A STUDY ON THE FACTORS INFLUENCING THE PREFERENCE OF ISLAMIC BANKING

Abstract

Participation banks operate according to the interest-free banking principle and raise fund from financial consumers in line with this principle in order to use the funds they collect. The number of financial consumers who prefer Islamic banking in Turkey has been rapidly increasing recently. This study investigates the factors influencing the way financial consumer regard participation banking having developed a model called Islamic Finance Acceptance Model. Service quality, religious sensitivity, awareness, developed four hypotheses regarding transparency and accountability. Surveys were developed in order to collect data online and they were delivered to academics working in Turkish universities. 708 questionnaires were included in the analysis. According to the results of the financial consumer service quality perception it is the most important factor affecting participation in usage intentions. Awareness, Transparency and accountability are the other factors that affect the use of participation banking intentions. Unlike the religious sensibilities are not supposed participation banking have an impact on the intention to use.