PATRONAGE FACTORS OF MALAYSIAN LOCAL CUSTOMERS TOWARD ISLAMIC CREDIT CARDS

Published by the
Management Research Review

(Emerald Publishing Group)
Volume - 35, Number - 6, 2012

The author

Hanudin Amin 

Labuan School of International Business and Finance

Universiti Malaysia Sabah

IIUM Institute of Islamic Banking and Finance

International Islamic University Malaysia

Abstract

Purpose - Purpose – This study considers an analysis of probability of Islamic credit card usage intention among Islamic banks’ customers. For the purpose, financial cost, knowledge on Islamic credit card, attitude, financial recommendation and demographic items were examined in order to determine whether these factors are influencing the Islamic credit card usage intention or not.Design/methodology/approach - Design/methodology/approach – Drawing upon the theory of reasoned (TRA), this study proposes a conceptual model to examine the factors determining the Islamic credit card usage intention. The research model is evaluated using survey data from 354 respondents with the help of a questionnaire.Findings - Findings – The results reveal that "financial recommendation", "knowledge on Islamic credit card", "age (young)", "marital status", "religion" and "education level" are significantly affecting the Islamic credit card usage intention. The research also concludes that "attitude on Islamic credit card" appears to have no effect on the Islamic credit card usage intention. Research limitations/implications - Research limitations/implications – The research has two limitations. The limitations however provide support for future researches in the area of Islamic credit card. Despite the limitations, the study contributes to the body of academic knowledge by shedding more light into the factors affecting the Islamic credit card usage intention. Practical implications - Practical implications – Insights reported from this study are of particular importance to provide bank managers with an improved understanding pertaining to the Malaysian bank customers’ usage intentions for Islamic credit cards. The research helps them to better planning for Islamic credit card facilities in order to cater better the financial needs of Malaysia bank customers.Originality/value - Originality/value – The contribution of the research lies in achieving a more profound understanding on the Malaysia bank customers’ usage intentions for Islamic credit cards. The research manages to discover the factors, which are particularly determining the use of Islamic credit card. It also expands the literature on Islamic credit card particularly.

A CLUSTER ANALYSIS AMONG MALAYSIANS FOR ISLAMIC DEPOSIT PRODUCTS

Published by the
Journal of Islamic Banking and Finance
Volume - 28, Number - 3, July-Sept 2011
pp.58-74

The authors

Hanudin Amin and Mohd Zulkifli Muhammad

Labuan School of International Business and Finance

Universiti Malaysia Sabah

Abstract

The aim of this study is to obtain a better understanding of student’s selection criteria with respect to Islamic deposit products. The study presents primary data collected by self-administered questionnaires involving a sample of 154 undergraduate students in Labuan, Malaysia. Findings of the study are classified into six clusters. For cluster 1, members of this cluster were likely choose Islamic deposit products on the basis of “friendliness of banks’ staff” but not to “availability of ATM in several locations”. For cluster 2, members of this cluster expressed the greatest tendency on “availability of ATM in several locations” when selecting Islamic deposit products. For cluster 3, members of this cluster seem to have lower preference with respect to selection criteria for Islamic deposit products. For cluster 4, members of this cluster expressed a tendency to choose Islamic deposit products on the basis of “gift reward” and “family influences”. Further, members of cluster 5 were likely choose Islamic deposit products on the basis of “availability of ATM in several locations” but not to “family influences”. Finally, for cluster 6, members of this cluster preferred to choose Islamic deposit products when the rate of return offered for the products is higher. The results are primarily of its potential to bank managers who might want to bring forward specific Islamic deposit products policies for different target groups. The managers could use the outcomes of the current study for better planning of Islamic deposit products.

Keywords – Deposit products, Islamic bank, Choice Criteria, Frequency analysis, Cluster analysis, Malaysia.

IS THE THEORY OF REASONED ACTION VALID FOR AR-RAHNU? AN EMPIRICAL INVESTIGATION

Published by the
Australian Journal of Basic and Applied Sciences (AJBAS)
Volume - 5, Number - 10, October 2011
http://www.insipub.com/ajbas/2011/October-2011/716-726.pdf

The authors

Hanudin Amin and Rosita Chong

Labuan School of International Business and Finance

Universiti Malaysia Sabah

Abstract

This study examines the applicability of theory of reasoned action (TRA) in a context of Islamic pawnshop using structural equation modelling (SEM). The present study presents a simplified theory of TRA, hence it is intended to test whether the two constructs in the theory are acceptable or not in a newly context of Islamic pawnshop. The simplified theory is tested using survey data from 250 respondents. Out of these, only 221 questionnaires are found to be usable whilst the rest are omitted owing to the incomplete responses. The results reveal that attitude was significantly related to the intention to use Islamic pawnshop. Subjective norm was also significantly associated with the intention to use Islamic pawnshop. In sum, the present study provides us valuable insights for service providers to future planning of Islamic pawnshop businesses. 

MODELLING AR-RAHNU USE IN EASTERN MALAYSIA: PERSPECTIVES OF MUSLIMAH

Published by the
Journal of Islamic Economics, Banking and Finance (JIEBF)
Volume - 7, Number - 3, July - September 2011 (pp.63-76)
http://www.ibtra.com/pdf/journal/v7_n3_article4.pdf


The author

Hanudin Amin

Labuan School of International Business and Finance

Universiti Malaysia Sabah

Abstract

Islamic women or Muslimah play pivotal role in promoting the development of ar-Rahnu transactions in Malaysia. As such, this current study is aimed at explaining the factors affecting Muslimah decision to utilise Islamic-based pawnshop in Eastern Malaysia. Employing structural equation modelling, this research examines the interaction between the factors and the Muslimah usage intentions for ar-Rahnu in Eastern Malaysia. To achieve this goal, the study used primary data collected by a survey with the help of a questionnaire administered through personal interviews. The study found out that religious obligation, transaction cost and information on ar-Rahnu were instrumental in determining the use of Islamic-based pawnshop in Eastern Malaysia. This result is of utmost importance for calling a better planning for Islamic-based pawnshop in the future in terms of Shariah adherence, reasonable cost charged and the awareness program. Yet, it is an inventive attempt by the author to highlight the interaction between the three factors and the Muslimah usage intentions for ar-Rahnu.

