Bank Patronage Factors of Muslim and Non‐Muslim Customers

Abstract

A fiercer level of competition is becoming the most influential factor in the structure and activities of the banking system around the globe. Banks are competing not only with themselves, but also with other financial institutions within the financial industry. In a plural society such as in Malaysia, the competition is becoming fiercer with the existence of the Islamic bank, which was established specifically to cater for the needs of the Muslim population in the country. To attract more customers, both conventional and Islamic banks should have information on factors used by customers in selecting their banks. Investigates how Muslims and non‐Muslims select their banks and what services they use frequently. Results show that there are many similarities between Muslims and non‐Muslims in their selection of banks and utilization of services.