Perceptions of Islamic Banking among Post Millennials: A Study on Muslim Students

Abstract

This study aimed to understand the perception of Islamic banking among post millennials Muslim students and explore their expectations towards Islamic Shariah compliant banking. The study uses qualitative method to understand respondents’ subjective views. Semi-structured interviews are used among the Muslim students studying at public and private universities in Malaysia. Twelve students were selected using purposive sampling. The analysis revealed that religious motives, efficient services, and convenience in terms of online banking and ATM services are factors in bank selection. The study found that the students’ perceptions of their understanding of Islamic banking are not sufficient, and there is a gap in the understanding of the mechanism of Islamic banking operations. Most of the existing literature is on the customer satisfaction, customer behaviour and service quality. However, there are little research on the perceptions of Islamic banking among the students who are post millennials. This study focus on the new generation’s perception of Islamic banking and attempts to fill this gap. The findings of the present study can be used as a reference in future studies in the area of perceptions among students or post millennials.