American Muslims' perceptions of Islamic banking in the Chicago Metropolitan Area

Abstract

Given the challenges facing Islamic banking and finance, Islamic banking is developing at a remarkable pace. In the past three decades, the number of Islamic financial institutions has grown from one in 1975 to over 300 today in more than 75 countries. However, there are relatively few Islamic financial institutions in the United States. The current study investigated the acceptance level of Islamic banking practices among Muslims in the Chicago Metropolitan Area (a region of over 500,000 Muslim residents). A needs assessment component that could be used in marketing Islamic banking products was developed and executed. One hundred two Muslims–both native-born Americans and émigrés from around the world–having conventional banking relationships constituted the responding population in this needs assessment survey.

This quantitative study showed strong interest on the part of Muslim banking customers in having more information about Islamic finance and banking with the likelihood of many of them becoming customers of Islamic banking institutions. From the data obtained in this study, it can be inferred that: (1) most likely customers of Islamic banking in the Chicago Metropolitan Area are males or females age 35-54 with an annual income of $50,000 to $150,000, and having origins in the Middle East; and (2) through a careful and deliberate educational program on Islamic finance and banking, Muslims could be influenced and guided to establish Islamic banking relationships.