Determinants of Bank Choice in Afghanistan
DOI:
https://doi.org/10.31436/jif.v9i1.390Abstract
Afghanistan is a country with a 99% Muslim population. It was believed that subsequently after the emergence of Islamic banking in the country, the conventional banks would weaken and gradually disappear from the society. But today, the situation is not as expected, even in the presence of Islamic banking, a larger part of the market is still captured by conventional banks. For whys and wherefores, this study deals with a comprehensive descriptive discussion in determining the factors influencing the choice between Islamic and conventional banking. The study also aims to assess the level of awareness of people regarding Islamic banking products. Moreover, the study considers determining the future willingness of conventional banking customers to switch to Islamic banking. Besides, the study also includes a part to understand the reasons for the slow growth of Islamic banking in Afghanistan. The outcome of this study can help Islamic banks to assess their weaknesses and take new steps for improving their products. As a result, the researcher recommends that Islamic banks and windows operating in Afghanistan should focus on developing new marketing strategies, arrange certain seminars to create Islamic banking awareness among people. Furthermore, they should focus on introducing new Shariah-based products as per the market needs and should not only rely on their Islamic image. Moreover, Islamic banks should consider all those factors discussed in this study which influence customer’s choice in today’s highly competitive banking industry.
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