ISLAMIC BANKING SERVICES PRACTICE IN CASE COMMERCIAL BANK OF ETHIOPIA

Abstract

Islamic banking is one of the fastest growing segments in the financial industry with a tracking of 10 -15% growth over the past three decade globally, quality service delivery is a mandatory to compete in the bank industry, The purpose of this study is to evaluate Islamic banking service practice in case CBE fully fledged Islamic branches as a case study. The study adopted modified SERVQUAL measurement dimensions such as (Human Skill, tangibility, online banking, empathy, and Bill integrity) based on shariah principles for customer satisfaction. The research design used was descriptive statics (mean and standard deviation )to shows each independent variables practices on customer satisfaction ,among the sample size 194 IFB customers of CBE only 155 respondents were returned the questionnaire, the collected questionnaire were analyzed using SPSS Version 20. The results reflects all the service quality dimensions (Human Skill, tangibility, online banking, empathy, and Bill integrity) as such a good relationship with customer satisfaction. The finding of the analysis showed that, all of service dimensions providing by a fully-fledged Islamic branches are not according to customers expectation and shariah principles thus CBE full-fledged Islamic banks improved in all aspect of SERVQUAL dimensions practices for customer satisfaction and sustain in the rivalry bank industry.