FACTOR EFFECTING TO ADOPT ISLAMIC BANKING

Abstract

Purpose The main objective of the study is to examine the factor the contribute in the adoption of Islamic banking by using the diffract variables including Religion, marketing and promotion, awareness of IB product and service, Branch Network, awareness of IB financial system. This will help to identified the gap ofslow growth of Islamic banking. Methodology & Design The present study in nature descriptive. The current research is conducted particularly on Pakistan to understand and determine the factors that influence the customer to acceptance of interest free banking the respondents are chosen by convenience-based sampling, one of the techniques called non-probability techniques is used to gather information from the sample of interest that are conveniently available. Convenience sampling technique is generally used to obtain a huge size of completed surveys promptly and with economy Findings Results revealed that the there is significant perceived acceptance criteria of interest free banking. The criteria include factor of importance, form the most significant awareness regarding financial system of Islam, branch networking, religion, marketing and promotion, product and services. Hence, results would be worthwhile for the Islamic banking sector of Pakistan. The customer perception and preference regarding Islamic banking and to stimulate it strategically and for the concern authorities in promoting specific regulation and polices that complement the market share ofIB. Limitations Limitation of the study is that the current study used convenient sample technique. Another limitation of the study is the questionnaire speeded only few cities of Pakistan an due to COVID-19 sample size is not so good nor we can visit to banks physically to get better results. Recommendations For future studies probability sampling recommended as the current study used convenient base sampling that is one ofthe important limitations of the research recommended to future researches to do a comprehensive assessment between Muslims and Non-Muslims banking customer and various religion of Pakistan in order to get accurate outcomes in the acceptance of interest free banking. more the selection criteria although the current chosen variable have impact but their level of impact is very low. therefor for the future more comprehensive structure incorporated to measure the people believe toward the acceptance of interest free banking.