Impact of Islamic Financial Literacy, Awareness, Attitude, & Religiosity on Perception of Islamic Banks Customer

Abstract

The paper studies the estimation regarding degree of Islamic financial literacy among individuals of Pakistan & assess their Islamic financial literacy, behavior relating Islamic products, knowledge of products & features of Islamic banking, and religiosity with perception and intention in Islamic banks at Quetta, Pakistan. The questionnaire was surveyed using non-probability sampling technique and total of 312 respondents participated in survey. A preliminary survey was adopted to assess the validity of questionnaire. Structural equation modeling (SEM) analysis has been applied on the data and SmartPLS software was employed. The results showed that the positive relationship b/w factors & provide valuable insights into the ranks of Islamic financial education in Pakistani Islamic banks. This study disclosed that rank of Islamic financial education among individuals in Pakistan is relatively high. A high percentage of participants demonstrated a comprehensive understanding of Islamic financial products & services offered by Islamic banks. Furthermore, there was limited awareness, attitude and religiosity of the specific characteristics and advantages of Islamic banking. The results indicate a need for significant improvement in Islamic financial literacy among individuals in Pakistan. The medium level of familiarity and attitude towards of Islamic products & services highlight the importance of enhancing financial literacy and promoting awareness, attitude, and religiosity in Islamic banking principles. Efforts should be made to provide accessible and comprehensive financial literacy programs that specifically focus on Islamic finance. This will enable individuals to take informed decisions & engage more effectively with Islamic banking services.