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== Top 20 FREQUENT WORDS ==
islamic 258
customers 215
banks 143
banking 116
services 105
products 87
bangladesh 78
satisfaction 69
service 69
customer 66
relationship 48
selection 47
journal 46
savings 43
income 41
usage 40
years 36
behavior 35
awareness 34
deposit 34



== DOCUMENT KEY POINTS ==
*by collecting data from a sample of customers of islamic banks researchers conducted a comprehensive profile analysis a number of chi square tests and t tests and found a number of key findings as to the behavior of islamic bank customers in bangladesh
*finally a religious principles is the key bank selection criterion of the islamic bank customers while customers demography plays some role in determining which selection criteria matter more than others do

*moreover the need for understanding of customer behavior of bank customers becomes more intense as competition in the financial services industry is more vigorous than ever as service menu of the firms are becoming alike rose marquis

*banking behavior of islamic bank customers in bangladesh such acceptance of islamic banks in bangladesh various private commercial banks and international banks in bangladesh started offering various financial products services in accordance with islamic principles hassan
*to find out whether there is any relationship between the bank selection criteria and customers demography among islamic bank customers in bangladesh

*banks use such funds with the permission of the customers and at the sole risk of the banks and hence the depositors of this type of account are not entitled to any share in the profit earned by the bank ahmed rahman ahmed ali sarker ibbl
*for ease of explanation the products and services are discussed under two broad categories deposit mobilization sources of funds and financing facilities uses of funds ahmed rahman ahmed ibbl

*when the venture ends the manager of capital ie the entrepreneur pays the entire capital back to the bank along with an agreed proportion of profit
*on the other hand by receiving advance payments for commodities the seller can use the money for meeting various financing needs particularly any working capital requirements ahmed rahman ahmed ibbl

*the portion of the asset owned by the bank is leased out to the client for use under specific conditions like rent and then the client buys the bank s portion upon agreed upon terms ibbl
*according to various authors a the main aim of this loan is to help needy people in a society in order to make them self sufficient and to raise their income and standards of living ahmed rahman ahmed ibbl

*the customers of islamic banking rather include a wide array of people cutting across various religions now what are the things to be considered while measuring customer satisfaction leeds showed in a study that about of the banking customers mentioned teller courtesy as a prime consideration in choosing a bank
*commercial banks efforts to attract or retain existing customers should focus on the following issues kaynak harcar behavior of bank employees bank service charges extra services offered by the bank confidence in the bank positive bank image and convenience

*following a similar study conducted by metwa and almossawi the current study measured customer satisfaction with various products services of islamic banks and with four basic elements of the service delivery system of islamic bank employees physical facilities of the bank location and evening late banking hours
*bank customers in most cases evaluate commercial banks on the bank employee dimension when they place a heavy emphasis on positive staff attitude knowledgeable staff friendliness of bank personnel employee professionalism courtesy of personnel and timely employee responses to correspondence

*in a recent study cohen et al asserted that customers age groups and level of education contributed to explaining respondents propensity to stay with their current banks metwa and almossawi in a study on behavior of islamic bank customers in bahrain considered age income level of education and nationality as important socio demographic variables in associated with customer behaviors
*young adults appreciated the modern equipment problem solving willingness of staff to help explanations of the services given friendliness courtesy professional knowledge of the staff and the location of the branch

*from a survey in the usa anderson cox and fulcher found that convenience customers selected recommendation by friends as the most important factor followed by location reputation service charges and friendliness of bank staff whereas the service customers ranked availability of credit as the most important factor followed by reputation recommendation by friends friendliness of staff and interest charged on loans

*banking behavior of islamic bank customers in bangladesh boyd leonard and white investigated the importance of bank selection criteria in terms of the age of the head of the household
*almossawi revealed that young customers place more emphasis on factors like a bank s reputation availability of parking space near the bank friendliness of bank personnel and those related to automated teller machines atms such as their availability in several convenient location and hours availability of atm service

*data required for fulfilling the objectives of the study were collected from customers approached at the counters of the following five islamic banks in dhaka city of bangladesh namely islami bank bangladesh ltd al arafah islami bank ltd
*was excluded from the study as it was listed as a problem bank and now bangladesh bank taken over it for reconstruction bangladesh bank bangladesh bank

*though no recent compensation surveys are available to validate such arguments one may still argue given the observation in reality so rife that a large number of entry and mid level position holders in the public and private sector of bangladesh are most likely to have a monthly basic salary in the range from bdt to bdt
*customers profile a summary of findings on customer profile along three variables age level of income average monthly income of the respondent and level of education has been presented in table

*customers track of banking relationship the track of banking relationship has been presented across two variables customers previous relationship with traditional banks and customers length of relationship with islamic banks table
*customers awareness and usage of islamic banks products services table shows the proportion of respondents that are aware of and are using different islamic bank products or services as available in bangladesh

*banking behavior of islamic bank customers in bangladesh as for various borrowing products except quard baimuajjal baimurabaha hire purchase under shirkatul meelk musharaka izara bil baia and bai salam customers do not have a high awareness for any particular one for bai muajjal for bai murabaha for hire purchase under shirkatul meelk for musharaka for izara bil baia for bai salam

