29/09/2025
Here's a plain language summary of our published paper "The psychology of the afterlife and Islamic financing adoption". Special thanks to Bank Pembangunan Malaysia Berhad for funding the project via a research grant. Also, TQVM to UiTM UCS for acknowledging our paper on their FB page:
In general, Muslims are observant of permissible (halal) and forbidden (haram) actions in their daily lives. They believe that their good deeds will earn them paradise in the afterlife, while hellfire is reserved for those who commit the most sins. Intriguingly, these requirements are mostly observed in food and body-based consumption (e.g. cosmetics, pharmaceuticals, apparel) but not so much in financial services-based consumption. Although Islamic finance and assets are growing, many Muslims still rely on conventional bank loans. As Islam forbids usury (riba), this situation warrants an investigation to ascertain if faith in the afterlife and Sharia compliance play substantial roles in consumer religious-based purchase decisions. Through a field survey, we have found that afterlife hope and fear expectations help to shape their psychological assessment in terms of validating the threat, and forming the right response to counter the threat -despite its' existence in an otherworldly realm. These psychological factors, in turn, stimulate their intention to adopt Islamic financing products.
THE PSYCHOLOGY OF THE AFTERLIFE AND ISLAMIC FINANCING ADOPTION
Muhammad Iskandar Hamzah, Abdul Kadir Othman, Amily Fikry, Lennora Putit, and Lailatul Faizah Abu Hassan from Universiti Teknologi MARA have published a unique study in the International Journal of Bank Marketing that unravels the psychological drivers behind Muslim consumers’ adoption of Islamic financing. In general, Muslims are observant of permissible (halal) and forbidden (haram) actions in their daily lives. They believe that their good deeds will earn them paradise in the afterlife, while hellfire is reserved for those who commit the most sins. Intriguingly, these requirements are mostly observed in food and body-based consumption (e.g. cosmetics, pharmaceuticals, apparels) but not so much in financial services-based consumption. Although Islamic finance and assets are growing, many Muslims still rely on conventional bank loans. As Islam forbids usury (riba), this situation warrants an investigation to ascertain if faith in the afterlife and Sharia compliance play substantial roles in consumer religious-based purchase decisions. Through a field survey, the authors have found that afterlife hope and fear expectations help Muslim consumers to shape their psychological assessment in terms of validating the threat (sins and punishment in the afterlife), and forming the right response to counter the threat—despite its' existence in an otherworldly realm. These psychological factors, in turn, stimulate their intention to adopt Islamic financing products. Based on the Protection Motivation Theory (PMT), their research shows that afterlife hope (for paradise) boosts response efficacy, self-efficacy, and religiosity—while fear of divine punishment deters rule-breaking behavior via perceived severity. In terms of practical contributions, the authors suggest that banks should adopt subtle, values-based marketing that resonates with Muslim consumers’ spiritual motivations in strategizing for growing their Islamic finance wallet share.
To gain more insights, read the full study here:
https://www.emerald.com/insight/content/doi/10.1108/ijbm-11-2024-0696/full/html
Muhammad Iskandar Hamzah, Abdul Kadir Othman, Amily Fikry, Lennora Putit, dan Lailatul Faizah Abu Hassan dari Universiti Teknologi MARA telah menerbitkan sebuah kajian unik dalam International Journal of Bank Marketing yang membongkar pemacu psikologi di sebalik kecenderungan pengguna Muslim untuk menerima pembiayaan Islam. Secara amnya, umat Islam sangat peka terhadap perbuatan yang dibenarkan (halal) dan yang dilarang (haram) dalam kehidupan seharian mereka. Mereka percaya bahawa amalan baik akan membuahkan syurga di alam akhirat, manakala neraka disediakan bagi mereka yang bergelumang dengan dosa besar. Menariknya, pematuhan ini lebih ketara dalam aspek pemakanan dan penggunaan berasaskan tubuh (seperti kosmetik, farmaseutikal, dan pakaian), namun kurang dititikberatkan dalam penggunaan perkhidmatan kewangan. Walaupun sektor kewangan dan aset Islam berkembang pesat, ramai umat Islam masih bergantung kepada pinjaman bank konvensional. Memandangkan Islam melarang riba, situasi ini menimbulkan keperluan untuk diselidik: adakah kepercayaan terhadap pembalasan di alam akhirat dan pematuhan Syariah memainkan peranan penting dalam keputusan kewangan patuh Syariah? Melalui kaji selidik lapangan, para penyelidik mendapati bahawa harapan dan ketakutan terhadap kehidupan akhirat membantu pengguna Muslim membentuk penilaian psikologi mereka—sama ada dengan mengesahkan ancaman (dosa dan hukuman akhirat) mahupun membentuk tindak balas yang sesuai bagi menanganinya—walaupun ancaman itu wujud di alam yang tidak kelihatan. Berdasarkan Protection Motivation Theory (PMT), faktor-faktor psikologi ini seterusnya mendorong niat mereka untuk menggunakan produk pembiayaan Islam. Dari segi sumbangan praktikal, para penyelidik mencadangkan agar pihak bank secara halus menggunakan pendekatan pemasaran berteraskan nilai spiritual dan akidah, bagi memperkukuh industri kewangan Islam di kalangan umat Islam.
Baca artikel penuh di sini:
https://www.emerald.com/insight/content/doi/10.1108/ijbm-11-2024-0696/full/html
