Determinants that influence individual depositors in choosing Islamic deposit account / Muhammad Aliff Afifi Sedi

Islamic banking sector nowadays has undergone a rapid growth all over the globe and Malaysia is one of the country that became a pioneer in this sector. Since the establishment of first Islamic bank in Malaysia since 1983, more facilities and products are been introduced gradually in the sector including the Islamic window under the Islamic Banking Scheme (IBS). It gives the people in Malaysia more choices on the determining the right Islamic bank to deposit their cash. According to the statistic of deposit by holder gathered from Bank Negara Malaysia website, it is shown the total deposit by individual is the highest compared to the other deposit holder for 3 consecutive years, 2015, 2016 and 2017. The amount included the deposit from the Islamic bank and Islamic banking scheme banks. Thus, this issue triggered our interest to know deeper regarding the factors that influence individual depositor in choosing the Islamic deposit account. The purposed of this study is to identify the factor of selection of Islamic deposit account. Independent variables that involves is perception toward Islamic banking, attitude, perceive religiosity and trust. Data collected from 133 respondents of bank customer and were pick randomly. The findings showed that individual depositors do not really care about religious factor and perception toward Islamic banking in choosing the Islamic deposit account. The attitude and trust factors are became the main reason for the depositor in this case. For that reason, Islamic bank should not hesitate about introducing the new Islamic banking product especially the deposit account.