Factors that influence public preference towards islamic deposit account in Klang Valley area / Siti Fatin Atikah Abd Mokti

The basic function of any financial institution is to provide deposit facility to the public. Moreover, it is one of the sources of fund for a financial institution. Deposit is also a liability to the financial institution itself. However, insufficient deposit placement by the public leads to difficulty in investing and supplying financing to debtors. Hence, this has attracted the researcher’s attention to investigate the factors that influence public preference towards Islamic deposit. The objectives of this research are 1) to determine the relationship between religious belief and public preference towards Islamic deposit, 2) to determine the relationship between reputation/bank image and public preference towards Islamic deposit, 3) to identify the relationship between service quality and public preference towards Islamic deposit, and 4) identify the most influential factor of Public Preference towards Islamic deposit. The research was conducted in Klang Valley area where 200 questionnaires had been distributed. The data were analysed using the Statistical Package for Social Science (SPSS). The dependent variable is public preference while the independent variables are religious belief, reputation/ bank image, and service quality. The data were analysed in order to obtain results on Reliability Test, Correlation Test and Multi Regression Analysis. The results showed that all the independent variables have significant relationship with the dependent variable. The most influential factor that influences the public preference on Islamic deposit is religious belief.