A study on service quality of Islamic banks and conventional banks in Pakistan

Abstract

This study examines the perception of bank customers regarding service quality of the Islamic banks as
well as conventional banks in Pakistan. In today's global and border less market, service quality is gaining
importance for successful survival of banks. This study is important due to an emerging trend of Islamic
banking practices in Pakistan besides conventional banking to replace Riba based products with the
sharia'h compliance products. Data were collected from 720 bank customers by using stratified random
sampling. It is found that the perception of customers of Islamic banks regarding service quality is higher
than the perception of customers of conventional banks. The results indicate that there is significant
difference in perception of service quality among customers of Islamic banks on the basis of gender but
there is no significant difference in service quality perception of male and female customers of
conventional banks. The study has a number of implications for bankers, policy makers and academicians.
It provides a guideline to Islamic banks for provision of marketable products to meet expectations of male
and female customers according to their specific requirements. This study enables policy makers and
bankers to make effective and quality oriented arrangements to have satisfied and delighted customers for
long term benefits. Academicians are required to conduct research in the banking sector for beautiful
blending of theory and practice to analyze the quality of services for increased satisfaction among bank
customers.