Islamic Bank Service Quality and Trust: Study on Islamic Bank in Makassar Indonesia

Abstract

Main theme that is always to be a hot topic for the management of Islamic banking is how to find an appropriateway to expand its market Islamic banking. Current market contribution of Islamic banking is only around 2% ofthe total national banking and only 1.6% of Muslims in Indonesia who use Islamic banks for their transactionsand investment. It showed that customers have low interest on Islamic bank. Objectives of this research were toanalyze the influence of service quality of Islamic bank on customer satisfaction and trust. Survey on 130respondents in the city of Makassar, Indonesia was conducted to collect information to explore the relationshipbetween customer perception of the service quality of Islamic bank, satisfaction and trust. Accidental samplingwas used to select the respondents with criteria of not an employee of the bank, have transaction of more thanonce per month and use more than one product and service of the Islamic banking. The Structural EquationModel (SEM) is used to analyze the direct and indirect relationship between Islamic bank service quality,satisfaction and trust. The findings of this research were that service quality of Islamic bank had significantly ofinfluence on customers’ satisfaction and then on their trust. Responsiveness of Islamic bank service was as thestrongest attraction for customers to the Islamic bank. On the other hand, compliance was as the weakestattraction to the Islamic bank. Customers’ satisfaction played an important role to support service quality ofIslamic bank in influencing trust.