3/21/2021

Customers’ Perception
about Islamic Banking
in Pakistan
Presented To:
Dr. Qasim Saleem
Presented By:
Group J

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Hamza
Arshad
191240002

Hassan Zeeshan
Nasir Arshad
191240039 191240004

Group
J
Bakhtawar
Rukhsar
Iqbal
191240008
191240038

Sidra Asif
191240032

Introduction
• Islamic banking refers to banking activities that adhere to the Islamic
code of conduct
• Riba/interest prohibited
• More than 300 banks around the world that comply with Islamic
principles
• Between 2000 and 2016, Islamic banks' capital grew from $200 billion
to close to $3 trillion in 2016
• Currently struggling due to the lack of qualified & trained staff for the
conduct of Islamic Banking, lack of awareness, short of products that
are available in the rivalry conventional banks

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Objective of the Study

• The objective of this study is to explore the customers’ perception
and awareness towards Islamic Banking in Pakistan and to get various
suggestions for the betterment of Islamic banks.

Literature Review
• The 20% Muslims of Singapore were aware of functions and products
of Islamic banking but non-Muslims were unaware.
• In 2007, a study was conducted in Australia to determine the
awareness about Islamic banking in Muslims unleashed a lack of
awareness in the majority about the Islamic Banking.
• Therefore, it is very important to give customer awareness and
education for the development of Islamic Banking in the developed
countries like UK.

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Research Methodology
• The study contains a descriptive paradigm
• The population of Gujranwala Division was taken as target population
for our study
• The sample size was 172
• The purposive sampling technique
• The participants were made to fill a survey form in which they were
asked about the awareness, product quality and service quality of the
Islamic Banks

Results
• Amongst 172 banking customers 31% were using Islamic banking
while 44% were using conventional banking and 25% were the
customers of the both banks

• 51% of the participants were able to understand the differences

Awareness • 46% of the participants were aware of the principle tools of
Islamic Banking

Product and • 37% showed satisfaction over quality products

• 42% of the participants were satisfied with the terms and
Service Quality conditions imposed by Islamic Banks

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Cont…

Profit Rate • 31% of the total sample participants were satisfied with the profit rates

Sharia- • 58% were satisfied with the Sharia compliance assurance

Compliance
• 61% suggested the Islamic banks to open-up more ATMs and branches

Suggestions • 53% suggested to lengthen the operation time

• 50% showed a wish for the conversion of conventional banks to Islamic
banks

Conclusion
• The study depicts a lack of public awareness, insufficiency of useful
banking products, low profit rates and inability of satisfying banking
customers about the sharia-compliance.
• In order to grow Islamic Banks need to carry out more promotional
activities and provide more interesting products to the customers,
introduce various online services, open up more ATMs and increase
their working hours.

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Thank You