Islamic bank selection criteria in Nigeria: a model development

Abstract

Purpose The purpose of this study is to develop a model for the study of Islamic bank choice and to test the significant importance of the constructs that influence bank customers to choose Islamic bank in a pluralistic-secular nation. Design/methodology/approach Total of 348 conventional and Islamic bank customers were sampled. Five-point Likert-type question containing 27 bank selection items was used in collecting primary data. Cronbach’s alpha, composite reliability and average variance extracted are used to test the reliability and validity of the instrument. Also various descriptive statistics, exploratory factor analysis and one sample T-test are equally used in analyzing the work. Findings Exploratory factor analysis identified four factors. They are Islamic ethics, convenience, Islamic bank services awareness and physical evidence. Furthermore, the factors that show significant importance in the choice of Islamic banking are Islamic ethics and Islamic bank services awareness. The result equally shows that people are aware of Islamic banking. Practical implications This study provides insight on the factors that influence the selection of Islamic banking, an innovative banking concept. This study has obvious management and theory implications. Also, the study will assist the bank managers in developing effective marketing strategy to increase the market share. Originality/value This study reports Islamic banking selection criteria in a pluralistic-secular Nation. The study also developed a model that can be used in studying the choice of Islamic bank in special type of environment. Thus, Islamic banking is a new reality in the Nigerian financial scene.

What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh?

“…Customers' positive attitudes play a significant role in any bank's success, and this attitude helps attract a new customers for banking transactions [2][3][4][5][6][7][8][9][10][11]. This is also true for Islamic banks.…”

“…Islamic banks should not be mainly concerned with price competition in this regard. More customers would patronise Islamic banks if they promoted more ethical principles [6]. According to Hadi and Muwazir [7], Islamic banks should priorities both aspects.…”

Migration (Hijra) to Islamic bank based on push–pull–mooring theory: a services marketing mix perspective

“…For example, a study of banking behavior in Indonesia showed that it is necessary for Islamic banks to implement more comfortable waiting areas with more comfortable seats (Aisyah, 2018). Although some studies have reported that customers were satisfied with most of the physical aspects of Islamic banks, such as their internal layout, the suitability of the furniture and their architectural designs, it has been shown that these factors are not the main factors that have significant influence in customers choosing an Islamic bank (Dusuki and Abdullah, 2007;Ezeh and Nkamnebe, 2019). The results suggest that the pull factors of Islamic banks are low enough that there is no incentive for Muslim customers to switch banks.…”

Are participation and conventional banks operating under the same roof really different? Evidence from Turkish bank clients

“…As seen in the Table 1, many studies have been conducted in different Islamic geographies in the world to evaluate PBs. In these previous studies, researchers mostly focused on the bank selection criteria (Abdul Hadi and Muwazir, 2020; Awan and Shahzad Bukhari, 2011; Ezeh and Nkamnebe, 2020; Mansour, 2019; Mehar et al , 2019; Rusydiana and Hasib, 2019; Tesfaye et al , 2019) of PB clients. Besides, some authors (Hosen et al , 2021) researched the service quality perceptions of PB clients.…”