Customer Satisfaction Level of Islamic Bank and Conventional Bank in Pakistan

Abstract

Islamic banking has been started function in 1970s. The speed of the growth of Islamic banking all over the world including Pakistan has been expedited since 2002. The objective of this study is to explained/find the phenomenon that conventional banking, which has been operating for the last three centuries have started tumbling steeply in the last few decades while Islamic banking has been extend their function all over the world specially in Muslim countries with quickly. This study shows the customer satisfaction level of both Islamic and conventional Banking in Pakistan. The population of this study is consists of customer of Islamic banking and conventional banking in Pakistan. Three Islamic banks i.e., Bank of Khyber, Almeezan bank and Albaraka bank and three conventional banks i.e. Habib bank limited, united bank limited and Allied bank limited were selected for this study. And 100 questionnaires were distributed among employees of these banks. Islamic banks are getting popularity due to interest free products, risk sharing activities and strong ties with the religion. Islamic banks work as welfare organization to promote trade and economic activities in line with the instructions of Islam to provide a number of Interest-free products and service. The existence of Islamic and conventional banks in Pakistan created stiff competition among banks to attract and retain greater number of customers by the provision of quality services. This study examined the relationship among service quality, customer satisfaction and bank performance by comparing Islamic and conventional banks operating in Pakistan.