Bangladesh University of Professionals (BUP)
Research concept note
Course Name: ECON 4806: Individual Research Work
Course Code: ECON 4806
Supervisor:
Associate Professor
Dr. Md. Shariful Islam
Department of Economics
Faculty of Arts and Social Sciences
Bangladesh University of Professionals
Submitted By:
Md. Mahamudul Hasan
ID: 2114881134
Department of Economics
Faculty of Arts and Social Sciences
Bangladesh University of Professionals
Date: 21 Sept, 2025
Concept Note
Tentative Title:
1. Determinants of Household Adoption of Islamic Banking Channels for Remittance Inflows: Evidence from
Cumilla District
2. Behavioral Intention Toward Using Islamic Banks for Remittance Receipts: A Case Study of Cumilla District
Motivation for Choosing the Topic
Bangladesh is among the world’s top ten remittance-receiving countries, and remittances play a vital role in
sustaining household consumption, investment, and national foreign exchange reserves. According to World
Bank data, Bangladesh received approximately USD 27.1 billion in remittances in 2023. Within this national
framework, Cumilla district stands out as a leading contributor. In July of FY 2024–25 alone, Cumilla received
USD 101.7 million in remittances, which constituted nearly 19 percent of the national inflow for that month.
Islamic banking has become increasingly significant in channeling these flows. Islami Bank Bangladesh PLC,
for example, received around USD 455.40 million in remittances in FY 2024–25, accounting for nearly 23
percent of the national share. This makes Islamic banks not only key financial institutions in handling
remittance inflows but also vital actors in shaping household financial choices.
Given the strong religious sentiment in Bangladesh, combined with the rapid expansion of digital financial
services, understanding household behavioral intentions toward Islamic banking channels is timely and
necessary. In particular, this research focuses on Cumilla, where remittances have a disproportionately high
impact on household economic well-being, to study why and how households choose Islamic banking channels
for receiving remittances.
Proposed Objectives and Research Questions
This study is designed around the following objectives and guiding research questions:
Objective 1: To identify the behavioral, religious, and financial factors influencing households’ choice of Islami
banking channels for remittance receipts.
Objective 2: To analyze the role of behavioral attitudes, subjective norms, and financial incentives in shaping
adoption of Islamic banking channels.
Objective 3: To evaluate the impact of digital knowledge, trust, and service quality on households’ adoption of
Islamic banking channels.
Possible Data Sources and Methodology
The study will primarily depend on primary survey data collected from remittance-receiving households in
Cumilla district. Respondents will be selected through a stratified random sampling method to ensure
representation across urban and rural areas, income groups, and banking channel preferences.
The analytical framework will apply Structural Equation Modeling (SEM), which is particularly suited for
exploring behavioral intention models. SEM enables the analysis of direct and indirect relationships between
observed and latent variables. Attributes included in the model will cover:
● Behavioral Attitude
● Subjective Norms
● Financial Incentive
● Digital Knowledge
● Perceived Trust
● Service Quality
● Religious Motivation
● Perceived Ease of Use (digital platforms)
● Perceived Risk
Data will be collected using structured questionnaires based on Likert-scale measurements. Structural
Equation Modeling (SEM) analysis will be conducted using software such as AMOS or SmartPLS to test the
hypothesized relationships and model fit.
Expected Contribution
This research is expected to generate valuable insights into household-level behavioral intentions regarding
Islamic banking adoption for remittance transactions. It will contribute to the literature on remittance
management, financial inclusion, and behavioral economics in the context of developing economies.
Moreover, findings will provide practical implications for policymakers, regulators, and financial institutions in
designing targeted interventions to strengthen Islamic banking channels, improve digital literacy, and enhance
trust in formal financial systems.
