Why non-Muslims subscribe to Islamic banking?

• Published in: Qualitative research in financial markets Vol. 14; no. 2; pp. 247 - 269
• Main Authors: Saiti, Buerhan, Ardo, Abubakar Aliyu, Yumusak, Ibrahim Guran
• Format: Journal Article
• Language: English
• Published: Bingley Emerald Publishing Limited 13.04.2022; Emerald Group Publishing Limited
• Subjects: Central banks; Financial institutions; Islamic financing; Muslims; Nigeria; Africa; Islamic banking; Nigeria; Theory of planned behaviour; Non-Muslim customers
• ISSN: 1755-4179; 1755-4187
• DOI: 10.1108/QRFM-01-2018-0005

Purpose Islamic finance has exhibited immense potential to transform the global financial landscape in the recent years. In reaction to the trend, Nigeria introduced Islamic banking system to cater to the need of the teeming population and promote financial inclusion, among other potential benefits. Unfortunately, the notable growth recorded by the banks since the inception of the Islamic banking system is slowing down because of religiously induced sentiments and criticisms championed by certain non-Muslim segments of the society. Interestingly, even with the impish hype and publicity, non-Muslims make a significant customer base of the Islamic banks. Therefore, the current paper aims to investigate the factors influencing the choice of Islamic banking among non-Muslim customers, using the theory of planned behaviour as a conceptual framework. Design/methodology/approach This research adopts a positivist approach and relies on facts and quantitative data in an objective manner. Positivism emphasizes on using scientific methods to derive factual and quantifiable results. Findings Based on the regression analysis, subjective norm was found to be the most significant factor influencing the choice of Islamic banking followed by perceived behavioural control and attitude. As a result, it is important for Islamic banking institutions and relevant regulatory agencies to take preemptive measures that may protect and enhance these factors in a bid to promote patronage and eventual success of Islamic banking in Nigeria, especially in the face of growing scepticism. Originality/value The existing literature focuses on the choices of either Muslims without due emphasis on the determinant of choice in the case of non-Muslim customers. The growing support of Islamic banking products, cutting across religious divides, compels research on the factors that influence the choice of Islamic banking among non-Muslim customers. Hence, this research seeks to bridge the gap in the existing literature by embarking on an investigation into the factors influencing the choice of Islamic banking among non-Muslim customers in the context of Nigeria.