Factors Affecting the Choice of Islamic Banking by the Customers: A Case Study

by Mahadi Hasan Miraz, Yeaseen Chowdhury, Dr. Md. Mamun Habib, Mohammad Ismail Majumder



Islami Bank is a Financial Institution, whose statutes, rules and procedures expressly state its commitment to the Principles of Islamic Shari’ah and to the banning of the receipt and payment of interest on any of its operation. There were plenty of previous studies but all of them were conducted by finding relationships of the factors that led to choosing Islamic Banking based on different demographics like age group, religious ethnicity, education level etc. This topic was chosen because the relationship of the most influential factor and gender was not studied in an extensive manner. For this study, an online survey and a real-time survey were conducted on the existing customers of Islamic Banks; the sample size of the study was 60. In the study an effort was made to find out what is the most influential factor that encourages people towards Islamic Banking. Moreover, efforts were also made to find out what are the factors that influence the male and female customers separately. Analyses were done with the help of charts and IBM SPSS 25.0 and it was found that Religious Preference was the factor that influenced most customers towards Islamic Banking as a whole and irrespective of gender. Islamic Banks should work hard and ensure that people don’t choose them for religious belief alone but because of the quality of services of the Islamic Banks. Keyword: Islamic Banking, influence, factor, religious preference, higher returns.

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