Impact of Assurance, Reliance, and Compliance on Customer Satisfaction: Insights from Islamic Banks in Pakistan

Abstract

This study examines the influence of assurance, reliance, and compliance on customer satisfaction within the Islamic banking sector in Pakistan. The study utilized a quantitative research design to distributestructured questionnaires to customers and employees of Islamic banks, aiming to capture diverse perspectives on service quality. Data were analyzed using Structural Equation Modeling (SEM) via Smart PLS to validate the relationships between the constructs based on the adapted SERVQUAL model. The findings demonstrate significant positive impacts of assurance, reliance, and compliance on customer satisfaction. Assurance was shown to instill confidence in customers; reliance underscored the importance of dependable banking operations, and compliance with Shariah laws was critical in aligning services with customers' ethical and religious expectations. These insights are precious for Islamic banks seeking to enhance customer satisfaction and loyalty in a competitive market. The study contributes to the existing literature by providing empirical evidence from the Pakistani context and suggesting practical implications for improving service delivery in Islamic banking. Limitations and directions for future research are also discussed, emphasizing the need for broader geographical coverage and longitudinal studies.