Awareness of Islamic banking products and services among non-muslims : a case study in Bangi / Nurfatin Amirah Khamidun

Malaysia is known as the prior country which implements a dual banking system where Islamic Banking system operates side-by-side with conventional banking system (Hamim, Naziruddin, Syed, 2006). Islamic Banking system still have to compete with conventional banking system as conventional banks have longer history than Islamic banks making customer more prefer to use conventional one instead of Islamic Banking system. Thus, it is crucial for Islamic banks to identify the awareness, understanding, attitudes and banking selection criteria of Malaysians especially non-Muslims. It is reported that the composition of non-Muslims in Malaysia roughly amounted 40% of the population which contributing important roles to Islamic Banking system for non Muslims market. The main objective of this study was to investigate the level of awareness of non-Muslims in Bangi of Islamic Banking products and services which were measured based on three variables; understanding on Islamic Banking operation and system, perception on Islamic Banking products and services and lastly the perception on Islamic Banking products and services. The findings of this research were all of the variables have the significant relationship with the dependent variable. In a nutshell, all the variables used in this study affect the awareness of Islamic Banking products and services among non-Muslims in Bangi.