Application of mobile banking services by Malaysian Islamic banks: an evaluation on the customers’ main concerns

The continuous advancement of financial technologies in the realm of Islamic banking and finance is influenced with the spread of banking digitalization. The digitalization of banking undeniably related to the expansion and dependency on the use of internet among the customers. Instead of depending on physical location, Islamic banks nowadays have ample chances to engage and communicate with their customers through this current online banking platforms. In order to ensure their consistent follow-up with the latest digital transformation, Islamic banks must be ready to adopt the new technology, ready to shift their costs of services to the online applications and re-consider their corporate structures. Focusing on the application of mobile banking as a prominent part of banking digitalization among Malaysian Islamic banks, it is important to consider their customers’ concerns relating to its usages. Thus, this research focuses (i) to explain the understanding on what is considered as a mobile banking and its usages among Malaysian Islamic banks; and (ii) to evaluate the concerns among Islamic banks’ customers relating to the use of mobile banking in their daily activities. In doing this research, the researchers apply the qualitative research approaches and content analysis of obtained data from library-based research. As part of findings, it is identified that the customers’ concerns are related to their awareness, knowledge in using the mobile banking, trust towards the safety of their personal information or transactions, and the security of the mobile banking system