Customer relationship of islamic banks

Abstract

This paper investigates the key aspects of relations with customers in Islamic Bank, which operates on the market of Bosnia and Herzegovina. It is primarily concerned with research into establishing and maintaining positive relationships with clients and how these relationships can improve client satisfaction and loyalty towards the bank. The paper examines the importance of building trust through transparency, security and consistent adherence to the highest ethical standards. The paper contains two questionnaires, one filled in by clients and the other by customers of the bank. In both studies questionnaire participants were contacted directly. Questionnaire participants were selected by sampling - probability method. 200 questionnaires were distributed to bank employees, 160 were properly filled out and returned, 200 were also distributed to customers, and 146 were filled out and returned. When we talk about research related to employees, the findings reveal that a majority of respondents agreed to all statements related to organizational and technological factors, which affect the CRM implementation. We used the CARTER model in the research related to customers. The results of the research showed that customers value "Reliability" the most, and compliance the least. Compliance is an important component of CARTER model and this is the only variable which measures the Islamic aspect of banks. Bosna Bank International should pay more attention towards compliance. Building a positive relationship with customers is not only a strategic goal, but also a fundamental pillar of successful bank operations in today's competitive environment. BBI Banka is the only Islamic bank on this market, therefore compliance is a major competitive advantage of this bank.