Factors of Customers’ Intention to Use Islamic Modes of Financing: A Case Study of Islamic Banks in Pakistan

Zill-i-Jannat; Abdul Jamil; Dr. Nisar Khan; Dr. Shah-E-Yar Qadeem; Majid Khan

doi:10.63056/ACAD.004.04.0956

Authors

Zill-i-Jannat Ph.D. in Management Sciences, Department of Business Administration, Sarhad University of Sciences & IT, Peshawar, Pakistan Author
Abdul Jamil Department of Leadership & Management, Institute of Business Management & Administrative Science, The Islamia University of Bahawalpur, Bahawalpur, Pakistan Author
Dr. Nisar Khan Education Department, Government of Khyber Pakhtunkhwa, Pakistan Author
Dr. Shah-E-Yar Qadeem Assistant Professor, Department of Management Sciences, Qurtuba University of Science and Information Technology, Peshawar, Pakistan Author
Majid Khan Department of Business Administration, Gomal University, Dera Ismail Khan, Khyber Pakhtunkhwa, Pakistan Author

DOI:

https://doi.org/10.63056/ACAD.004.04.0956

Keywords:

Islamic banks, financing, Consumer behavior, Pakistan

Abstract

The Banking Companies Ordinance 1962, permits banks in Pakistan to provide Islamic banking (IBg) and financing modes. This study aims to examine the impact of pricing, government support, attitude and social influence on the motive of customers towards Islamic financing. Sample of study consisted of clients of five full-fledged Islamic banks (IBs) in Pakistan. Data were collected through adapted questionnaire from Peshawar and Lahore districts. The response rate was 92% and 500 questionnaires were usable. Correlation and regression used for data analysis. There are five independent variables. The findings indicate that religious obligation was insignificant factor in the intension to use Islamic modes of financing. While the significance difference was found with attitude, social influence, support by government and the cost of Islamic finances. The study’s focus on the clients of five fully operational Islamic banks is its limitation. The study can be more enriched by considering other Islamic and commercial banks involved in both commercial and Islamic financing. Islamic banks will find the conclusions of the study useful for growing their clientele.