Non-Muslim Customers’ Attitude and Perceptions toward the Products and Services of Islamic Banks: An Exhaustive Study on Islamic Bank Bangladesh Limited.

Abstract

Islamic banking products and services are gaining popularity among non-Muslims across the globe. The aim of this paper is to examine non-Muslim customers' perception of Islamic banking products and services in Bangladesh. The analysis of this research involved 117 respondents, all of whom are customers of Islamic Bank Bangladesh Limited branches located in Sylhet, Bangladesh. Results of the study indicate that the cheaper transaction costs and better services delivery are the main reasons that attract them to use Islamic banking services. Though majority of the respondents are convinced of the social benefits that can get from the interest- free Islamic banking principles, they are not the primary reasons for their utilization of Islamic banking services in Bangladesh. Furthermore, the findings indicate that majority of non-Muslim customers in Bangladesh perceive current Islamic banking services as suitable in satisfying their banking needs. The authors conclude that non-Muslim customers have positive attitude and perceptions towards the products and services of Islamic banks in Bangladesh.