DETERMINE THE PATRONAGE FACTORS IN SELECTING AN ISLAMIC BANK IN KARACHI

Abstract

Purpose Main purpose of this study is to find out that which factors possess a strong support in selecting an Islamic bank. This study highly focuses on the individuals in Karachi, Pakistan. A country with developed Islamic finance system and culture different in respect to other Muslim countries. Methodology/sample The study involved use of questionnaires filled by 304 Islamic Bank clients. The respondent individuals belonged to different age groups, social classes and areas of residence. To analyze the data, Regression, ANOVA and Coeeficient tests were applied. Data from four different Islamic bank (Meezan bank, Dubai Islamic bank, Bank Islami and A1 baraka Bank) and the data was collected from the city Karachi. Findings The analysis results clearly suggested that individuals in Pakistan specifically in Karachi are preferring Islamic banking over conventional banking. Clients are also considering several patronage factors like trust, Islamic law and customer service for choosing an Islamic bank. Practical Implications The outcomes of the research might help the Islamic banks to identify how the customer in Pakistan select an institution for financial services. This may help in making decisions for creating more value to the customers and strategies to attain more market share. It can also help in development of Islamic banks in Pakistan