Drivers of customer’s perception on Islamic banking in Tanzania: a case of National Bank of Commerce (NBC)
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Date
2020
Authors
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Journal ISSN
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Publisher
University of Dar es Salaam
Abstract
The aim of the study was to explore the drivers of customer’s perception on Islamic banking in Tanzania. Data was collected through interviews involving National Bank of Commerce customers in Dar es Salaam who were not Islamic banking users. A total of 23 customers were interviewed and content analysis was employed to analyse data. The study findings revealed that customer’s knowledge drives perception of Islamic banking. Even though customers are aware of Islamic banking existence but they don’t have knowledge on product package, unable to describe the products, unaware of costs associated as well as they are unfamiliar with Islamic banking terms and conditions. Furthermore, society around customers does not support customers to use Islamic banking as they are not knowledgeable about the products. This drives customer’s perception on Islamic banking as customers’ values advice from the society, share bank information with the society they are living seeking for their approval. The study revealed that majority of the respondent was not ready to recommend Islamic banking to others as they don’t understand Islamic banking in details. Service providers drive customer’s perception of Islamic banking as providers themselves do not motivate customers to use Islamic banking product, they provide poor customer service, inadequate advertisement and limited availability especially in rural areas. It is recommended that customers knowledge and society in general to be increased using appropriate advertisement channels. Service providers need to improve quality of service offered, increase product availability and motivate customers to use Islamic banking.
Description
Available in print form, Dr. Wilbert Chagula Library. East Africana Collection, (THS EAF HG3397.T34M427)
Keywords
Banks and banking, Islam Bank customers, Perception, National bank of commerce (NBC), Tanzania
Citation
Mkate, N.A. (2020). Drivers of customer’s perception on Islamic banking in Tanzania: a case of National Bank of Commerce (NBC). Masters of dissertation, University of Dar es Salaam. Dar es Salaam