DETERMINANTS OF CUSTOMERS' INTENTION TO USE ISLAMIC PERSONAL FINANCING: THE CASE OF MALAYSIAN ISLAMIC BANKS

Published by the Journal of Islamic Accounting and Business Research, Volume 2, No 1, pp. 22-42

The Authors

Hanudin Amin, Abdul Rahim Abdul Rahman, Stephen Laison Sondoh Jr, Ang Magdalene Chooi Hwa

Labuan School of International Business and Finance, Universiti Malaysia Sabah, Labuan, Malaysia and Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, Kuala Lumpur, Malaysia

Abstract

Purpose – Islamic banking and finance is an emerging global industry founded on Islamic ethical precepts. Just as in the case of conventional banks, Islamic banks are expected to offer products that consider the needs of their customers. The present study investigates the effects of the following factors: attitude; social influence; religious obligation; government support; and pricing, on the intention to use Islamic personal financing.

Design/methodology/approach – The sample comprised of 150 customers of two fully fledged Islamic banks in Malaysia: Bank Islam Malaysia Berhad and Bank Muamalat Malaysia Berhad. Data were obtained through a face-to-face survey using semi-structured questionnaire. Out of a total of 150 responses, only 136 responses were usable for further analysis. The study used factor analysis, correlation and regression to analyse the data.

Findings – The study found three determinants to be significant in influencing the intention to use Islamic personal financing, namely, attitude, social influence and pricing of Islamic personal financing. Religious obligation and government support were found to be insignificant predictors.

Research limitations/implications – The first limitation of the study is the narrow focus of the survey on the customers of two fully fledged Islamic banks. The second limitation of this work concerns the measurement employed to gauge bank customers' acceptance of Islamic personal financing. Despite these limitations, the findings of this study provide invaluable insights into factors affecting the bank customers' intention to use Islamic personal financing, especially in the case of Malaysian Islamic banks.

Originality/value – This empirical study on the determinants of Islamic financing using the survey method contributes towards a better understanding of the customers' expectations for Islamic financial products. Managers of Islamic banks can now comprehend better the factors that influence bank customers' decision in patronizing Islamic personal financing. Hence, more effective strategies can be recommended to attract bank customers to use Islamic personal financing. Not to mention, the findings of this study should be of value to Islamic banks in terms of expanding their customer base.

Article Type:Research paper

Keyword(s):Islam; Personal finance; Banks; Consumer behaviour; Malaysia.

FACTORS AFFECTING THE DECISIONS OF TABUNG HAJI CUSTOMERS IN MALAYSIA TO USE ATM BANKING: AN EMPIRICAL INVESTIGATION

JOURNAL.:

Hanudin Amin

Labuan School of International Business and Finance

Universiti Malaysia Sabah

Journal of Internet Banking and Commerce, Vol 15(2)

(URL: http://www.arraydev.com/commerce/jibc/articles.htm)

Abstract

The aim of this paper is to provide a preliminary investigation of the factors that determine whether Malaysia’s Tabung Haji customers in Eastern Malaysia will use or not a new facility introduced by the institution, namely Automated Teller Machine or ATM banking. As such, this study introduces the concept Tabung Haji ATM Banking (TAB). In order to explain the factors, this paper extends the applicability of the technology acceptance model (TAM) to TAB and includes “perceived credibility (PC)”, and “perceived religiosity (PR)”, in addition to “perceived usefulness (PU)” and “perceived ease of use (PEOU)”. The results indicate that PU, PEOU, PC and PR are the key determinants to predicting the intentions to use TAB. In addition, PEOU is significantly associated with PU, which, in turn, affecting usage intention among Tabung Haji customers on TAB. This study suffers from two limitations, first is on its location of study and, second is on its limited number of measures suggested in the modified model for the study. Nevertheless, these limitations provide directions for the future study and also provide new information in a new introduced financial innovation at Tabung Haji. The results will be primarily of benefit to Tabung Haji since this study offers insights on the intentions of its customers to use TAB.

Keywords: Personal finance; Tabung Haji; Technology acceptance model; Research study; Malaysia

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SMS BANKING: EXPLAINING THE EFFECTS OF ATTITUDE, SOCIAL NORMS AND PERCEIVED SECURITY AND PRIVACY

JOURNAL.:

Hanudin Amin
Labuan School of International Business and Finance
Universiti Malaysia Sabah

T. Ramayah
School of Management
Universiti Sains Malaysia

The Electronic Journal of Information Systems in Developing Countries, Vol 41 (2010)

(URL: http://www.ejisdc.org/ojs2/index.php/ejisdc)

Abstract

This study aims to investigate the factors influencing the use of short-messaging-service (SMS) banking among Malaysian bank customers. It focuses on the relationships among attitude, subjective norm, perceived security and privacy (PSP) and intention to use SMS banking. We collected 115 valid survey responses. The data indicate that attitude, subjective norm, and PSP are influential predictors of intention to use SMS banking. Corresponding discussion and implications are included.

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