Determinants of customers’ intention to use Islamic financing services

Abstract

Sri Lanka is one of the few non-Islamic countries to have legislated for Islamic banking. Islamic banking and finance is a emerging industry in sri lanka where there is a fully fledge islamic bank and other conventional banks operating islamic windows providing services to wide range of customers. This study is designed to examine the effects of the following factors: attitude; social influence; religious obligation; and pricing of Islamic financing, on the intention to use Islamic financing. Data were collected through questionnaire and used SPSS 16.0 to analyze the data using regression analysis. The study found two determinants to be significant in influencing the intention to use Islamic financing, namely, consumer attitude and religious obligation. Social influence and pricing of Islamic financing were found to be insignificant.