Factors Influencing the Behavioural Intention to Adopt Islamic Banking in Pakistan with the Mediating Role of Attitude

Abstract

In Pakistan, the understanding percentage of products offered by Islamic banks is less than 8%, and it is the biggest challenge for the Islamic financial system to increase the compassion level of people about their laws offered products and services. This study investigates the relationship between attitude, perceived behavioural control, perceived ease of use, perceived usefulness, subjective norms, and intention to investigate the low adoption of Islamic banking in Pakistan. The study also analyses the mediating role of attitude and willingness to adopt Islamic banking. Partial least square structural equation modeling was used to examine the hypotheses. The findings revealed that attitude, subjective norms, perceived ease of use, and perceived usefulness significantly impact the intention to use Islamic Banking. Similarly, subjective norms, perceived usefulness, and perceived ease of use significantly impact attitude. However, perceived behavioural control does not substantially affect attitude and intention to use Islamic banking. Moreover, the study also revealed a significant mediating role of attitude between subjective norms, perceived usefulness, perceived ease of use, and intention to adopt Islamic Banking. These findings indicate that Banks should target the public and start a campaign through electronic and print media. Banks should provide information about their rules and regulations, which are genuinely according to Shariah, ultimately leading to people's positive attitude toward adopting Islamic banking.