Islamic Banking and Financial Inclusion in Ghana: Evidence From a Demand-Side Perception Study

Financial exclusion remains a persistent challenge in many developing economies, including Ghana, where substantial segments of the population still lack access to formal financial services. This study examines the potential role of Islamic banking in enhancing financial inclusion in Ghana. It is motivated by the premise that Islamic finance, grounded in principles of equity, transparency, and risk sharing, can provide an ethical, interest-free alternative for individuals currently excluded from conventional banking. Using a descriptive survey of 200 respondents drawn from key Muslim communities, the study assesses public awareness and perceptions of Islamic banking, explores how its underlying principles may align with the needs of financially excluded groups, identifies perceived barriers to its adoption, and investigates strategies for integrating Islamic banking into Ghana's financial architecture. The findings indicate a relatively high level of conceptual awareness and very strong receptivity. A total of 87.5% of respondents reported awareness of Islamic banking concepts, and 98.5% expressed willingness to open an account with an Islamic bank. At the same time, respondents identified significant constraints. A large majority, 97.5%, viewed lack of public awareness as a major barrier, and 92% pointed to the absence, until very recently, of a supportive regulatory framework. Respondents also widely agreed that Islamic banking could attract unbanked populations, expand access to savings and credit in rural areas, and strengthen trust in financial services through its ethical orientation. Overall, the findings indicate a strong stated willingness among the sampled respondents to consider non-interest banking products, alongside clear informational and governance-related barriers that could weaken adoption if left unaddressed. The paper interprets these results as baseline demand-side evidence relevant to policy design and stakeholder communication, while explicitly avoiding national-level inference given the study's non-probability sampling design. Considering recent steps by the Bank of Ghana towards a non-interest banking framework, the study offers timely empirical evidence and policy-relevant insights for regulators, financial institutions, and other stakeholders engaged in the development of Islamic finance in Ghana.