*customers awareness of the availability of different banking products services does length of relationship with islamic banks play any role the p value derived from the chi square test table shows that in case of current account savings deposit term deposit musharaka izara bil baia quard local documentary bill purchased foreign documentary bill purchased bai salam swift and locker service customers awareness of the availability of products services does not depend on customers length of relationship with islamic banks
*in case of the following products services customer awareness depends on the length of customers relationship with islamic banks savings bond at significance level baimuajjal at significance level baimurabaha at significance level hire purchase under shirkatul meelk at significance level letter of credit at significance level and atm services at significance level

*table also presents the fact that customers usage of the following products services are dependent on customers level of income baimuajjal at significance level hire purchase under shirkatul meelk at significance level musharaka at significance level local documentary bill purchased at significance level bai salam at significance level letter of credit at significance level and atm services at significance level
*it can be observed from these findings that customers with higher reported income have the tendency to borrow for various long term personal and business purposes and thus income level has association with the usage of musharaka hire purchase bai muajjal letter of credit etc

*satisfaction with basic elements of service delivery systems of the four service delivery systems of the islamic banks namely employees physical facilities of the bank location and evening late banking hours according to mean scores the highest satisfaction came from the evening banking hours table
*the results as derived after testing the above hypothesis for each product service table shows that hire purchase under shirkatul meelk musharaka izara bil baia local documentary bill purchased foreign documentary bill purchased baisalam letter of credit and swift require immediate attention as none of these products services have customer satisfaction significantly above average level

*bank selection criteria of islamic bank customers the result of the descriptive statistical analysis presented in table reveals that the most important bank selection criterion among islamic bank customers in bangladesh according to mean score is that islamic banks follow islamic principles of banking
*to better understand the problem area in the service delivery systems the following hypotheses stated in general for the four basic elements of service delivery systems has been tested for each element

*from the frequency analysis it is found that majority of the people above years of age put the least importance on the rate of return criterion
*journal of islamic economics banking and finance null hypothesis islamic bank customers have an average preference for each bank selection criterion ie h

*there is relationship between customers awareness of islamic bank products services and customers length of relationship with islamic banks in case of the following products services only savings bond baimuajjal baimurabaha hire purchase under shirkatul meelk letter of credit and atm services
*customers high concentration in this income category is consistent with the findings of age category since entry and mid level executives and professionals both in the private and public sector of the age category years tend to have a similar level of basic monthly income

*however customers did not report an above average satisfaction with the following products services most of which are borrowing products for customers hire purchase under shirkatul meelk musharaka izara bil baia local documentary bill purchased foreign documentary bill purchased bai salam letter of credit and swift

*any attempts to introduce any products service particularly the ones that have a fixed amount of profit upfront instead of a ratio of profit sharing that may have substantial similarity with the traditional banking products services should be thoroughly explained on the basis on islamic principles and should be checked for customers acceptance
*one step towards this would be to find out ways for improving customer satisfaction with employees and for improving satisfaction with the products services that did not receive above average satisfaction from employees

*banking behavior of islamic bank customers in bangladesh table profile of the respondents variable categories percent less than years age years years more than years lower than bdt bdt bdt bdt level of income bdt bdt more than bdt level of education below high school high school college bachelor above college bachelor master or phd source field survey data note us dollar bangladeshi taka bdt
*less than years length of relationship with islamic banks to less than years to less than years years and more source field survey data

*not enough evidence to reject null shirkatul meelk hypothesis
*banking behavior of islamic bank customers in bangladesh table results for tests of hypotheses for above average satisfaction with islamic bank products services types of calculated t value conclusion products services for hypothesized population mean current account

*thank you for your cooperation part a demographic information what is your age a less than years a years a years a more than years what is your average monthly income a lower than bdt a bdt a bdt a bdt a bdt a bdt a more than bdt what is your level of education a below high school a high school a college bachelor a above college bachelor master or phd part b history of banking relationship
*what is the length of your relationship with islamic banks a less than years a to less than years a to less than years a years and more part c satisfaction with islamic bank products services

*banking behavior of islamic bank customers in bangladesh type of product service awareness usage yes no yes no satisfaction current account savings deposit term deposit savings bond baimuajjal baimurabaha hire purchase under shirkatul meelk musharaka izara bil baia wazirat bil wakala quard local documentary bill purchase foreign documentary bill purchased bai salam letter of credit atm services swift reuter locker service visa card
*highly satisfied satisfied not sure whether satisfied or not satisfied dissatisfied highly dissatisfied employees physical facilities of the bank location evening late banking hours


 ''Please note, This is an auto generated summary based on sentances position in the document and other factors''
== DOCUMENT WORD ANALYSIS ==
=== Main Category ===
: AlHuda Material\islamic banking


=== KeyWords ===
islamic risk murabaha minimum iifs NA customers financing customer banking profit credit maximum shariah underlying limit service corporate required mode



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== DOCUMENT REFERENCES ==


=== Number of Pages ===
36


=== Published Date ===
2008-07-10 07:21:58


== Full Document ==


[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/IslamicBanking/Banking%20Behavior%20of%20Islamic%20Bank%20Customers%20in%20Bangladesh%20by%20.pdf Read the Full Document]


[[Category:Islamic Finance]]

[[Category: Islamic Banking]]