The Role of Customer Trust towards the Adoption of Islamic Banking in Nigeria

Authors

  • Precious Chikezie Ezeh Federal University Gusau
  • Riyad Eid
  • Sanusi Lawal
  • Edwin Chukwuemeka Idoko

Keywords:

Trust, Relative Advantage, Compatibility, Adoption of Islamic banking, Nigeria

Abstract

Purpose- There is an argument that most Islamic banks do not fully adhere to Islamic principles, which causes mistrust. Thus, this study aims to establish how trust mediates the relationship between compatibility, relative advantage, and adoption of Islamic banking.

Methodology- Data from 380 Islamic bank customers were used in this study. Structural equation modelling (SEM) analysis was utilized.

Finding- The findings showed that relative advantage and compatibility have impact on the adoption of Islamic banking through trust. Thus, trust mediates the association between compatibility and adoption of Islamic banking, whereas trust partially mediates the relationship between relative advantage and adoption of Islamic banking.

Practical implication- Islamic bank operators should utilize the study's findings to create marketing efforts that will boost the integrity of Islamic banking. To increase client trust, Islamic bank management should prioritize implementing Islamic principles.

Originality- The role of trust in mediating compatibility, relative advantage, and adoption of Islamic banking has not been extensively explored. Thus, this study discovered that trust is important in the adoption of Islamic banking due to the trust deficit recorded among some Islamic bank operators.

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Published

2025-06-27