Journal of Islamic Banking and Finance March 2014, Vol. 2, No. 1, pp. 209-229 ISSN: 2374-2666 (Print) 2374-2658 (Online) Copyright © The Author(s). 2014. All Rights Reserved. Published by American Research Institute for Policy Development The Impact of Islamic Branding on Consumer Preference towards Islamic Banking Services: An E mpirical Investigation in Malaysia Md. Abdul Jalil 1 and Muhammad Khalilur Rahman 2 Abstract Islamic banking system as a new banking structure has drastically increased its operations in order to expand its usage in different part of the world. The main objective of the study is to explore how much the bank consumers are influenced by the Islamic banking services and this research is also to identify the factors that influence customers in preferring Islamic banking services. A structural questionnaire is constructed to collect data to answer the research questions as being framed on related affective factors that influence consumers’ preference towards Islamic banking services in Malaysia. In this study, we have employed confirmatory factor analysis (CFA), hypothesis testing and reliability analysis. The results show that convenience of services, perception of services and ethical organization has positive impact on Islamic banking services. The findings also present that Islamic branding has negative impact and insignificant relationship with Islamic banking service, since Malaysian consumers prefer Islamic banking service due to convenience service, perception of service and ethical organization rather than Islamic branding. One potential limitation of this study is the size and composition of the group which participated in the study. Therefore, a generalization about the entire population of Malaysian banking customers of banking sector is inappropriate.This study could not incorporate all levels of diverse factors that might influence consumers’ preference in Islamic banking service.The findings of the study can facilitate the Islamic banking service providers to introduce innovative service offering in according to Islamic shariah principle. Keywords:Islamic branding, Islamic banking services, Consumer preference, Ethical organization, Malaysia 1 Dr. Md. Abdul Jalil, Associate Professor, Faculty of Economics and Management Sciences, Department of Business Administration, International Islamic University Malaysia, Kuala Lumpur, Malaysia. E-mail: abd_jalil2@ yahoo.com 2 Muhammad Khalilur Rahman, Graduate School of Business, Faculty of Business and Accountancy, University of Malaya, Kuala Lumpur, Malaysia. E-mail: mohdkhalilur@ gmail.com