Measuring Islamic Banking: Integrated Model of User Satisfaction and Technology Acceptance

Abstract

Islamic banking follows Sharia principles, prohibiting interest and certain investments. In Japan, Islamic banking is a small and niche sector with limited regulatory framework. Regulatory changes in 2008 allowed Japanese bank subsidiaries to provide Islamic finance services. Japanese institutions and the government have expressed interest in attracting Islamic investors and promoting Tokyo as a financial center. The study aims to analyze the Islamic banking market in Malaysia, a rapidly growing Asian economy. Malaysia has a significant presence in Islamic banking, making it attractive to foreign investors and institutions, including those from Japan. The study conducts Structure Equation Model analysis to understand the factors influencing consumers' interest in Islamic banking. The findings suggest that while certain factors strongly influence consumer interest in Islamic banking in Malaysia, there are no strong statistical connections in some relationships, which could be explored further in future research.