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The main purpose of this research study was to identify the level of customer’s satisfaction by using the products and services of both Islamic and conventional banks in Pakistan. Furthermore, this research study determined the customer’s satisfaction level in banking in terms of; internet banking, management interaction and the banking environment, service quality in term of SERVQUAL model, ATM facilities, privacy and security The main objective of the study was to investigate the following main points.(1) Customer`s satisfaction level in Islamic and conventional banks. (2) Why customers prefer to choose Islamic banking system in Pakistan? (3) Why customers prefer to choose conventional banking system in Pakistan? It is therefore, a critical literature has been carried out which investigated the real factors through which customer satisfaction take place in banking sector. The closed ended questionnaire has been used in this research study in order to collect research data. To analyze the collected data, cross tabulations and charts have also been used which showed the satisfaction level of the customers of Islamic and conventional banks and also to differentiate between the participant`s responses of Islamic and conventional banks. A large number of factors have been observed from the research study analysis which illustrated that, in Pakistan, customers are more satisfied from the products and services of conventional banks rather than that of Islamic banks. However, in Pakistan, the customer satisfaction in all financial institutions is not as good as according to the standard. In addition, the banking sector is trying to improve all of their products and services and want to make them according to the international standard. But due to various factors such as; the political instability and religious norms, the banking sector is still far behind.

Customer Satisfaction Level in Islamic Banking and conventional Banking (A Case of Pakistan)