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assurance and 0.777 for empathy, 0.769 for tangibility, 0.747 for reliability, 0.717 for shariah compliance
and 0.673 for responsiveness but it was significant (p = 0.000).

5. Discussions and Conclusions

The results confirmed that the six dimensions (tangible, reliability, responsiveness, assurance, empathy,
and compliance with Shariah) are distinct constructs. The results indicated that Islamic banking service
quality consisting of six dimensions has appropriate reliability and each dimensions have a positive
significant relationship with Islamic banking service quality.
For Malaysian Islamic banking service quality, responsiveness was the key driver of service quality,
followed by reliability, assurance, Shariah compliance and tangibility respectively. It means that Islamic
banking in Malaysia should improve the assurance perspectives such as guarantee competence, courtesy,
credibility, and security to customers by organization’s staff and adapt using their knowledge.
In addition to the responses of attitudes towards Islamic banking, there were no significant
differences between Muslim and non-Muslim customers. In the context of the history banking
relationship, most of them have had banking experience and dealt with Islamic banking for more than one
year. The greater the number of years’ relationship between customers with their banks, the higher degree
of their customers in holding the bank accounts. It is advantageous for Islamic banking to maintain a
long-term relationship with their customers.
In general, this study highlights that service quality of Islamic banking in Malaysia give high impact
on customer satisfaction. Islamic banks need to improve the relationship between bank and customers,
and this is based on customer trust towards the principles of Shariah (compliance) used in creating that
relationship. In the Malaysian banking context, Muslim customers’ trust in Islamic banks may be linked
to customers perceiving that products and services are running with Shariah principles. One explanation
for this could be that respondents may have believed and feel that the operations of Islamic banking
system are consistent with Islamic principles, as the mechanisms to ensure that Islamic banks are Shariah
compliance are numerous. The legitimate of Islamic banks operations are strongly backed up by the
Central Bank of Malaysia and Shariah Advisory Council to assist and supervise the compliance aspects.
This confidence is based on the customer’s belief that Malaysian governance rules sufficiently supervise
Islamic banks. This has significant impact on consumer behavior decisions and influences their
perceptions towards Islamic banks.

References

[1] Muslim Amin, Zaidi Isa, An examination of the relationship between service quality perception and
customer satisfaction A SEM approach towards Malaysian Islamic banking, International Journal of
Islamic and Middle Eastern Finance and Management Vol. 1 No. 3, (2008) 191-196
[2] Samraz Hafeez, Bakhtiar Muhammad, The Impact of Service Quality, Customer Satisfaction and
Loyalty Programs on Customer’s Loyalty: Evidence from Banking Sector of Pakistan, International
Journal of Business and Social Science Vol. 3 No. 16 (2012) 201-202

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