Determinates Of Interest Free Banking Services in Some Selected  Commercial Banks Operating In Jigjiga City

Abdulahi, Mohamed

dc.contributor.author	Abdulahi, Mohamed
dc.date.accessioned	2025-07-21T08:52:40Z
dc.date.available	2025-07-21T08:52:40Z
dc.date.issued	2025-04
dc.identifier.uri	http://ir.bdu.edu.et/handle/123456789/16760
dc.description.abstract	As Islamic finance continues to expand globally, understanding its localized implementation in emerging markets has become increasingly important. This study investigates the determinants, challenges, and opportunities shaping the performance of Interest-Free Banking (IFB) services in Jigjiga City, Ethiopia, where the majority of the population adheres to Islamic financial principles. The primary objective is to explore how institutional, customer related, product based, and technological factors influence the effectiveness and sustainability of IFB services in a culturally distinct and underserved market. To achieve this, a mixedmethods research design was employed, combining quantitative analysis using Partial Least Squares Structural Equation Modeling (PLS-SEM) based on survey data from 98 IFB customers, with qualitative insights drawn from interviews with bank managers and IFB officers. This integrative approach enables both empirical measurement and contextual interpretation of the drivers behind IFB performance. The quantitative findings reveal that institutional readiness, customer engagement, and compliance with Sharia-based product design significantly enhance customer satisfaction and service performance. In contrast, technological infrastructure had a negligible effect, largely due to its similarity with conventional platforms and lack of cultural adaptation. Qualitative data further revealed key challenges, including staff unfamiliarity with local religious practices, limited access to standalone Islamic digital services, and underutilization of strong latent demand for Shariacompliant banking in the region. The study concludes that the success of IFB in Jigjiga is driven less by technological advancement and more by ethical compliance, cultural sensitivity, and institutional trust. Accordingly, it recommends that banks adapt their services and staffing strategies to reflect the religious and cultural values of their target communities, and avoid applying one size fits all digital solutions that may lack local relevance.	en_US
dc.language.iso	en	en_US
dc.subject	ACCOUNTING AND FINANCE	en_US
dc.title	Determinates Of Interest Free Banking Services in Some Selected Commercial Banks Operating In Jigjiga City	en_US
dc.type	Thesis	en_US