The importance of service quality in British Muslim’s choice of an Islamic or non-Islamic bank account

Abstract

Using an extended SERVQUAL model, this study identifies and compares the importance of service quality to Muslim consumers with an Islamic or non-Islamic bank account in a non-Muslim country, Britain. Eight group discussions and survey with 300 Muslims were conducted. Five dimensions of service quality were identified, i.e. Responsiveness, Credibility, Islamic Tangibles, Accessibility and Reputation. These differ in structure and content from the original SERVQUAL developed in the west and the subsequent CARTER model constructed in a Muslim country. In addition, significant differences were found in the importance rating of items by respondents holding an account with an Islamic bank compared to those with a non-Islamic bank account. This study is one of the first to identify and compare the importance of service quality between Islamic and non-Islamic bank account holders in a western non-Muslim country. The results advance our understanding of the impact of culture on SERVQUAL. The study provides insight into Muslims' bank choice and helps bank managers of both Islamic and non-Islamic banks to focus their attention on the service quality dimensions that matter most to Muslim customers.

Marketing Islamic Financial Services: A Review, Critique, and Agenda for Future Research

“…The Islamic banking system is thriving in several non-Muslim majority secular countries including, Australia (Rammal and Zurbruegg 2007), Britain (Abdullrahim and Robson 2017), Singapore (Gerrard and Cunningham 1997), and in several other Asian and European countries (see Fang 2016;Åström 2013). This trend is driven by calls to reconceptualize sharia and its role in business in many secular countries (e.g., Islam and Rahman 2017).…”

“…In the case of the United Kingdom, Hussain (2014) argues that Islamic finance will flourish if financial service firms create more awareness among the customers about the availability of the services. Abdullrahim and Robson (2017) investigated the importance of service quality among the U.K Muslim customers and reported that the adoption of products depends on proper service delivery by financial institutions. Several other European studies (e.g., Trakic 2012; Kaakeh et al 2018; Hamad and Duman 2014; Volk and Pudelko 2010) have also advocated the adoption of Islamic finance in their respective countries, yet they narrowly focused on customer behavior issues leaving a wide gap on the overall marketing of Islamic finance in many European countries containing sizable Muslim population.…”

Allah, Villa, Volvo: Muslim Professionals in the Nordic Countries and Their Financial Attitudes and Practices

“…One early study about the extent of actual demand for Islamic banks was carried out in England in 2004 and concluded that Muslims with higher education and from the north of England were more likely to want such services (Dar 2004 (Maurer, 2006: 10) More recently, we should mention one research project from Macedonia (Abdullahi and Shaharuddin, 2016), one from Barcelona (Abdulkader et al, 2018) and one from Britain (Abdullrahim and Robson, 2017). These studies vary in research focus and methods but they all try to say something about the awareness among local Muslim populations concerning Islam and financial practices.…”

The Impact of Service Quality, Technology Acceptance and Religiosity on The Selection of Islamic Bank and FinTech – Investigating The Stagnation of Indonesian Islamic Banking

“…Poor service quality will elicit sharp criticism that will easily become an issue in communities. Hence, management is required to pay more attention and establish appropriate strategies to maintain service quality [9]. Bank management should realize that the cost of acquiring new customers is very expensive, as well as the cost of losing loyal customers who are not satisfied with the services [24].…”