Factors Influencing Customers Intention to Use Islamic Personal Financing: Moderated by Religious Obligations

The purpose of this dissertation is to explore the factors that influence consumer intention to adopt Islamic products for their personal financing. For this purpose; subjective norm, pricing of Islamic finance and trust have been taken to assess its influence of intention to adopt Islamic financing. Furthermore, religious affiliation has been taken as moderator variable to determine its moderating effect on the relationship between subjective norm, pricing of Islamic finance and trust and intention to use Islamic financing. To achieve these objectives a self-administered survey questionnaire has been distributed among ۲۰۰ participants. Where, ۱۸۶ questionnaires have been returned fill making a response rate of ۹۳ per cent. To test the hypotheses of the study; regression analysis and process macro moderating analysis have been carried out on the data set. The regression findings for the four hypotheses revealed that subjective norm, trust and religious affiliation, were shown to be positively associated to the intention to employ Islamic personal financing, whereas, pricing Islamic finance have no significant on intention employ Islamic personal financing. Moreover, religious affiliation has a significant moderating effect for pricing of Islamic finance and trust, and insignificant moderating effect for subjective norm. The findings have practical consequences for bank executives as well as theoretical ones for future academics.Keywords:Islamic finance, religion, moderation analysis, subjective norm, trust and Pricing of Islamic financeINTRODUCTIONIslamic banking is considered a more rapid growing and expanding industry around the world. The main element ofits widespread popularity and acceptance is the ethical banking ideologies and practices. In theory and its operation Islamic banking forbids not only riba (interest), but also forbid the participation in other unethical practices such as speculation, gharar (ambiguity), and gambling. Malaysia is considered as the pioneer in Islamic banking with a ۱۷.۴ per cent assets’ share in the banking sector at the end of ۲۰۰۸ (Aziz, ۲۰۱۲). Malaysia is considered as a worldwide Islamic financial center, with the government fully supporting the dual banking system, which permits Islamic and conventional banking to coexist.The majority of modern banking operations are focused on interest. Receiving and lending money on interest is a major part of the activity, which is strictly forbidden in Islam. This ban has provided an incentive for “interest-free” financial products to enter the market, filling a wide demand gap from customers who are wary of paying interest or riba. There are currently over ۳۰۰ Islamic financial institutions (IFIs) in operation around the world, managing a total of US$۸۰۰ billion in assets (Khan and Bhatti, ۲۰۰۸). The Islamic finance sector seems to have become a preferred attractive investment not just for Muslims but also for non-Muslims, particularly during this period of financial crisis, when it is evident

کلیدواژه ها:

Islamic finance ، religion ، moderation analysis ، subjective norm ، trust and Pricing of Islamic finance