Factors Affecting Customer Retention In Islamic Banks: A Case Study Of Pakistan

Abstract

Purpose- This study aims to investigate key factors that affect customer retention in the Islamic bank industry of Pakistan.

Research methodology- For this purpose, the study data were collected through a survey of 390 respondents from 5 full fledge Islamic banks in Pakistan. To analyze the data, multiple regression was employed through SPSS.

Findings-The study findings provide a plausible explanation for the positive and significant impact of service quality, trust, and religiosity on customer retention, but the brand image has a negative impact on customer retention in Islamic banks. 

Research implications- The finding of this study will be beneficial for the top management of Islamic financial institutions to more focus on services by increasing the level of customer service quality and trust to attain new customers while also retaining existing ones.

Originality/Value – This study is unique to test the diversified factors that affect the intention of Islamic banking customers in Pakistan.