronage by adopting FinTech in their business operation model. These findings should be of value to senior management, policymakers and regulators in the banking industry in both Muslim and non-Muslim countries.

Journal

Journal of Modelling in Management – Emerald Publishing

Published: Nov 29, 2022

Keywords: Financial technology (Fintech); Islamic bank; Attitude; Subjective norm; Knowledge; Malaysia; Saudi Arabia; Innovation; Banking

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