Exploring Service Quality and Customer Satisfaction in Islamic Banking: A Multidimensional Approach


  • Shahbaz Nawaz School of Quantitative Sciences, University Utara Malaysia, 06010 Kedah, Malaysia
  • Muhammad Zahid Fazal M.Phil. Political Science, Political Science Department BZU Multan
  • Fakhra Mustafa M.Phil. National College of Business Administration & Economics (NCBA&E), Multan, Pakistan
  • Muhammad Zahid Fazal M.Phil. Political Science, Political Science Department BZU Multan
  • Aaqib Sajjad PhD, University Utara, Malaysia


Islamic Banking, Customer Satisfaction, Service Quality, Servqual, Shariah Compliance, Financial Services


This study investigates the relationship between service quality dimensions and customer satisfaction in the context of Islamic banking in Pakistan. Utilizing the SERVQUAL model, this research assesses how tangibles, reliability, responsiveness, assurance, and empathy influence customer satisfaction among both internal and external customers. A structured questionnaire was distributed to a stratified random sample of customers across multiple Islamic banks, and data were analyzed using Smart PLS to evaluate the relationships. The findings reveal significant positive impacts of all five service quality dimensions on customer satisfaction, highlighting the critical role of comprehensive service quality in enhancing customer experiences in Islamic banking. These results not only affirm the relevance of traditional service quality dimensions in the unique context of Islamic banking but also underscore the importance of Shariah compliance in customer perceptions and satisfaction. The study provides actionable insights for bank managers and policymakers aiming to optimize service delivery and promote customer satisfaction in the growing market of Islamic finance. Recommendations are offered for enhancing each dimension of service quality to better meet the needs and expectations of Islamic banking customers.