Abstract
Islamic banking facilitates Muslims to comply with their
religious obligations while fulfilling their banking needs. Surprisingly,
adoption of Islamic banking services remains low compared to conventional banking in various Muslim countries. The objective of this
qualitative study is to explore why conventional banking customers dont
adopt Islamic banking services in Pakistan. Semi-structured in-depth
interviews were conducted with fifty customers of conventional banks. The
findings suggest that conventional banking customers are hesitant to adopt
Islamic banking services in Pakistan owing to their lack of knowledge
about Islamic banks, their liking conventional banks because they consider
current Islamic banking not really Islamic, poor service delivery at Islamic
bank branches, geographical barriers and some social reasons. The social
reasons preventing adoption of Islamic banking services include friends
and familys influence to open a conventional bank account, unacceptability
of Islamic bank account in ones social circle, and employers transferring
salaries in conventional banks. Based on this research, we propose policy
implications to Islamic banks management for capturing the conventional
banks customers in Pakistan and providing better services really in line
with the Islamic principles. Finally, limitations of this study and future
research directions are discussed.
Zainab Yaseen, Sohail Kamran. (2019) Exploring the Impediments Faced by the Banking Customers to Adopt Islamic Banking Services in Pakistan, Journal of Islamic Business and Management, Vol ume 9, Issue 1.
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