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The study aims to assess Islamic financial literacy among the residents of Lahore and to investigate how it influences adoption of Islamic banking services. A survey research design is used; the sample size for the study was 300, which included 230 males and 70 females. Purposive and convenience sampling techniques were used for sample selection. A survey questionnaire designed through a systematic assessment of the literature and identification of important concepts in relevance to Islamic banking was used for data collection. Analysis was done on SSPS and AMOS using structural equation modeling and other related interventions. The results show that majority of the participants have concerns about the legitimacy of Islamic banking services, the customer quality, quality of services and products, legitimacy of the Islamic banking system as operated, and the related factors. Further, it was found that the level of educational attainment among the masses, customer services, service quality, and legitimacy of Islamic banking influence the rate of adoption of Islamic banking services. The State Bank of Pakistan and other regulatory bodies should promote Islamic financial literacy and Islamic banking products’ awareness among customers to increase adoption of Islamic banking services.

Zunaira Zaman, Bilal Mehmood, Rashid Aftab, Muhammad Shahid Siddique, Yasir Ameen. (2017) Role of Islamic Financial Literacy in the Adoption of Islamic Banking Services: An Empirical Evidence from Lahore, Pakistan, Journal of Islamic Business and Management, Volume 7, Issue 2.
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