Islamic Finance in Practice

It is important to mention that the level of competition in the emerging markets is such that banks must continually ensure that they are maintaining their quality of service by strengthening customer loyalty, responding to the customer¿s need, defining customer segmentation, ensuring competitive advantage, maintaining corporate profitability. Islamic banks must therefore be alert to the need for consolidating their position by diversifying banking products and providing a high quality of service. Islamic banks are facing many challenges confronting them in the current circumstances of open markets and globalization. Thus cost, profitability, customer satisfaction, customer retention, marketing success and high financial performance are most crucial factors to business success. This study has used developed SERVQUAL model, questionnaire, structure interview, empirical analysis and financial analysis to achieve it is goals. This study argues that management competence allocation of sufficient funds to develop liquidity management tools and diversifying the financial and investments portfolios will enable Islamic banks to sustain the niche market they are aiming to occupy.