A Comparative Study between Islamic Banks and Conventional Banks in Bangladesh Based on Satisfaction of Debit Card Users

Abstract

This study is about the measuring of customer satisfaction on debit card use where little attention has been paid to this issue in Bangladesh. Previous studies on Islamic banks and conventional banks were focused on different determinants of customer satisfaction but very few studies on debit card user. The research aim is to identify the level of debit card user satisfaction and its determinants between Islamic banks and conventional banks. For this purpose, a well-planned questionnaire was developed to ensure success and also by providing questionnaires to 300 debit cards holder from Islamic banks and traditional banks using the convenience sampling technique. In this study, bi-variate and regression model were employed to identify the important predictors that affected customer satisfaction regarding debit cards of both types of banks. The study discovered that the customers of conventional banks were more pleased with the overall quality of service than that of Islamic banks were providing. More importantly, traditional banks had security and responsiveness as the driving forces, whereas Islamic banks, as an exception, availability of money and transaction cost were considered less important in customer satisfaction. The most important measures represent the procedures banks may use to tailor their services to individual consumers' needs.