Knowledge of Islamic banking and bank customer satisfaction in Afghanistan: an exploratory analysis

Abstract

Islamic banking and finance is one of the fastest growing sectors of the Afghan economy. Through the lens of the theory of reasoned action (TRA), we focus on customers' knowledge of Islamic banking and attitudes of Islamic bank customers towards Islamic banking products as well as the factors that determine Afghans' selection of Islamic banking versus conventional banking products in Kabul. We examine the products used by bank customers and their motivations for using Islamic products as an alternative to available conventional products. Islamic and conventional products were found to be both highly utilised by customers. Islamic product selection is influenced by religious beliefs and a greater perceived efficiency of Islamic banking services. These results are consistent with the TRA explanation of rational choice as applied to banking products operationalised through the obtainment of knowledge related to Islamic banking.