Why do Pakistani Customers Patronize Islamic Banks?

Abstract

The article is aimed to explore the factors perceived important by the Pakistani customers in the selection of Islamic banks. To accomplish this purpose, the data was collected through a self administered questionnaire from 150 customers of Islamic banks operating in the district Sahiwal, a city of Pakistan. The items mentioned in the questionnaire were first ranked through their mean scores and latter grouped them into six factors through the exploratory factor analysis technique. The resultant factors are: the provision of comfortable internal environment; the better economic returns; the element of convenience and the provision of fast and efficient services; the maintenance of Islamic reputation and the provision of financial assistance to its customers; the employees’ kind and courteous behaviour; and the factor of employees’ development. The findings suggest that Islamic bankers can no more rely on marketing strategy of attracting pious and religious customers who give importance to the element of Islamicity in the financial products rather need to focus on the factors mentioned above.