The Customers Decision in Using Islamic Banking Services in Brunei Darussalam: A Comparative Study With Kingdom of Thailand

Abstract

An Islamic banking service has emerged in recent decades as one of the most important trends in the financial world. There has always been a demand for financial products and services that conform to the Sharīʿah. Whereby, Islamic banking is a bank that provides Islamic transactions with Islamic principles to meet the needs of a Muslim and a non-Muslim customers. The market for Islamic banking has grown rapidly over the past few years. Therefore, the development of viable Islamic alternatives to conventional banking, there are now Sharīʿah compliant banking products to meet the short-term and long-term banking need of the customers. This research aims at to identify an attitude and the factors that influence the customer decision in using Islamic banking services in Brunei Darussalam and The Kingdom of Thailand. Further, the population samples are the customer of Bank Islam Brunei Darussalam (BIBD) totally 406 persons and Islamic bank of Thailand (Ibank) totally 417 persons. As well as, the data collected were analyzed using descriptive statistics analysis to find an attitude and the factors that influence the customer decision in using Islamic banking services of both countries. The findings in this study reveal that among similarities, the researcher found both customers of Bank Islam Brunei Darussalam (BIBD) and Islamic Bank of Thailand (Ibank) had great extent recognized on Islamic banking services of both countries. Furthermore, the marketing mix 7’P factors had influenced to majority customers to makes a decision in using Islamic banking services. Hence, the government involvement with the promotion and development of the Islamic Financial and Banking System for giving more options to the public which will stimulate efficiency and competitiveness.