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The Influence of Islamic Financial Literacy and Social Environment on Saving Intentions in Islamic Banking: A Case Study of Economics and Business Students at Universitas Sumatera Utara
Corresponding Author(s) : Wahyu Sugeng Imam Soeparno
American Journal of Economics and Business Management,
Vol. 7 No. 8 (2024): August
Abstract
This study examines the influence of Islamic financial literacy and social environment on students' interest in saving at Islamic banks in Indonesia. A quantitative survey of 100 students at Universitas Sumatera Utara, analyzed using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS), reveals that both Islamic financial literacy and social factors, including religiosity, peer influence, and societal norms, significantly impact saving behavior, with social factors having a stronger effect. The research highlights challenges in improving students' Islamic financial knowledge and advocates for targeted educational programs. It suggests that aligning Islamic banking services with students' social and religious values can enhance saving intentions. The findings contribute to understanding how education and social environments shape financial behavior in the Islamic banking sector and propose strategies to enhance financial literacy for inclusive growth.
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- A. Abdullah, M. Z. M. Salleh, M. N. Zakaria, N. M. Din, M. I. Aziz, and M. Z. Muhammad, "Achieving Islamic financial literacy in Malaysia: Issues and challenges," in Proc. Int. Conf. Bus. Technol., Cham, Switzerland: Springer Int. Publishing, 2021, pp. 889-896. doi: 10.1007/978-3-031-08084-5_64.
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- Sukamto, "The influence of Islamic financial literacy and social environment of KJKS Arjuna on saving interest of female students at Ngalah Pesantren Pasuruan," J. Mu’allim, vol. 6, no. 1, pp. 1-17, 2024. doi: 10.35891/muallim.v6i1.4495.
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- A. Zulfaka and S. Kassim, "Roles of Islamic financial literacy on financial decision-making: Building a conceptual framework based on the Theory of Planned Behavior and Social Cognitive Theory," in Islamic Sustainable Finance, Law and Innovation: Opportunities and Challenges, Cham, Switzerland: Springer Nature Switzerland, 2023, pp. 255-266. doi: 10.1007/978-3-031-27860-0_23.
References
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M. A. Al-Awlaqi and A. M. Aamer, "Islamic financial literacy and Islamic banks selection: An exploratory study using multiple correspondence analysis on banks' small business customers," Int. J. Emerging Markets, vol. 18, no. 12, pp. 6285-6299, 2022. doi: 10.1108/IJOEM-09-2021-1354.
N. Angraini, "The influence of Islamic financial literacy, religiosity, and service quality on the decision to save at Islamic banks with trust as an intervening variable in Jambi Province," AJPBS, vol. 5, no. 1, 2024. doi: 10.61688/ajpbs.v5i1.307.
V. Aunika, "Religiosity, knowledge, and satisfaction on students' saving decisions: A moderating effect of interest in Islamic banks," J. Ilmu Perbankan Dan Keuangan Syariah, vol. 6, no. 1, pp. 101-126, 2024. doi: 10.24239/jipsya.v6i1.256.101-126.
M. Dewi and I. Ferdian, "Enhancing Islamic financial literacy through community-based workshops: A transtheoretical model," J. Islamic Accounting Bus. Res., vol. 12, no. 5, pp. 729-747, 2021. doi: 10.1108/jiabr-08-2020-0261.
S. Din, S. Mehmood, A. Shahzad, I. Ahmad, A. Davidyants, and A. Abu-Rumman, "The impact of behavioral biases on herding behavior of investors in Islamic financial products," Front. Psychol., vol. 11, 2021. doi: 10.3389/fpsyg.2020.600570.
A. Haruna, "What determines the adoption of Islamic finance products in a non-Islamic country? Empirical evidence from Cameroonian small- and medium-sized enterprises," J. Islamic Marketing, vol. 15, no. 5, pp. 1253-1279, 2024. doi: 10.1108/jima-08-2023-0234.
A. Haryanto and F. Wulandari, "Social influence, religiosity, and salesperson service on saving intention in Islamic banks: The mediating role of perceived ease of use of technology," Shirkah J. Econ. Bus., vol. 7, no. 2, 2022. doi: 10.22515/shirkah.v7i2.506.
S. Irdiana, "Studying generation Z's saving interest: Sharia financial literacy, religiosity, and lifestyle," J. Ilmiah Global Education, vol. 5, no. 2, pp. 1827-1832, 2024. doi: 10.55681/jige.v5i2.2801.
