PwC ‘voice of the customer’ on growth strategies for Islamic Banks
Islamic banks may be missing a huge opportunity within the Muslim population due to a perception gap, according to a PwC report What customers want, a voice of the customer survey of GCC banking customers. A perception seems to exist amongst customers, and potential customers, of Islamic banks that they may not be true to Shari’ah values – in the survey only 52 per cent of Islamic banks customers agreed that their provider ‘was an Islamic bank and followed Islamic Shari’ah’.
This perception gap amongst banking customers is also a huge opportunity, says PwC; for banks that can more clearly communicate and demonstrate their Islamic values, the benefits could be substantial. PwC commissioned a survey of more than 500 retail banking customers in the GCC, to find out what customers really want; the findings of which they say can help inform the growth strategies of the region’s banks.
However, better communicating and demonstrating Shari’ah values is just one of the areas Islamic banks should consider as part of their strategy to compete, differentiate and grow; the findings also suggest that service levels are lacking – non-Islamic banking customers were more likely to agree with the statement “My bank provides a fast service” than Islamic bank customers. But again, there is opportunity says PwC, as customers are willing to switch to Islamic banks if they feel that service levels at least match what they get from non-Islamic (or conventional) banks. So, enriching the customer experience can help to drive growth.
“The findings of our Voice of the customer survey suggest that part of the reason customers may not be entirely convinced by Islamic finance may be due to the industry’s tendency to mirror conventional banking products,” said Ashruff Jamall, PwC Partner and Global Islamic Financial Services Leader. “There are huge opportunities for the region’s Islamic banks to grow; expanding populations and economies, with a high proportion of Muslims, create a market with huge potential. But to achieve that potential, Islamic banks will need to address this perception issue and also improve service levels to be competitive with other banks – Islamic and non-Islamic – from a customer service perspective.”
The survey was conducted during September 2014. All 540 respondents, male and female, between the ages of 18-64, currently use a bank for personal banking needs. Survey respondents are based in the UAE, KSA, Bahrain, Qatar, Kuwait and Oman.
Source: cpifinancial-PwC ‘voice of the customer’ on growth strategies for Islamic Banks
