A Comparative Study of Customer Satisfaction in Islamic and Conventional Banks

Abstract

Customer satisfaction remains a key indicator of success and sustainability in the banking sector. With the parallel operation of Islamic and conventional banking systems in many countries, especially in Muslim-majority regions like Pakistan, the question arises—how do customers perceive their satisfaction across these two models? This study aims to compare customer satisfaction in Islamic and conventional banks, focusing on service quality, ethical perception, product offerings, and overall customer experience. Using a mixed-method approach, data were collected from 300 bank customers (150 Islamic and 150 conventional) through structured questionnaires and semi-structured interviews. Quantitative analysis was conducted using SPSS, while qualitative responses were thematically analyzed. The findings suggest that while both banking models exhibit strengths, Islamic banks generally score higher in terms of ethical trust and personal attention. Conversely, conventional banks often outperform in technology integration, ease of access, and product variety. This comparative insight is essential not only for banking professionals aiming to improve their services but also for policymakers striving to build a more inclusive financial system. The study concludes by offering recommendations to both banking models on how to enhance customer satisfaction through value-driven services, transparency, and technology adoption.