FACTORS INFLUENCING ISLAMIC BANKING ADOPTION: EVIDENCE FROM PAKISTAN

This study aims to examine the major factors influencing the Islamic Banking (IB) adoption of Pakistani customers. The data is collected from 279 conventional bank customers based in Rawalpindi and Islamabad. A descriptive statistical analysis, discriminant validity, and regression analysis are used to perform the analyses. With religious beliefs, values, life trends and banking behavior reveal that bank reputation, Islamic banking performance, and its compatibility impacts the usage intention positively and significantly. The perceived risk and complexity cast a negative influence on the intention of Islamic banking customers. Further, finding shows that the buyers of IB products have limited knowledge in Pakistan. This study could assist the practitioners as well as academicians in developing appropriate and effective policies to fascinate potential consumers. Regarding originality, this study is among the earliest studies conducted in the Pakistani context using Roger's diffusion innovation theory to interpret the intentions of the customers to adopt Islamic banking. (C) 2020 INT TRANS J ENG MANAG SCI TECH.