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Understanding Islamic Bank Selection of Customers: A Field Research from Turkish Participation Banks


  • Ali Polat
  • Mehmet Yesilyaprak
  • Raci Kaya


Bank customers have a selection behavior in their banking activities. It is important to understand the factors that the customers of Islamic Banks select the banks as their financial services providers. Such understanding has many micro and macro level advantages from policy making to marketing and forecasting. This paper tries to extract important components in Islamic bank selection of the bank customers in Turkey. Principle Component Analysis (PCA) is used in exploratory data analysis to 341 customer surveys that were obtained from the customers of participation banks in Turkey. We found that three latent variables are important for the Turkish Participation Bank customers in their bank selection. The customers care for i) Islamic Banking ii) Quality Banking and iii) Fast Banking. Our literature review on Islamic bank selection and our results suggest that providing Islamic Banking is a must while alone is not enough criteria for an Islamic Bank to be selected by customers.

Suggested Citation

  • Ali Polat & Mehmet Yesilyaprak & Raci Kaya, 2014. "Understanding Islamic Bank Selection of Customers: A Field Research from Turkish Participation Banks," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 5(4), pages 22-38, October.
  • Handle: RePEc:jfr:ijfr11:v:5:y:2014:i:4:p:22-38

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    References listed on IDEAS

    1. Yvonne Saini & Geoff Bick, Loonat Abdulla, 2011. "Consumer awareness and usage of islamic banking products in South Africa," South African Journal of Economic and Management Sciences, University of Pretoria, Faculty of Economic and Management Sciences, vol. 14(3), pages 298-313, September.
    2. Walid Mansour & Mohamed Ben Abdelhamid & Omar Masood & G.S.K. Niazi, 2010. "Islamic banking and customers' preferences: the case of the UK," Qualitative Research in Financial Markets, Emerald Group Publishing, vol. 2(3), pages 185-199, October.
    3. Chong, Beng Soon & Liu, Ming-Hua, 2009. "Islamic banking: Interest-free or interest-based?," Pacific-Basin Finance Journal, Elsevier, vol. 17(1), pages 125-144, January.
    4. S. T. Katircioglu & S. Fethi & D. Unlucan & I. Dalci, 2011. "Bank selection factors in the banking industry: An empirical investigation from potential customers in Northern Cyprus," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 61(1), pages 77-89, March.
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    Cited by:

    1. Muhammad Ali & Syed Ali Raza & Chin-Hong Puah & Mohd Zaini Abd Karim, 2017. "Islamic home financing in Pakistan: a SEM-based approach using modified TPB model," Housing Studies, Taylor & Francis Journals, vol. 32(8), pages 1156-1177, November.
    2. Mohamed Wail Aaminou & Rajae Aboulaich, 2017. "Modeling Consumers’ Behavior in New Dual Banking Markets: The Case of Morocco," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-24, June.


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