Knowledge and Perception of Students Regarding Islamic Banking: A Case Study of Hyderabad Sindh Pakistan

Abstract

This research investigated the relationship between the university student’s perception and knowledge about different concepts and terms used in the Islamic banking and products and services offered. Impact of age, gender, area of study, area of residence, CGPA and family’s monthly income on the perception and knowledge of students about Islamic banking was also analyzed. Data was collected from the postgraduate students (Respondents # 60) selected randomly from two public sectors universities (Sindh Agriculture University Tando jam and University of Sindh) along with one private sectors (ISRA) university of Hyderabad. Simple linear regressions were used in order to check the impact of socioeconomic characteristics on the knowledge and perception of students. University students were mainly surveyed to assess the knowledge and perception of country’s intellectual cream of Islamic banking crop. Results showed that religious sincerity, not the better knowledge of Islamic banking was the strongest predictor of personal banking performances. Result reflected that overall perception and knowledge of students was significantly different from zero. Result suggested that students had better perception about the Islamic banking but poor knowledge. It was found that the Arabic language in specifying the products and services hindered the understandings of the students. Coefficient of age and income showed a positive relation with the perception and knowledge of students regarding Islamic banking in both public sector universities and Private Sector University. Result for area of study also displayed positive relation with the perception and knowledge of students regarding Islamic banking. Gender, area of residence and CGPA were not statistically significant which means these did not affected significantly on the perception and knowledge of students about Islamic banking however in case of private Sector University CGPA  count to be factor, significantly effecting the perception of students.

Keywords: Islamic banking, perception, knowledge, products and services.