Using Decomposed Theory Of Planned Behavior To Predict Customers Intention To Adopt Islamic Home Financing

The perceptions of customers towards Islamic banking and its products is not a new area of research in Islamic finance. However, the previous studies mainly used the theory of reasoned action (TRA) and theory of planned behaviour (TPB). This study deems it necessary to decompose the factors that can influence human behaviour into the relevant variables in Islamic finance. Due to it is comprehensiveness and influence on perception, the study used the decomposed theory of planned behaviour (DTPB) to examine the factors that can influence homebuyers' intention to adopt Islamic home financing. A survey was conducted among 518 potential homebuyers in Nigeria, and the data were subjected to structural equation modelling. The study results revealed that attitude, subjective norms and perceived behavioural control influence the customer's intention to adopt Islamic home financing in Nigeria, while knowledge of Islamic finance and cost-benefit influence their attitude towards the intention. The DTPB can be used to understand customers' intention to adopt Islamic financing products. This study offers bankers insight into important factors to market their products, and help lawmakers understand why they should promote Islamic finance.