Customers preference towards islamic banking: religious belief or influence of economic factor

Abstract

The purpose of this paper is to study the customer awareness and attitude towards choosing the Islamic Banking. In developing countries Islamic banking has gained an immense popularity and importance which has also led a growth in Islamic financial sector. This paper has mainly tried to identify the actual factors which influences the customers to choose Islamic banking rather than convention banking system. Whether the customers prefer Islamic banking because of religious beliefs or economic factors. A descriptive study has been carried out after analyzing few factors like Demographic Characteristics and Consumer Attitudes, Service attributes Religious belief. This paper also indicates the opportunities and chances of Islamic banking to develop as a main stream banking system in the financial market. As our overall findings show that in developing countries there are greater opportunities for development and growth of Islamic financial system as the Muslim community is willing to take financial products and spend their lives according to Shariah. However Islamic Banking institutes still need to work hard for their endurance with conventional banking system. Also a qualitative research has been conducted to observe and analyze the overall knowledge or awareness level of customers regarding Islamic banking system in Bangladesh. So ten in-depth interviews have been undertaken on issues related Islamic banking system. Then directed a thematic analysis depending on finding from the in-depth interviews and at end have come up with some recommendation and suggestions concerning Islamic banking. The overall research findings suggest that in Bangladesh Islamic banking system has a great potential to grow as the customers have an attraction towards Islamic banking because of religious sentiments. Moreover, the Islamic banking organizations need to concern more about their service qualities and customer satisfactions