Interest-free banking has become an inextricable part of economic development around the world. Taking this into account, the study investigates customers' perception of uses and awareness of various products of Islamic banks in Bangladesh through a convenience sampling technique. The findings reveal that despite the awareness of products such as mudarbah and musharaka, were not used. It is further depicted that majority of the respondents simultaneously operating their accounts with conventional and Islamic banks. It is due to insufficient branches and unavailability of some products and services with conventional banks across the country. In addition, religion is found to be the most important aspect of clients for Islamic banking. Hence, the quality of service and products must consistently be offered with the principles of interest-free finance as well as with the facilities of the conventional banks. Most of the customers are totally ignorant about interest-free products. The study suggests that Islamic banks should give more emphasize on convincing the customers to use interest-free products and services facilitating the growth of Islamic banks in Bangladesh.
Keywords: Interest-free banking; Customers' perception; Bangladesh