The determinants of opening account with Islamic banks
ISSN: 1759-0833
Article publication date: 8 July 2020
Issue publication date: 8 July 2020
Abstract
Purpose
The Islamic banking system is not very primordial, but recently it is getting popular. Now it becomes a prominent topic to investigate what are the reasons behind it and how it happens. This study aims to identify the influencing factors in the time of opening account in Islamic banks.
Design/methodology/approach
A descriptive and factor analysis method were carried out to collect the quantitative data using a validated structured questionnaire. This study is based on a survey of 300 clients from Bangladesh who have at least one bank account in any Islamic banks in Bangladesh.
Findings
The findings of the study revealed that the most important factors influencing the people to open an account in Islamic banks including high Riba (Interest) on saving, ATM facility, confirmation SMS on the transaction, availability of branch service in several locations, lower cost on financing (loan), low initial deposit fee for account opening, employees’ prompt service and their behavior, etc. Also, the other religious people, rather than Islam, start a banking relationship with Islamic banks without any obligation.
Research limitations/implications
The study focused only on a certain area of Bangladesh. This study could be extended for a different target market, creative strategy, other media and more countries.
Practical implications
The paper provides guidelines to the management of Islamic banks to decide to attract more customers by focusing on the influencing factors that manipulate a person to open a bank account.
Originality/value
The research is original. There are very few studies available on this topic, particularly focusing on Bangladesh. Consequently, the research findings have significant implications for Islamic banks functioning in a predominantly Islamic atmosphere.
Keywords
Acknowledgements
Compliance with Ethical Standards: All activities performed in the study that involved human participants were following the ethical standards of the institutional or national research committee and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards.
Declarations of interest: On behalf of all authors, the corresponding author states that there is no conflict of interest.
Funding: The authors have no funding sources to report.
Citation
Sen, S., Antara, N. and Sen, S. (2020), "The determinants of opening account with Islamic banks", Journal of Islamic Marketing, Vol. 12 No. 9, pp. 1709-1733. https://doi.org/10.1108/JIMA-04-2020-0110
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited