Islamic Banking: Role of Customer’s Perception and Awareness to make it competitive with Conventional Banking
DOI:
https://doi.org/10.58932/MULD0013Keywords:
Islamic banks, Financial practices, Public perception & awareness, MuzaffarabadAbstract
The present study aims to highlight the issues related to the growth of Islamic Banking. Because of various modes of Islamic banking, the banking system is growing not only in Muslim countries but also in non-muslim countries. Likewise, Islamic banking is also growing in Pakistan in terms of its market capitalization as well as its banking accounts. However, despite the dominance of Muslims in the Islamic Republic of Pakistan, the growth of Islamic banking is not up to expectations. The present study aims to highlight the issues that create hurdles in the growth of Islamic banking. Based on the survey from the users and non-users of banking, the study postulates the reasons for the slow growth of Islamic banking. This study analyzes the customers’ perception and awareness level towards the IBI. It further investigates the relationship between different demographic variables and the perception and awareness of customers. A sample of 267 respondents from different regions of Muzaffarabad was selected. For the analysis, descriptive statistics & Logistic regression was adopted to check the relationship between demographic variables and perception and awareness. The respondents expressed their perception of some of the services and expressed dissatisfaction with few. Customers indicate that they are aware of different products but do not adopt these products.
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