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

Main theme that is always to be a hot topic for the management of Islamic banking is how to find an appropriate way to expand its market Islamic banking. Current market contribution of Islamic banking is only around 2% of the total national banking and only 1.6% of Muslims in Indonesia who use Islamic banks for their transactions and investment. It showed that customers have low interest on Islamic bank. Objectives of this research were to analyze the influence of service quality of Islamic bank on customer satisfaction and trust. Survey on 130 respondents in the city of Makassar, Indonesia was conducted to collect information to explore the relationship between customer perception of the service quality of Islamic bank, satisfaction and trust. Accidental sampling was used to select the respondents with criteria of not an employee of the bank, have transaction of more than once per month and use more than one product and service of the Islamic banking. The Structural Equation Model (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 of influence on customers’ satisfaction and then on their trust. Responsiveness of Islamic bank service was as the strongest attraction for customers to the Islamic bank. On the other hand, compliance was as the weakest attraction to the Islamic bank. Customers’ satisfaction played an important role to support service quality of Islamic bank in influencing trust.