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Article
Publication date: 29 March 2011

Khaliq Ahmad, Ghulam Ali Rustam and Michael M. Dent

University students have a clear need for bank accounts as they have fees, expenses and cash needs. The usefulness of a current account is therefore pre‐evident and Islamic banks…

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Abstract

Purpose

University students have a clear need for bank accounts as they have fees, expenses and cash needs. The usefulness of a current account is therefore pre‐evident and Islamic banks need to focus on their brand image and the services they offer. Indeed, understanding bank selection from Muslim customer's perspective can provide useful information to banks' senior management to help them allocate resources and design products that promise to attract and better satisfy customers. Literature collected so far suggests a strong Islamic brand reputation as well as better financial and banking services are the main factors which influence the selection of a brand. The purpose of this paper is to test this within a positivistic empirical framework and amongst the younger generation in Malaysia.

Design/methodology/approach

The sample was based on 300 students at the International Islamic University of Malaysia. The study utilised five selection criteria based on previous research, personal experience and interview with bank officials and university students. The study also provides some insight into the younger generation's awareness of Islamic banking and the processes involved in the selection of their preferred brand.

Findings

It would seem that whilst the importance of religion is a major driver in the choice of Islamic banking the fundamental differences between Islamic and conventional banking are poorly understood. What is important is brand, ease of use and the quality of the customer interaction.

Originality/value

The paper investigates the factors which determine a customer's choice of a particular bank and provides insights into cementing relationships with existing customers as well as how to gain new ones.

Details

Journal of Islamic Marketing, vol. 2 no. 1
Type: Research Article
ISSN: 1759-0833

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