A Review on Factors of Choosing Islamic Banking Products among Malaysian

Abstract

Islamic banking has become a cornerstone of Malaysia’s financial landscape, offering an alternative financial system that aligns with Shariah principles. Despite its significant growth and global recognition, the adoption of Islamic banking products in Malaysia remains inconsistent, with noticeable gaps in consumer awareness, trust, and usage. This study aims to explore the key factors influencing the selection of Islamic banking products among Malaysian consumers, addressing critical issues such as religious beliefs, perceived financial benefits, service quality, social influences, and trust. The research employs a qualitative methodology, utilizing content analysis of journal articles sourced from Web of Science and Scopus database and supported by articles in Malaysian citation-indexed journals. Findings indicate that while religious adherence remains a primary motivator, factors such as financial benefits, transparency, and technological convenience significantly impact consumer decisions. The study also highlights the underexplored role of non-Muslim consumers and the need for inclusive marketing strategies. From a practical perspective, the findings suggest that Islamic banks must enhance transparency, leverage digital technologies, and target diverse demographic groups to foster greater adoption. The originality of this study lies in its comprehensive synthesis of existing research and its emphasis on emerging trends such as fintech and the inclusion of non-Muslim consumers. These insights provide actionable recommendations for policymakers and practitioners, ensuring the sustained growth and competitiveness of Malaysia's Islamic banking sector.