The Impact of Knowledge, Perception and Acceptance risk on the Adoption of Islamic Banking in Pakistan

Abstract

Purpose: The purpose of this research is to discover the ignored risks like acceptance level, existing knowledge and perception of people towards Islamic Banking and its impact on the adoptability of Islamic Banking Practices in Pakistan. The idea of this doing this research is to come up with remedies to overcome this major issue, which is becoming a hurdle in the advancement of Islamic Banking Sector in Pakistan. Design/Methodology/Approach: To conduct the research, four hypotheses have been made and quantitative data technique is used to conduct the research. The sample size is 300 people out of which 243 people responded. Questionnaires have been circulated among students, employees (both banking and non‐banking), business professionals and others (professionals or non‐professionals). Findings: The findings from the analysis were positive and in the favor of constructed hypothesis. Limitations of the Study: The major limitations faced were small sample size, Limited Islamic banks prevailing in Pakistan from which data is collected, experience specific answers obtained from the research. Recommendation: After going through the whole research process, we recommend that the risk of knowledge, perception and acceptance risk should be minimized to increase the adoption of Islamic Banking in Pakistan. Moderating variables should be explored further in order to get more accurate results.