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SMEs play the role of backbone of the economic and business activities. Growth and development of SMEs is also dependent to a major extent on the availability of suitable banking products in line with their specific needs and wants. Therefore, 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. A conceptual framework has been discussed in present study to understand financial behavior of SMEs. Moreover, to identify the determinants of SMEs owner-managers behavioral intention which influence their financial decisions towards adoption of Islamic/conventional banking products in Pakistan. Further suggested that researchers can examine the influence of these factors on financial behavior of SMEs as well as to find out owner/managers preferences to choose banking Islamic/conventional products.