| Summary: | A multitude of studies have indicated that there is potential growth for Sharia-compliant financial services (i.e. there is an increasing number of retail and corporate customers who want to conduct financial services in accordance to the Sharia). In the recent decade, Islamic finance has received attention from the Singapore government. Nevertheless, the development of Islamic Banking has been slow in Singapore despite interventions from the local authorities.
We decided to conduct a research to help financial institutions better determine their promotional efforts in Islamic banking. Our research focuses on determining the type of information which an individual requires to consider Islamic Banking Aside from that, we looked at the effects which different marketing messages have on prospective customers. Finally, we also examined the differences between Muslims and Non-Muslims in the information required and receptivity to the different marketing messages.
Through the surveys conducted, we found out that individuals require a high level of principles knowledge, i.e. the functioning principles and theoretical foundations of IB, to form an opinion on Islamic Banking. Financial profitability is the only important message that will significantly increase an individual’s purchase intention in Islamic Banking. Additional tests also revealed relationships between principles-knowledge and the effect of marketing messages on purchase intent.
Our findings stress the importance of principles-knowledge to locals who have yet to form opinions on Islamic Banking. We would recommend financial institutions which are interested in promoting Islamic Banking to distribute marketing materials which are educational in nature and to focus on financial profitability of Islamic banking products.
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