Abstract

The intention of this paper is to examine the level of customer’s satisfaction inboth conventional and Islamic banks and to find out that the customers of which type of bank are more satisfied. A modified SERVQUAL model has been used for this purpose. Field survey was carried out through questionnaire based on modified SERVQUAL model. Data were collected from 500 walk-in customers of Islamic and conventional banks andanalysed through SPSS 16. The results show that the customers of Islamic banks are more satisfied and loyal than the customers of conventional banks.This study will help policy makers of Islamic and conventional banks understand the behavioural differences of customers and will also help them to align their service quality according to customer’s perceptions.

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