SMEs Behavioral Intention towards Usage of Financial Products: A Comparative Study of Islamic and Conventional Banks in Pakistan

Purpose:  This study has emphasized that understanding SMEs’ financial behavior towards Islamic/conventional banking products is prerequisite for policy makers and managers of banking and non-banking financial institutions. Design/Methodology/Approach:  A conceptual framework has been discussed in present study to understand financial behavior of SMEs towards adoption of conventional or Islamic financial products. Moreover, to identify the determinants of SMEs owner-managers behavioral intention which influence their financial decisions towards adoption of Islamic/conventional banking products. Findings: Prior research highlighted that for growth and development of SME sector it’s vital to fulfill their financial needs. In Islamic countries like Pakistan a large population of SME owner-managers interested towards Islamic financial products, however, current study has presented a conceptual framework and after examining these determinants study will explore which factors influencing SMEs intention to adopt Islamic/conventional financial products.   Implications/Originality/Value:  The study will help the global and Pakistan banking industry (both Islamic and conventional) to look into the areas which are ignored and need attention, which is necessary for the growth of both sector of banking industry as well as for the growth of SMEs.