Perception of Islamic Banking Products in University Students of Pakistan

Abstract

To examine and analyze the relationship of knowledge, perceived usefulness, shariah compliance, social influence and understanding of Arabic terminologies with perception of Islamic banking products. This research targets university students of Pakistan as they are potential and current users of Islamic Banking Products, and it is important to measure their perception. An online survey questionnaire was filled by 269 students of Islamabad, Karachi, and Lahore. The data from these questionnaires was analyzed through “Partial least square structural equation modeling (PLS-SEM)” with the help of SmartPLS software. The descriptive analysis was done with the help of “Statistical Package for the Social Sciences (SPSS)” Knowledge, Perceived Usefulness, Shariah Compliance, Social Influence are found to be in a positive relationship with perception of Islamic banking products. Whereas understanding of Arabic terminologies have no relationship with perception of Islamic banking products. The researcher had to distribute the questionnaire online due to covid-19 situation. The time was very short to get a larger sample size. Marketing teams of Islamic Banks should create awareness through social media marketing, and they should develop games for youth where they can play and learn about Islamic Banking Products. Operations of Islamic Banking should change in a way that customers can differentiate the products of Islamic and conventional banks easily.