Factor influencing the perception of customer toward Islamic banking: A case study in Alor Gajah, Melaka / Amirul Irfan Wisam

The banking system not success due to certain factors like awareness regarding Islamic
banking system when the Islamic banking was start in 1963 in Malaysia. Then new
Islamic bank Dubai Islamic bank was established in 1975. Today approximately 100
banks are operating without interest, but the market of Islamic banking system is low as
compared to conventional banking system. The reasons of this research are to check the
impact of knowledge and awareness, online banking, advertising and service quality on
the perception of customers toward Islamic banking system in Alor Gajah. For this
purpose, survey is used which consist of 88 Muslims respondent in different Islamic bank
in Alor Gajah, Melaka. Result of this study indicates that there is a significant perception
criterion regarding Islamic banking system (IBS). The data is analysed by using SPSS
software version. Mostly respondent know about the Islamic banking product and service
but they are not used these product and service. This study indicates that there is need to
educate the people about IBS and more work are still required to compete with
conventional banking system in Malaysia.