Customer Behavior towards Depositing Money In Islamic Banks

Abstract

The purpose of this study is to evaluate the customer behaviour towards depositing money in Islamic banks in Pakistan. The methodology used to achieve the objectives was to conduct a survey from the customers of Islamic banks in Islamabad region. The sample generated a response rate of 89.5%. The statistical analysis of the survey results revealed that the economic conditions, Islamic teachings and profit/return seeking intentions of customers have positive associations with the saving behaviour of depositors in the Islamic banks. The analysis revealed a positive association between dependent (saving behaviour of depositors in Islamic banks) and independent variables (economic conditions, Islamic teachings and profit/return seeking). It has been recommended that by effectively incorporating the Islamic teachings in marketing efforts, Islamic banks can attract more depositors. In addition, high profit or return may also attract the greatest number of depositors in Islamic banks. The future research can enhance the scope of research by expanding the size and diversity of the sample.