“How do Muslims reconcile religious commitment with conventional banking?”: Unpacking Muslims’ rejection of Islamic banking through consistency theories

Purpose This study investigates the paradoxical behavior of Muslims who report high religiosity and yet continue to engage with conventional banking, despite Islamic law prohibiting it due to its involvement in riba (usury), a practice deemed haram. By examining this behavior, the study aims to understand how consumers with high religiosity reconcile this contradiction between their financial practices and religious beliefs. Design/methodology/approach A qualitative approach was adopted, using semi-structured interviews with 23 Muslims who self-identified as having high religiosity but maintained accounts with conventional banks. Data were analyzed using thematic analysis, guided by consistency theories, such as cognitive dissonance and aintegration theory, to interpret consumer attitudes and rationalizations regarding Islamic banking. Findings The findings challenge traditional assumptions within consistency theories by demonstrating that Muslims can rationalize the contradiction between their beliefs and financial behaviors through external attribution, such as perceived flaws in Islamic banking. This aligns more closely with aintegration theory, which suggests individuals can tolerate cognitive dissonance without experiencing significant psychological discomfort. Research limitations/implications The study’s findings are limited by its sample size and geographic focus on Kuwait. Future research could investigate these dynamics across different cultural contexts and with larger, more diverse samples to enhance generalizability and deepen understanding of this paradox. Practical implications The study provides actionable insights for Islamic banks on how to attract and retain consumers with high religiosity by addressing perceived authenticity and transparency concerns, which are critical in building trust and loyalty within this segment. Social implications By effectively addressing consumer skepticism and enhancing transparency, Islamic banks can better align with the values of Muslim consumers, fostering a more ethical and socially responsible financial system that resonates with their clientele’s religious principles. Originality/value This paper contributes to Islamic marketing literature by focusing on consumers with high religiosity and applying consistency theories to explore how they navigate perceived discrepancies between brand promises and actual practices in Islamic banking. This study provides insights into the psychological mechanisms that enable these consumers to balance their beliefs with their banking choices.