Chapter 10: Determinants of Customers’ Engagement with Islamic Banking

Islamic banking institutions have been in operation for nearly 50 years now and despite having been in competition with much more entrenched conventional rivals have demonstrated remarkable potential for growth and sustainability in different countries in both Muslim-dominated and Muslim-minority jurisdictions. The sustained upsurge in Islamic banks’ operations level to even a double-digit mark is not accidental but a replica of the levels of engagement of customers with Islamic banking institutions among other factors. There are various studies on Islamic banking, which covered wide range of issues, including those on Islamic banks customers’ patronage factors.

Accordingly, this chapter presents discussions on factors that influence customers’ engagement/patronage with Islamic banking. From plethora of studies conducted over long period of time and in different countries, many different factors have been identified as the determinants of customers’ engagements. The factors include but are not limited to customers’ personal attributes such as their understanding, knowledge, and perceptions of banking products, the banking institutions’ related factors such as product pricing, technology adopted by bank, environmental factors, and other myriads of determinants.