Student banking behaviour in Australia: a mixed methods study of Muslims and Non-Muslims

The objective of this research was to provide new knowledge on the banking behaviour of Muslim and non-Muslim students in Australia. A snapshot of student banking, based on the literature, was developed that investigated four aspects of banking: (i) the main drivers or determinants considered when selecting a bank, (ii) the particular bank products and services utilised, (iii) the level of satisfaction they have with their financial institution, and finally (iv) their attitude towards and knowledge about Islamic banking and finance. The results revealed no significant differences between Muslim and non-Muslim students in selecting a bank and the products and services used. A significant difference was evident and expected in the level of awareness and attitude towards Islamic banking. The test of the theory of planned behaviour provided mixed results. Finally, whether a student was Muslim or non-Muslim was not significant in predicting the overall level of customer satisfaction, the probability of changing banks, or whether students would recommend their bank to others. The study has implications for Australian banks and new entrants to the Australian financial system to appropriately target and better understand the banking behaviour of Muslim and non-Muslim student in Australia. No prior study offers such a widespread snapshot, using a mixed methods approach, to provide such a comprehensive insight into student banking behaviour in Australia.