Islamic Banking in Pakistan: An Attitudinal Study of Customers

Abstract

The purpose of this research paper is to study the attitudinal differences of Pakistani customers about Islamic Banking System. This paper investigates the positive relationship of customers’ attitude with demographics, services, religious beliefs and financial stability of Islamic banks. This relationship is examined by gathering data from customers working in different cities of Pakistan. A questionnaire consisting standard scale, using five point likert scales (zero designated for no weightage, while four for the highest) was administered. The result of the study revealed that independent variables like demographics, services, religious beliefs and financial stability of Islamic banks have positive relationship with the dependent variable i.e. customer attitude towards Islamic Banking in Pakistan. Any conclusion of this research could not be affixed as a rule of thumb for the entire population of Pakistan because the data collected for this paper was collected on random basis from a small sample size. Similarly, there are far too many attributes of Islamic banking & finance which influence the behavior of consumers, all of which could not be covered by this study. It is hoped, that by using this research, Islamic banking can identify and introduce more innovating products and services in accordance with Islamic Shariah.

Keywords: Islamic Banking, Attitudes, Demographic, Religious, Pakistan.