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Customers’ Perceptions of FinTech Adaptability in the Islamic Banking Sector: Comparative study on Malaysia and Saudi Arabia

Author

Listed:
  • Oladapo, Ibrahim Abiodun
  • Hamoudah, Manal Mohammed
  • Alam, Md. Mahmudul

    (Universiti Utara Malaysia)

  • Muda, Ruhaini
  • Olaopa, Olawale Rafiu

Abstract

Purpose – This paper aims to compare the 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/approach – Primary data were 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 analysed based on Structural Equation Modelling (SEM) using the partial least squares (PLS) approach. Findings – The 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/value – This 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 Islamic 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 managers, policymakers, and regulators in the Islamic banking industry in both Muslim and non-Muslim countries.

Suggested Citation

  • Oladapo, Ibrahim Abiodun & Hamoudah, Manal Mohammed & Alam, Md. Mahmudul & Muda, Ruhaini & Olaopa, Olawale Rafiu, 2022. "Customers’ Perceptions of FinTech Adaptability in the Islamic Banking Sector: Comparative study on Malaysia and Saudi Arabia," OSF Preprints cwpnm_v1, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:cwpnm_v1
    DOI: 10.31219/osf.io/cwpnm_v1
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    References listed on IDEAS

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    1. Ibrahim Abiodun Oladapo & Asmak Ab Rahman, 2018. "A path analysis approach on the factors of human development among Muslims in Nigeria," Journal of Islamic Accounting and Business Research, Emerald Group Publishing Limited, vol. 9(1), pages 59-76, January.
    2. Peter Gomber & Jascha-Alexander Koch & Michael Siering, 2017. "Digital Finance and FinTech: current research and future research directions," Journal of Business Economics, Springer, vol. 87(5), pages 537-580, July.
    3. Abdulkader Kaakeh & M. Kabir Hassan & Stefan F. van Hemmen Almazor, 2018. "Attitude of Muslim minority in Spain towards Islamic finance," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 11(2), pages 213-230, February.
    4. Farrell, Andrew M., 2010. "Insufficient discriminant validity: A comment on Bove, Pervan, Beatty, and Shiu (2009)," Journal of Business Research, Elsevier, vol. 63(3), pages 324-327, March.
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