Master of Science in Islamic Banking & Finance
Department of Finance
School of Business Studies (SBS)
Date of Submission
Dr. Irum Saba, Associate Professor & Program Director MS-IBF, Institute of Business Administration, Karachi
Dr. Fawad Ahmed, Assistant Professor, Department of Finance, Institute of Business Administration, Karachi
Purpose: The objective of this paper is to check the moderating effect of Islamic Financial Literacy on the relationship between Attitude, Subjective norm, Perceived behavior control, Religiosity, and Intention to use Islamic Banking. This paper will investigate that how the relationship between Attitude, Subjective norm, Perceived behavior control, Religiosity and Behavioral intention is affected when Islamic financial literacy is added with Intention as moderating variable.
Design / Methodology / Approach: To check this, a simple questionnaire was developed which was adopted from previous research. Data was collected from 209 respondents via google forms. Confirmatory factor analysis was performed to check the reliability of the factors and overall model. Whereas Regression analysis was performed to check the relationship between variables which were computed after factor analysis.
Findings: As per results, Attitude, Perceived behavior control, Religiosity positively affected Intention to use Islamic Banking. Whereas the effect of Subjective norm was found to be insignificant as per regression results which was also consistent with previous research. Also, Moderation effect of Islamic financial literacy was found to be significant as regression results depicted that, Attitude, Subjective norm, Perceived behavior control and Religiosity positively affected our moderating variable. Which means that effect of Attitude, Subjective norm, Perceived behavior control and Religiosity is positively enhanced when Islamic financial literacy is added with Intention.
Practical Implications: Islamic banking professionals as well as academicians may benefit from findings of this study. Islamic banking professionals should design policies and procedures that help in enhancing Islamic financial knowledge of general public. Also, more academic programs and degrees should be designed to educate the masses which will also contribute toward Islamic financial literacy.
Originality / Value: According to author this paper is original and unique as previous papers have investigated the moderating effect of religiosity on theory of planned behavior and another research investigated the moderating effect of attitude on theory of planned behavior, but no research paper is found to have investigated the moderating effect of Islamic financial literacy on theory of planned behavior and particularly in Pakistan. Therefore, this research has a lot of scope for enhancement.
Akhtar, H. (2023). Determinants of use of Islamic Banking a moderating effect of Islamic Financial Literacy, view from Pakistan (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/etd-ms-ibf/31
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