Customer Satisfaction Standards According to Islamic and Conventional Banking System in Pakistan


  • Dr. Aijaz Ali Khoso Professor, Department of Islamic Studies Al-Hamd Islamic University, Islamabad Campus.
  • Dr. Muneer Ahmed Head of the Department of Islamic Studies, Al-Hamd Islamic University, Islamabad Campus
  • Dr. Muhammad Shoaib Khan Pathan Assistant Professor, Government College University Hyderabad.



Conventional Banking, Islamic Banking, Awareness, Customer Satisfaction, Usage, Pakistan, Understanding


This study analyzed consumer loyalty with Islamic banks and ordinary banks in Pakistan. The historical backdrop of regular banks in Pakistan is superior to that of Islamic banks. The improvement of an Islamic financial framework in Pakistan is at an untimely stage. In Pakistan, not many banks offer clean Islamic financial administrations to their clients. This concentrate likewise analyzes consumer loyalty with the administrations of traditional banks as well as Islamic banks. Our objective region is the Pakistani financial area, and the information comes from interviews with five Islamic banks and five ordinary banks in Pakistan. The aftereffect of this exploration showed that the clients of the two banks were from Islamic banks or traditional banks were happy with the offices given by the banks, notwithstanding, the clients of regular banks were happier with Islamic banks. Hypothetically, current investigations supplement the writing on the above viewpoints and connection them to consumer loyalty. Simultaneously, it causes to notice the factors that are fundamental for the advancement of Pakistan's Islamic financial framework. The discoveries likewise give important data and direction to Islamic banks to plan creative item advancement procedures and publicizing approaches to hold existing clients and draw in possible clients. This study extends the extent of the accessible writing on Islamic banking; However, it doesn't address the situation of the ordinary financial area.


Anderson, T, Case, G and Taraporevala, Z (1997) “Who will Survive the Bankcard Market” ABA Banking Journal, Vol.89, No.5, pp.55-64.

Anderson, J. C. and J. A. Narus (1990), “A Model of Distributor Firm and Manufacturing Firm Working Relationships, Journal of Marketing”, Vol.54, No.1, pp.42-58.

Ariff, M. (1988). “Islamic Banking”, Asian Pacific Economic Literature, Vol.2, No.2, pp.46-64.

Awan, H, M., and Bukhari K, S., (2011) “Customer’s criteria for selecting an Islamic bank: evidence from Pakistan”, Journal of Islamic marketing, Vol.2, No.1, pp.14-27.

Beatty, S. E., Mayer, M., Coleman, J. E., Reynolds, K. E. and Lee, J. (1996), “Customer-sales associate retail relationships”, Journal of Retailing, Vol.72, No.3, pp.223-47.

Biter, M. J and Hubbert, A. R. (1994) “Encounter satisfaction versus overall satisfaction versus quality”, in Rust, R. T. and Oliver, R. L. (Edi), Service Quality: New Directions in Theory and Practice, Sage, London.

Brady, M. K, Cronin, J. J and Brand, R. R. (2002) “Performance only measurement of service quality: a replication and extension”, Journal of business research, Vol.55, No.1, pp.17-31.

Clemes, M.D., Gan, C. and Kao, T.H. (2007b) “University satisfaction: an empirical analysis”, Journal of Marketing for High Education, Vol.17, No.2, pp.292-325.

Collis, J., Hussey, R. (2003) “Business Research”, Basingstoke: Macmillan.

De Vries, H., and A. De Jong (2002) “Dutch study gets up close and personal to iso 9000 in use”, Iso Management system.

DeYoung, J. (2001) “The Internet's place in the banking industry”, Chicago Fed Letter, No.163, pp.1-4.

Gait, A. H., Worthington, A. C. (2009) “A Primer on Islamic Finance: Definitions, Sources, Principles and Methods”, Department of Accounting, Finance and Economics, Discussion paper No. 009-09, ISSN no. 1836- 8123, Griffith University.

Gursoy, D., Swanger, N., (2007) “Performance-enhancing internal strategic factors: impacts on financial success”, International Journal of Hospitality Management, No.1, pp.213–227.

Hansemark, O. C. and Albinsson, M. (2004) “Customer satisfaction and retention: the experience of individual employees”, Managing Service Quality, Vol.14, No.1, pp.40-57.

Haron, S and Ahmad, N (1994) “The effects of conventional interest rates and rate of profit on funds deposited with Islamic banking system in Malaysia”, International Journal of Islamic Financial Services, Vol.1, No.4.

Haron, S., Ahmad, N. and Planisek, S.L. (1994) “Bank patronage factors of Muslim and non-Muslim customers”, International Journal of Bank Marketing, Vol.12, No.1, pp.32-40.

