3. 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
4. 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
6. 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 product
Rebates are give for early
settlement at the Bank's
6
discretion.
7. LIMITATIONS
Islamic Conventional
Shariah restriction Have competition in product and
services promotion
7
8. 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
9. 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