Adnan Khan, Dr. Arshad Ali, Dr Zahid Ali, Arif Ullah


Banks plays a vital role in the socio-economic development of a country. Like in other parts of the world, Pakistan has dual banking environment with intense competition. Knowing the key triggers of patronage factors is utmost important. The aim of the study is to identify the key factors contributing towards Islamic banking patronage factors in Malakand division, Khyber Pakhtunkhwa, Pakistan. 280 customers of full-fledged Islamic banking or conventional banking with Islamic window were selected for the study. Data was collected through self-administered questionnaire designed based on the previous studies. Five pints likert scale range from very important to not important was used. Descriptive statistics and Friedman’s test were used to identify the factors associated with Islamic bank selection and their degree of importance. The results of the study revealed both religious and non-religious factors are considered by customers before opting for Islamic banking. Among the variable religiosity was most important predictor of Islamic banking, followed by friendly and cooperative staff, shariah compliant products, ATM facilities and referral by friends and family. However, banking hours cost of financing and return on investment were given less preference by customers.

Results of the study are expected to benefit the bank officials at large as most of the population lives in rural areas of Pakistan. According to Pakistan bureau of statistics, 67% of population of Pakistan consists of rural while, in Khyber Pakhtunkhwa 83.1% accounts for rural population. Furthermore, the government authorities could also get more fruitful results by focusing on the factors identified in the study before devising any strategies for rural areas.

Key Words: Riba, Islamic Banking, Religiosity, Shariah Compliance, Patronage, Non-Religious Factors


Business; Management

Full Text:



Abdel-Magid, M. F. (1981). The theory of Islamic banking: accounting implications. International Journal of Accounting, 17(1), 79-102.

Abdul Rehman, A., & Masood, O. (2012). Why do customers patronize Islamic banks? A case study of Pakistan. Qualitative Research in Financial Markets, 4(2/3), 130-141.

Al-Tamimi, H. A. H., Lafi, A. S., & Uddin, M. H. (2009). Bank image in the UAE: Comparing Islamic and conventional banks. Journal of Financial Services Marketing, 14(3), 232-244.

Asif, M., Shah, F. A., Afeef, M., & Ahmed, Z. (2016). Factors Determining the Attitude of Customers towards Islamic Banking: A Study of Peshawar, Pakistan. Abasyn University Journal of Social Sciences, 9(1).

Awan, A. G., & Azhar, M. (2014). Consumer behavior towards Islamic banking in Pakistan. European Journal of Accounting Auditing and Finance Research, 2(9), 42-65.

Awan, H. M., & Shahzad Bukhari, K. (2011). Customer's criteria for selecting an Islamic bank: evidence from Pakistan. Journal of Islamic marketing, 2(1), 14-27.

Bananuka, J., Mukyala, V., Tumwebaze, Z., Ssekakubo, J., Kasera, M., & Najjuma, M. S. (2020). The intention to adopt Islamic financing in emerging economies: evidence from Uganda. Journal of Islamic Accounting and Business Research.

Bisharat, R. M. N. (2014). Patronage factors in Islamic banks in Pakistan. Journal of Business and Management, 16(6), 108-114.

Erol, C., & El-Bdour, R. (1989). Attitudes, behaviour, and patronage factors of bank customers towards Islamic banks. International Journal of Bank Marketing, 7(6), 31-37.

Gerrard, P., & Barton Cunningham, J. (1997). Islamic banking: a study in Singapore. International Journal of Bank Marketing, 15(6), 204-216.

Hasan, S. A., Subhani, M. I., & Osman, M. (2012). Consumer criteria for the selection of an Islamic Bank: Evidence from Pakistan.


Ismail, S., Azmi, F., & Thurasamy, R. (2014). Selection criteria for Islamic home financing in Malaysia. International Journal of Business and Society, 15(1), 97.

Israr, A., Qureshi, F. A., & Butt, M. (2018). Selection Criteria of Public for Account Opening: A Case Study of Islamic Banks in Pakistan. Al-Iqtishad Journal of Islamic Economics, 10(1), 153-170.

Lee, K.-h., & Ullah, S. (2011). Customers' attitude toward Islamic banking in Pakistan. International Journal of Islamic and Middle Eastern Finance and Management, 4(2), 131-145.

Mansoor, K., & Bhatti, I. (2008). Islamic banking and finance: on its way to globalization. Managerial finance, 34(10), 708-725.

Mansour, W., Ben Abdelhamid, M., Masood, O., & Niazi, G. (2010). Islamic banking and customers' preferences: the case of the UK. Qualitative Research in Financial Markets, 2(3), 185-199.

Mehmood, A. (2002). Islamisation of economy in Pakistan: past, present and future. Islamic studies, 41(4), 675-704.

Metawa, S. A., & Almossawi, M. (1998). Banking behavior of Islamic bank customers: perspectives and implications. International Journal of Bank Marketing, 16(7), 299-313.

Mukhtar, A., & Butt, M., Muhammad. (2012). Intention to choose Halal products: the role of religiosity. Journal of Islamic Marketing, 3(2), 108-120.

Naser, K., Jamal, A., & Al-Khatib, K. (1999). Islamic banking: a study of customer satisfaction and preferences in Jordan. International Journal of Bank Marketing, 17(3), 135-151.

Okumus, H. (2005). Interest-free banking in Turkey: a study of customer satisfaction and bank selection criteria. Journal of Economic Cooperation, 26(4), 51-86.

Okumus, H. S., & Genc, E. G. (2013). Interest free banking in Turkey: a study of customer satisfaction and bank selection. European Scientific Journal, ESJ, 9(16).

Sayani, H., & Miniaoui, H. (2013). Determinants of bank selection in the United Arab Emirates. International Journal of Bank Marketing.

Shabbir, M. S. (2019). Nexus between customer preference and operation of conventional banks Islamic windows in Pakistan. Journal of Islamic marketing.

Shamshad, A. (2007). Pakistan Islamic banking–past, present and future outlook. SBP, Karachi, Pakistan.

Wajdi Dusuki, A., & Irwani Abdullah, N. (2007). Why do Malaysian customers patronise Islamic banks? International Journal of Bank Marketing, 25(3), 142-160.

Yudistira, D. (2004). Efficiency in Islamic banking: an empirical analysis of eighteen banks.


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
Sarhad Journal of Management Sciences by Sarhad University of Science & Information Technology is licensed under a Creative Commons Attribution 4.0 International License.
Based on a work at suit.edu.pk