E-1: ISLAMIC BANKING STAKEHOLDERS’ SATISFACTION: PERSPECTIVES OF EMPLOYEES AND CUSTOMERS

Abstract

The study of Islamic banking (IB) perceptions has been an important topic of research in the past three decades especially after the Islamic banking initiative flourished in various regions of the world in the late 1970s. After the emergence of the Islamic banking paradigm in the early 1960s, the IB model slowly and steadily progressed and appeared as a reckoning force in the global financial landscape. There have been numerous research studies assessing the perceptions and satisfaction levels of customers regarding Islamic banking, but this study is unique in the sense that it covers both the demand and supply side of the Islamic banking sector by involving two of the most important and direct stakeholders of Islamic banking including IB customers and employees of Islamic banks. The research study takes into consideration various factors pertinent to Islamic banking customers’ satisfaction and working conditions/environment at Islamic banks from the context of Islamic banks’ employees to provide a holistic viewpoint regarding the perceptions of these two vital stakeholder segments of the Islamic banking industry in Pakistan. The research entailed a survey-based approach to analyze the opinions of IB customers and employees. The data was fetched through structured questionnaires from 600 respondents and was subsequently analyzed by applying statistical data analysis techniques. The research findings showed that the two stakeholder groups held a favorable stance regarding Islamic banking and overall, the respondents provided very positive feedback regarding various aspects of customers’ satisfaction and the working environment at Islamic banks. The respondents asserted that the Islamic banking products and services as well as work conditions and environment at Islamic banks are conducive. The positive research results affirm that the stakeholders have a favorable outlook toward the Islamic banking sector and also signal promising prospects despite obstacles and formidable competition from the conventional banking sector.