STUDENTS` KNOWLEDGE AND PERCEPTION ABOUT CONVENTIONAL VERSUS ISLAMIC  FINANCE

Received: 25.04.2021; Revised: 28.06.2021, Accepted: 05.07.2021, Published Online: 31.07.2021

Muhammad Suhail

Department of Statistics, the University of Agriculture AMK Campus Mardan Pakistan; msuhail88@aup.edu.pk;

Ali Sajid

LSPS, The University of Lahore, Pakistan; ali.sajid@lsps.uol.edu.pk;

Hina Saleem

IBIT, University of the Punjab Lahore Pakistan; hsaleem@ibitpu.edu.pk;

Bilal Durrani

IBMS, the University of Agriculture Peshawar, Pakistan; bilaldurani@ymail.com;

Shahid Jan

IBMS, the University of Agriculture Peshawar, Pakistan; shahid_finance@yahoo.com

Ijlal Haider

IBMS, the University of Agriculture Peshawar, Pakistan; haidersijlal29@gmail.com

Muhammad Idrees

IBMS, the University of Agriculture Peshawar, Pakistan; muhammad.idrees@aup.edu.pk

Iqra Babar

College of Statistical and Actuarial Sciences, University of the Punjab Lahore Pakistan; iqra.babar@ucp.edu.pk;

Abstract

The current study was carried out in the educational sector of Peshawar to find out the perception of students and customer satisfaction for riba/interest rate and quality of service in both Islamic and conventional banking. The public sector universities were taken as the population of the study and the University of Agriculture Peshawar was taken as the sample of the study. The study used to collect data from the 200 students of business degree (both finance and non finance). The data from these students were collected by closed ended questionnaire based on 5 Likert scale measurement. The regression model was adopted for the data analysis for finding the effect of riba and service quality on the Islamic bank customer satisfaction and student perceptions; while the independent sample t-test was adopted for the difference of perception for customer satisfaction among the finance and non finance students. According to the regression model; Riba and quality of service both have significant effect on the customer satisfaction and student perception as well. The results of independent sample t-test showed that there is a significant difference between the finance and non finance student’s perception for customer satisfaction and knowledge of Islamic and conventional banking. The riba and service quality are the main factors in the customer satisfaction and the student perception.

Keywords: Islamic, Conventional, Banking, Perception, Knowledge