Hassan, T., Mohamad S and Bader, M, K (2009) “Efficiency of conventional versus Islamic banks: evidence from the Middle East”, International Journal of Islamic and Middle Eastern Finance and Management, Vol.2, No.1, pp.46-65.

Hegazy, I. (1995) “An empirical comparative study between Islamic and commercial banks’ selection criteria in Egypt”, International Journal of Commerce and Management, Vol.5, No.3, pp.46-61.

Iqbal, Z. and Mirakhor, A. (2007) “An Introduction to Islamic Finance: Theory and Practice, Chichester”, John Wiley and Sons Ltd.

Jamal, A and Naser, K. (2002) “Customer satisfaction and retail banking: an assessment of some of the key antecedents of customer satisfaction in retail banking, International Journal of Bank Marketing, Vol.20, No.4, pp.146-160.

Kettinger W. J., and Lee, C. C. (1994) “Perceived service quality and user satisfaction with the information services function”, Decision Sciences, Vol.25, No.6, pp.737-766.

Khattak A, N., and Rehman K (2010) “Customer satisfaction and awareness of Islamic banking in Pakistan”, African Journal of Business Management, Vol.4, No.5, pp.662-671.

Leeds, B. (1992) “Mystery Shopping' Offers Clues to Quality Service”, Bank Marketing, Vol.24, No.11, pp. 24-27.

Liao, Z., and Cheung, M. T. (2008) “Measuring consumer satisfaction in Internet

banking: a core framework”, Communications of the ACM, Vol.51, No.4, pp.47–51.

Litan, R, E, (1999) “ATM fees, an economic analysis”, available at: [Accessed: 23/03/2011].

Lovelock. C., (2000), “Services, Marketing: People, Technology, Strategy”, 4thed, Prentie -Hall, Englewood Cliffs, NJ.

Mcandrews, J, J, (2003) “Automated Teller Machine network pricing- A review of literature, available at [Accessed at: 23/03/2011].

Meuter, M., Ostrom, A and Roundtree, R (2000) “Self-service technology: Understand customer satisfaction with technology-based service encounters, Journal of Marketing, Vol.64, No.3, pp.50-64.

Nupur, J, M, (2010) “E-Banking and Customers’ Satisfaction in Bangladesh: An Analysis”, Vol.4, No.4, pp.145-156.

Omer, H. (1992), “The implications of Islamic beliefs and practice on the Islamic financial institutions in the UK: case study of Albaraka International Bank UK”, unpublished PhD thesis, Loughborough University, Leicestershire.

Parker, M. (2007) “Malaysia’s Islamic Banking Gathers Steam”, Arab News, Vol.23

Parasuraman, A., Berry, L. L. and Zeithaml, V. A. (1991) ”Refinement and reassessment of the SERVQUAL scale”, Journal of Retailing, Vol.67, Vol.4, pp.420-50.

Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., and Pahnila, S. (2004) “Consumer acceptance of online banking: An extension of the technology acceptance model”, Internet Research, Vol.14, No.3, pp.224–235.

Raihan, A (1998) “Information technology and electronic banking”, Bank parikrama, Vol.23, No.3, pp.4.

Raihan, A, Khan, S, R., Alam, M. R. and Rabbi, K. (2001) “Computerization and IT in banking sector: Hindrances and Remedies”, Bank Parikrama, Vol.26, No.1, pp.95-133.

Ranganathan, C., and Ganapathy, S. (2002) “Key dimensions of business-to- consumer

Web sites”, Information and Management, Vol.39, No.6, pp.457–465.

Rose, Peter. S (1991) “Commercial Bank Management”, Richard D. Irwin Inc., United State of America.

Stewart, K. (1998) “An exploration of customer exit in retail banking”,

International Journal of Bank Marketing, Vol. 16, No.1, pp.6-14.

Taylor, S.A., Baker, T.L. (1994) "An assessment of the relationship between service quality and customer satisfaction in the formation of consumers' purchase intentions", Journal of Retailing, Vol.70, No.2, pp.163-1778.

Yoon, C, (2010) “Antecedents of customer satisfaction with online banking in China: The effects of experience”, Computers in Human Behaviour, Vol.26, pp.1296-1304.

Zaher, T., Hassan, M. (2001) “A Comparative Literature Survey of Islamic Finance and Banking”, Financial Markets Institutions and Instruments, Vol.10, No.4, pp. 155-199.

Zeithaml, V. and Bitner, M. (2000), “Services Marketing – Integrating Customer Focus across the Firm”, 2nd ed., McGraw-Hill, New York, NY.




How to Cite

Khoso, D. A. A. ., Ahmed, D. M. ., & Khan Pathan, D. M. S. (2022). Customer Satisfaction Standards According to Islamic and Conventional Banking System in Pakistan. International Research Journal of Education and Innovation, 3(2), 185–194.

Most read articles by the same author(s)