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Satisfaction of Pakistan’s Islamic banking system during the COVID-19 pandemic Logistic model-based identification of the determinants to improve customer

Majed Alharthi (Finance Department, College of Business, King Abdulaziz University, Rabigh, Saudi Arabia)
Imran Hanif (Department of Economics, University of Management and Technology, Lahore, Pakistan)
Hafeez Ur Rehman (Department of Economics, University of Management and Technology, Lahore, Pakistan)
Hawazen Alamoudi (Marketing Department, College of Business, King Abdulaziz University, Rabigh, Saudi Arabia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 16 June 2021

276

Abstract

Purpose

This study aims to explore the potential determinants of customers’ satisfaction with the Islamic banking system and highlights the fact that both internal and external factors play key roles in customer satisfaction (CS) during the COVID-19 pandemic.

Design/methodology/approach

Primary data from six Islamic banks (Al Baraka Bank Ltd, BankIslami Pakistan Ltd, Burj Bank Ltd, Dubai Islamic Bank Ltd, Meezan Bank Ltd and MCB-Islamic Bank Ltd) were analysed using a binary logit method.

Findings

The results showed that internal factors such as hand sanitisation facilities, strict compliance with wearing a mask before entering the bank, the distance between customers and dealing officers, an organised network of branches (in terms of health safety protocols), the behaviour of dealing officers and extended banking hours contributed significantly to enhancing the satisfaction of Islamic banking customers during the pandemic in Pakistan. The results showed that high service charges on loans have a significant adverse impact on CS. Concerning external factors, the results showed that mass media platforms that can update customers about new services and customer transactions’ processing timing, the number of operational branches in the pandemic period, available parking space in front of a bank and recommendations from family and friends to open an account with a particular bank increase CS levels.

Practical implications

The study’s results will be helpful for the policymakers and practitioners to design such policies that can promote the Islamic banking system in developing countries such as Pakistan.

Originality/value

Under the pandemic situation, the present study highlights the internal and external determinants of Islamic banking customers’ satisfaction in Pakistan. The study provides a foundation for Islamic Banks to revise their policy frameworks and marketing strategies to attract customer interest and improve their satisfaction levels.

Keywords

Acknowledgements

Declaration of conflicting interests: The authors declare no conflict of interest.

Funding: The authors received no financial support for this research.

Citation

Alharthi, M., Hanif, I., Ur Rehman, H. and Alamoudi, H. (2021), "Satisfaction of Pakistan’s Islamic banking system during the COVID-19 pandemic Logistic model-based identification of the determinants to improve customer", Journal of Islamic Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIMA-06-2020-0189

Publisher

:

Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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