Determinants of customer loyalty towards Islamic Banks: evidence from Bangladesh

Abstract

This research aimed to identify the factors that significantly influenced customer loyalty toward Islamic Bank. For this research, 280 clients of Islamic banks in Bangladesh were surveyed. In order to determine what factors influence client loyalty in Islamic banks, this study used structural equation modeling. The study identified customer satisfaction, trust, and religious belief as significant positive determinants of customer loyalty. Moreover, customer engagement in Islamic banks mediates the relationship between customer satisfaction, customer trust, and religious belief with customer loyalty. In addition, customer engagement in Islamic Bank positively increases customer loyalty in Bangladesh. By considering these significant findings, the Islamic banks in Bangladesh might enhance their customer loyalty.