Customer Selection Criteria: Islamic Banks in South Africa

Abstract

Purpose: The purpose of this study is to investigate the selection criteria of customers in South Africa and to examine these criteria with respect to gender. Theoretical framework: This study is conducted taking into an account an Islamic worldview that is guided by Sharia (Islamic law). Design/Methodology/Approach: A quantitative approach to data analysis was used to meet the purpose of the study. The location of the study is South Africa. The population of interest were customers at Islamic banks who identified as being Muslim. An online survey was used to collect data based non-probability sampling techniques. The final sample used for data analysis consisted of 163 valid responses from Muslims throughout South Africa. Data was analyzed based on mean analysis and an independent sample t-test. Findings: The results indicate that “religious reasons only”, “Islamic reputation and image” the “economic and financial reputation” and having an “involvement in the community” are the selection criteria considered to be most important by both males and females. The criteria least considered by respondents when selecting an Islamic bank relates to “wide range of facilities offered”, “friend use this type of bank” and “higher rates of return offered”. The results also suggest that there are no significant differences in the selection criteria of customers based on gender when choosing an Islamic bank. Research, Practical & Social implications: These results can be used by management of Islamic banks in South Africa in designing policies and launching campaigns to attract new customers and retain existing customers. Originality/Value: This is the first study to consider the role of gender as it relates to the selection criteria of customers at Islamic banks in South Africa.

Service Quality Preferences Among Customers at Islamic Banks in South Africa

“…There is an accumulating body of knowledge within the South African context shedding light on the study of Islamic banking, and the different risk profile for this type of banking when compared to conventional banking (see, Kholvadia, 2017;Moosa 2018;Moosa 2022a;Moosa 2022cMoosa et al, 2021aMoosa et al, 2021b;Ramabulana & Moosa, 2022). More specifically, studies focusing specifically on customers have considered factors such as customer engagement, customer selection criteria, customer awareness, customer satisfaction and customer loyalty (Moosa 2022b;Moosa and Kashiramka, 2022;Moosa and Marx, 2023;Moosa, 2023Roberts-Lombard 2020. However, customer preference concerning service quality at Islamic banks in the South African context has received little to no attention.…”