OBJECTIVE To compare the Islamic and conventional product To identify the benefits and limitations of financial institutions product between Islamic and conventional financial institution To analyze factors that influence customer decision To measure customer acceptance on financial institution product 3
INTRODUCTION Financial institution in Malaysia: Islamic and conventional Islamic financial institution is based on Shariah (Islamic law) Conventional financial institution is fully based on manmade principles 4
BENEFITS Islamic Financial Conventional Financial Institution Product Institution Product Riba prohibit Interest charge to the customer (No interest on loan) Shariah foundation Non-shariah compliant Low risk product Low and higher risk of productRebates are give for earlysettlement at the Banks 6 discretion.
LIMITATIONS Islamic Conventional Shariah restriction Have competition in product and services promotion 7
DISCUSSION & FINDINGS Growing of Islamic financial institution (IFI) IFI strength position IFI product grew from RM23.8B to RM434.6B Customer began to accept Islamic product However, IFI product still not fully accepted Not fully understanding about IFI product 8
CONCLUSION Islamic financial product more prefer by the Malaysian customer since the Muslim population is higher by religious factor. Educating customer about the IFI products IFI & CFI can helped in boosting Malaysian economy 9