Professor and Director Academics
Iqra University
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Customer acceptance toward Islamic personal financing in Pakistan

Journal of Financial Services Marketing

Indexing : Scopus, ABS, ABDC

The present study is the first attempt in Pakistan to examine the determinants of Islamic personal financing by using a modified theory of reasoned action (TRA) model. This study uses the two primary constructs of the TRA model: subjective norm and attitude. Additionally, this study modified this model by introducing three relevant factors: pricing of Islamic personal financing, a religious obligation, and government support to predict the intention of Islamic bank customers about Islamic personal financing. Sample data were conveniently drawn from the Islamic bank customers with the help of a self-administered survey-based questionnaire. The study sample comprised 484 responses of full-fledged Islamic bank customers located in the biggest city of Pakistan. Out of 484 responses, this study considered 471 responses and ignored 13 responses due to incomplete information provided by the customers. The data was statistically analyzed by employing Structural equation modeling SEM. Overall, the study results suggest that pricing of Islamic personal financing and religious obligation has a negative and significant impact on the intention to use Islamic personal financing; however, attitude and social influence were found to be positive but insignificant predictors. In addition, government support is positive and significantly associated with using Islamic personal financing. This study has some practical implications for Islamic bank managers and the government of Pakistan. Furthermore, Islamic banks should capture the need for Islamic personal financing, while government support may help promote this service for Islamic banks in Pakistan.


Personal financing, Islamic banks, Customer intentions, Pakistan

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