Factors that influence Islamic deposit products as the main preferences towards non-Muslim banking transaction in Malaysia

Islamic financial products adhere to specific ethical principles, forbidding activities such as alcohol consumption, gambling, and involvement in transactions that accrue interest. In the context of Malaysia, this study focuses on understanding the factors that influence the decision-making process of non-Muslim consumers regarding Islamic deposit products. The independent variables examined in this research encompass several crucial aspects. Firstly, Shariah regulations play a pivotal role in shaping consumer preferences. This includes adherence to Islamic law in financial transactions, ensuring that the products align with religious principles. Withdrawal flexibility is another variable under scrutiny, exploring how the ease and terms of withdrawing funds impact consumers' choices. The study delves into whether flexible withdrawal options enhance the attractiveness of Islamic deposit products among non-Muslim consumers. Moreover, confidence and trust emerge as significant factors influencing the decision-making process. Investigating how consumers perceive the reliability and integrity of Islamic financial institutions sheds light on the broader issue of establishing trust in this sector. Finally, the study considers the level of understanding among customers regarding Islamic financial products. This involves assessing the awareness and comprehension of the principles governing these products, as well as how this understanding affects consumer choices. To gather data for this research, an online questionnaire method is employed, aiming to collect responses from a diverse group of 400 respondents. The target demographic includes residents aged 18 years and above in Malaysia. Through this comprehensive approach, the study seeks to provide valuable insights into the factors guiding non-Muslim consumers in Malaysia when selecting Islamic deposit products.