Abstract:
Purpose: The purpose of this research is to identify the switching behaviors of
customers from conventional banks to Islamic banks in Sri Lanka.
Design/Methodology/Approach: A quantitative research approach is used in the
study. It was carried out via an online survey of banking customers in the Kandy
district of Sri Lanka and the sample of the study included 230 from the bank
customers. SPSS Software was used to analyze the data.
Findings: This study found that the majority of the customers are switched from
conventional banks to Islamic banks for various purposes. This study can identify
that Islamic banks provide a more satisfactory service than conventional banks
and found that switching of bank customers from a conventional bank to an
Islamic bank was influenced by profitability, better financial services, Sharia
compliance and satisfaction with banking innovations.
Practical implications: In Sri Lanka's financial sector, Islamic banking is a
comparatively recent banking service. This study identifies the variables that
encouraged those bank customers to switch to Islamic banks from conventional
banks. Implementing the required marketing strategies is beneficial for the
growth of Islamic banking industry.
Research limitation: Switching behavior refers to the practice of customers
switching from one service provider to another. This research was limit to the
Kandy district based Islamic banking and finance customers.
Originality value: This study has contributed to the development of banking
sector like Islamic banks and develops their marketing strategy. Identifying the
switching behaviors of customer is most important to Islamic banking sector to
development of the financial industry of country
