An Empirical Study on Perception of Service Quality in Islamic Banking Sector of Bangladesh

Abstract

In today's global and border less market, service quality is gaining importance for successful survival of banks. This study examines the perception of bank customers regarding service quality of the Islamic banks as well as conventional banks in Bangladesh. This study is important due to an emerging trend of Islamic banking practices in Bangladesh besides conventional banking to replace Riba based products with the sharia'h compliance products. Data were collected from 720 bank customers by using stratified random sampling. It is found that the perception of customers of Islamic banks regarding service quality is higher than the perception of customers of conventional banks. The results indicate that there is significant difference in perception of service quality among customers of Islamic banks on the basis of gender but there is no significant difference in service quality perception of male and female customers of conventional banks. This study enables policy makers and bankers to make effective and quality oriented arrangements to have satisfied and delighted customers for long term benefits.