This study aims to examine how key stakeholders – Shariah scholars, Islamic bankers and Islamic economists – perceive the interplay and potential tensions between Shariah compliance, service quality and social well-being in realizing the Maqasid Shariah within Islamic banking.
Using a qualitative, interpretivist approach, this study draws on 18 semi-structured interviews with purposively selected participants from three stakeholder groups, supplemented by documentary analysis of relevant industry reports. Inductive Qualitative Content Analysis (QCA), aided by NVivo, was employed to capture converging and diverging perspectives.
The analysis reveals that while all three dimensions are considered integral, prioritization varies. Shariah scholars regard Shariah compliance as the non-negotiable foundation, Islamic bankers emphasize service quality as a driver of customer trust and operational success and Islamic economists place social well-being at the heart of Islamic banking legitimacy. Tensions often emerge when institutional structures treat these objectives as isolated rather than interdependent. However, participants pointed to several ways of bridging this divide. These include embedding Maqasid-aligned criteria into product design, using technology to integrate Shariah compliance and service quality, and adopting standardized metrics to measure social impact of Islamic banking.
The research is context-specific to Pakistan, focused on three stakeholder groups and based on a purposive sample, which may limit its generalizability. Future studies could adopt cross-country comparisons, longitudinal designs and incorporate customer and regulator perspectives to broaden applicability.
Findings offer actionable strategies for integrating Shariah compliance, service quality and social well-being through institutional design, performance measurement and technology-enabled solutions.
By fostering synergies among the three dimensions, Islamic banking can fulfill both its legal obligations and its societal mandate, contributing to equitable economic development and enhanced community trust.
This study contributes to the literature by offering a multi-stakeholder perspective on Islamic banking’s ethical framework. It highlights the tensions and synergies among its three core values and presents a pathway toward a more holistic and socially responsive Islamic financial model grounded in Maqasid Shariah.
