CUSTOMER SATISFACTION AND AWARENESS TOWARDS INTEREST FREE BANKING IN OROMIA INTERNATIONAL BANK

Abstract

The emergence of Interest Free banking system has created a new dimension to the current economic models and financial developments. Hence, use of such innovations is highly appreciated even if its implements depends on the customers intentions. Therefore, this study is concerned with examining the level of customers awareness and satisfaction about interest free banking products in the case of OIB because, customers are ultimate users of the products to be adopted. The study used both primary and secondary data. The secondary data was collected from reports, directives, review of books, magazines and browsing of internet while the primary data was collected through questionnaire having open end, close end and Likert scale forms of measurement. The collected data was analyzed using descriptive analysis like tables and percentages. The finding of the study depicts customers of the bank are less aware, majority of the customers are Muslims, most of them are satisfied the service offered by the bank but there is a room for improvement in order to meet their needs, most of the respondent believe that IFB offers a product and a service that they would like to use and most of the respondents believe that insufficient advertisement on the products. In addition the result indicates IFB can potentially serve as an alternative banking channel in filling the gap left unaddressed by conventional banking and economic development, idle monetary resource mobilization and allocation ,inviting to use banking system, creating employment opportunity. Based on the findings of the study, plausible courses of action were forwarded by the researcher based on the conclusive results of the findings in conjunction with literature review reflections: sufficient advertisement must be done, banks and concerned stakeholders must promote the product and create awareness to the society, enhancing the performance of existing staff through continuous training.