Quality Perception of the Customers towards Domestic Islamic Banks in Bangladesh
Journal of Islamic Economics, Banking and Finance, Volume 5, Number 1, 2018
23 Pages Posted: 1 Nov 2018
Date Written: 2018
Bangladesh has the third largest Muslim population in the world after Indonesia and Pakistan. Higher demand of Islamic banking products and services requires existence of superior quality in service, efficiency in system, strict compliance to Islamic Shari`ah and satisfactory community service through job creation and ensuring consistency in service provisions. The study finds that alongside religion being the rigorous factor for choosing Islamic banking, there are other factors which are significant to the customers when selecting a service provider. Upon carrying out the study, a total of 400 (371 successful surveys) samples were surveyed. A factor analyzed multiple regressions, while analysis was conducted to identify imperative factors rationalizing customer satisfaction with Islamic banking services in Bangladesh. The study revealed alongside religion, factors like depositors' desire to achieve highest return, convenient financial transactions system, consistency in service with uniformity, and higher cost-benefit implications were substantial to clients for choosing their intended services. The report recommended, interalia, for strict compliance with Islamic Shari`ah with emphasis on technological development, forming Centralized Shari`ah council and integrated social development rather than private status building. Otherwise it would be a matter of concern for banks to amplify their customer’s satisfaction.
Keywords: Islamic Banking, Perception, Regression, Bangladesh
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