Perception of Customers Towards Islamic Banking in Pakistan

  • Muhammad Imran Khan
  • Shah Hussain Awan
Keywords: Islamic Banking, Finance, Customers Satisfaction


This study examines the perception of the customers regarding the Islamic banking  in Pakistan by gathering thedata from the sample of 130 customers of the Islamic banks. This study is  directed by a complete profile analysis frequency test, is utilized to find the demographic profile of respondent .Age, the category of income and the education having significant role in that of the customers’ usage of the various Islamic bank and their products/services. The customers appear to be very gratified with them any of the products/services of Islamic banks. Independent variables i.e. Islamic motives, convenience, cost & return and staff factor are taken to test their impact on one dependent variable i.e. satisfaction (used as a proxy for the customer’s perception for the  Islamic banking). Islamic motives, in this study, are measured by four factors i.e. Islamic principle, Fatwa, religion and Islamic image. Convenience is measured through customer service quality, branches operating throughout the country and convenient location. Cost and return is measured by low service charges and high rates of return while staff factor is measured through relevant knowledge and friendly personnel. In this study multiple regression test is used for analysis. The findings show that three of the four selected independent variables i.e. Islamic motive, convenience and cost & return and staff significantly influence the customers’ perception towards Islamic banking.