Publication:
Reconciling selection criteria of Islamic banking services: a survey on perception of Islamic bankers, institutional clients and retail customers in UAE
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Date
2021
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Abstract
This paper aims to investigate the differences in patronage factors influencing "retail customers" and "institutional clients" to bank Islamically and to identify the reasons bankers perceive that their customers' bank with them in the United Arab Emirates (UAE). A total of 237; 416; and 70 balanced responses were collected from Islamic bankers, retail customers and institutional clients of UAE, respectively. Weighted average scores were computed for ranking the selection criteria factors across the data set and paired comparison analysis was conducted to analyse the variation of selection criteria between the data sets. Empirical results indicate that Islamic banking practitioners maintain an identical perception with retail customers in relation to the selection criteria of Islamic banking products and services, with the "Shari'ah-compliance" factor dominating other factors under examination. With respect to the perception regarding institutional/corporate clients, Islamic bankers exhibited a divergent perception in connection with selection criteria of Islamic banking products and services and the factor "cost and affordability" and "rates and return" are prioritized above factor "Shari'ah-compliance". The scope of the study is limited to a single country. Hence, the finding of this study cannot be generalized to the other regions. Although the study covers a considerable sample from each segment, still there is an avenue for improvement by covering more respondents into the survey. Consequently, the results of this study should be read with these limitations. Further, analysis of the variation among intra divisions of each segment such as Muslim and non Muslim with respect to retail customers; the different level of management at the banks and focusing the specific sector of the industry is beyond the scope of this study. These directions provide avenues for future research.
Keywords
Perception , Institutional clients , Islamic bankers , Islamic banks in UAE , Reconciliation of selection criteria , Retail customers
Citation
Shamsudheen, S. V., Mahomed, Z., & Ramadili Mohd, S. M. (2021). Reconciling selection criteria of Islamic banking services: a survey on perception of Islamic bankers, institutional clients and retail customers in UAE. Journal of Islamic Accounting and Business Research, 12 (1), pp. 112-130.
Publisher
Emerald Publishing Limited