54 CAN MOBILE BANKING INFLUENCE DEPOSITOR’S FUND? AN EVIDENCE REVIEW Muhammad Ishyamudeen Omar 1 Noraziah Che Arshad 2 1 Master Student, Othman Yeop Abdullah Graduate School of Business (OYAGSB), Universiti Utara Malaysia, (Email: ishyamudeen@gmail.com) 2 Senior Lecturer, Department of Islamic Finance and Islamic Economics, Islamic Business School Universiti Utara Malaysia, (Email: noraziah.ca@uum.edu.my) Accepted date: 19 January 2019 Published date: 15 April 2019 To cite this document: Omar, M. I., & Arshad, N. C. (2019). Can Mobile Banking Influence Depositor’s Fund? An Evidence Review. International Journal of Accounting, Finance and Business (IJAFB), 4(18), 54-66. __________________________________________________________________________________________ Abstract: Mobile banking is a phenomenon that is having a profound effect on the global financial services industry. The growth of global mobile banking users is in an exceptionally rapid phase. However, the competition for deposit may increase the pressure on the bank cost and thus will affect the profit of the banks. Thus, the main objective of this study is to investigate the impact of using mobile banking to depositor’s fund. Therefore, the dependent and independent variables have been identified and determinants using 16 Islamic banks in Malaysia over the period of 2008 to 2017. It is revealed that mobile banking has a significant impact on the depositor’s fund. The finding of this study is pertinent to the fact that, the growth of mobile banking acceptance among Islamic banks in Malaysia has changed the way banks offer services to their customers. Keywords: Depositor’s Funds, CAMEL Components, Mobile Banking, Islamic Banks. ___________________________________________________________________________ Introduction The emerging of Islamic finance as an effective tool for financing development not only for Muslim countries but also for non-Muslim countries. According to Alawode (2015), main financial markets have discovered that Islamic finance has already became mainstream within the global financial system to help eliminate extreme poverty and also bring prosperity together. Nowadays, global Shariah-compliant financial asset is estimated at around US$2 trillion comprises bank and non-banking institutions, capital market, money market, and Takaful. The Islamic banking is a banking system which is in parallel with the value system and spirit of Islam and the principles of operation is according to Shariah Law (Summit Bank, 2016). This Islamic banking operation is generally transform the conventional money lending system to an asset-backed financing. One of the factors that arises in development of Islamic bank is Volume: 4 Issues: 18 [March, 2019] pp.54-66] International Journal of Accounting, Finance and Business (IJAFB) eISSN: 0128-1844 Journal website: www.ijafb.com