Islamic banking: a study of customer satisfaction and preferences in Jordan

Abstract

The Islamic banking system is gaining momentum. Many international conventional banks have started to open branches which operate in accordance with the Islamic Sharia'h principles in some Islamic countries. The Islamic banking system is expected to face strong competition not only from the Islamic banks but also from well-established conventional banks offering Islamic products and services. In this study, an attempt is made to assess the degree of customer awareness and satisfaction towards an Islamic bank in Jordan. A sample 206 respondents took part in this study. The analysis of their responses revealed a certain degree of satisfaction of many of the Islamic bank's facilities and products. The respondents expressed their dissatisfaction with some of the Islamic bank's services. Although the respondents indicated that they are aware of a number of specific Islamic financial products like Murabaha Musharaka and Mudaraba, they show that they do not deal with them.The authors are grateful to two anonymous referees and editor for their helpful comments and suggestions on earlier drafts of the paper.

Consumer trust and confidence in the compliance of Islamic banks

“…The strength of religious ties impacts the choices made, so supporting previous studies (Naser et al, 1999;Metwally, 1996).…”

“…In addition, Tamimi et al (2009) report that the most important factor in choosing a bank was the bank products followed by service quality and then religious 8 factors. Indeed, many factors other than religion have been found to be important when choosing an Islamic bank account including fast and efficient service (Gerrard and Cunningham, 1997;Hegazy, 1995;Erol and El-Bdour, 1989) bank reputation and image (Naser et al 1999;Gerrard and Cunningham 1997;Erol et al, 1990;Erol and El-Bdour, 1989 ) confidentiality (Erol et al, 1990;Erol and El-Bdour, 1989); and profitability (Metawa and Almossawi, 1998).…”

“…Islamic banks provide essentially the same products and services as traditional banks but by different means (Iqbal and Mirakhor, 2007;Warde, 2000;Naser et al 1999;Metwally, 1996). Notably, interest and the crediting or debiting of interest (i.e Riba), does not take place (Ongena & Yuncu, 2011;Khan, 2010;Chong & Liu, 2009;Glaeser & Scheinkman, 1998).…”

Nexus between Bank Credit and Economic Growth in Nigeria: Evidence from VEC Model

“…Khatib et al (1999) [35] investigate the relationship between commercial banking performance and economic growth in Qatar. The study used the variables of bank profit, GDP, foreign interest rates, government revenues, government expenditures, banks equity, regression analysis model and data for the period from 1996 to 1997.…”

Functional Service Quality Satisfaction of Islamic and Conventional Credit Card Users in Malaysia

“…The present study reviews 39 articles published between 1999 and January 2011 using a systematic database keyword search in five major selected databases (i.e., Scopus, Web of Sciences, Proquest, Ebscohost, and EconLite). Most of the studies focus on conventional banking, while studies in the context of Islamic banking customer satisfaction are very limited (Naser et al 1999;Othman & Owen 2001;Muslim & Zaidi 2008;Masood et al 2009;Osman et al 2009;Haque 2010;Khattak & Rehman 2010;Sadek et al 2010). In addition, various methods are developed and introduced to measure customer satisfaction from service quality perspectives, including the Bankserv, Servperf and Servqual models.…”