N. Izza, "Pros and cons of riba interest," Islamic Economics Methodology, vol. 2, no. 2, 2024. doi: 10.58968/iem.v2i2.355.
Kardoyo, A. Nurkhin, M. Muhsin, M. Mukhibad, and F. D. Aprilia, "The effect of knowledge, promotion, and religiosity on intention to use Islamic banking services," Int. J. Financial Res., vol. 11, no. 2, pp. 128-135, 2020. doi: 10.5430/ijfr.v11n2p128.
M. Kevser and M. Doğan, "Islamic financial literacy and its determinants: A field study on Turkey," J. Transition Stud. Rev., vol. 28, no. 1, pp. 91-120, 2021. doi: 10.14665/1614-4007-28-1-008.
N. Khofifah, "The effect of religiosity and disposable income on interest in saving: Purwakarta community in Islamic banks," Suhuf, vol. 35, no. 2, pp. 1-10, 2023. doi: 10.23917/suhuf.v35i2.23030.
Y. Layn, "Factors affecting students' interest in saving at Islamic banks: An empirical study on economics and business students at Pattimura University," J. Lentera Akuntansi, vol. 8, no. 1, p. 131, 2023. doi: 10.34127/jrakt.v8i1.825.
A. Lovika, B. Burhanuddin, S. Santoso, and I. Praktikno, "The role of Islamic financial literacy in enhancing the added value of halal food and beverage entrepreneurs," J. Pendidikan Dan Kewirausahaan, vol. 10, no. 2, pp. 655-667, 2022. doi: 10.47668/pkwu.v10i2.474.
A. Musa, B. Khalidin, H. Furqani, A. Ibrahim, and N. IS, "Exploring determinants of saving and financing aspects in Islamic banks: An insight from Indonesia," Asian Econ. Financial Rev., vol. 12, no. 8, pp. 604-626, 2022. doi: 10.55493/5002.v12i8.4565.
P. Nugraheni and F. N. Widyani, "A study of intention to save in Islamic banks: The perspective of Muslim students," J. Islamic Marketing, vol. 12, no. 8, pp. 1446-1460, 2021. doi: 10.1108/JIMA-11-2019-0233.
P. Nuraini, "The influence of people's knowledge on their interest in saving in Islamic banks," Int. J. Academic Res. Bus. Social Sci., vol. 13, no. 10, 2023. doi: 10.6007/ijarbss/v13-i10/19020.
R. Nurrohmah and R. Purbayati, "The effect of Islamic financial literacy and community trust on interest in saving at Islamic banks," J. Maps (Manajemen Perbankan Syariah), vol. 3, no. 2, pp. 140-153, 2020. doi: 10.32627/maps.v3i2.135.
A. Nursari, A. Atahau, and I. Sakti, "Do the saving interest in Islamic banks affect financial literacy and religiosity?," J. Penelitian, vol. 19, no. 1, pp. 35-45, 2022. doi: 10.26905/jp.v19i1.8286.
P. Puji and L. Hakim, "The role of gender as a moderating variable in Sharia banking education, Islamic financial literacy, religiosity, Islamic financial inclusion on saving interest at Islamic banks," J. Pendidikan Akuntansi (Jpak), vol. 9, no. 1, pp. 1-12, 2021. doi: 10.26740/jpak.v9n1.p1-12.
S. Purnomo, H. Cahyo, and S. Mukharomah, "An analysis of factors affecting saving interest at Islamic banks: A case study of Banyumas Regency," J-Mas (J. Manajemen Dan Sains), vol. 6, no. 2, p. 343, 2021. doi: 10.33087/jmas.v6i2.273.
M. Risgin, "Interest of student FEBI IAIN Fattahul Muluk Papua in saving at Islamic banks," J. Ekonomi Syariah Akuntansi Dan Perbankan (Jeskape), vol. 7, no. 2, pp. 226-244, 2023. doi: 10.52490/jeskape.v7i2.2542.
A. Rozikin and I. Sholekhah, "Islamic financial literacy, promotion, and brand image towards saving intention in Sharia banks," Iqtishadia J. Kajian Ekonomi Dan Bisnis Islam, vol. 13, no. 1, p. 95, 2020. doi: 10.21043/iqtishadia.v13i1.6489.
H. Sudarsono, "Determinants of consumer decisions to adopt Islamic banking services in Indonesia," Amwaluna J. Ekonomi Dan Keuangan Syariah, vol. 7, no. 1, pp. 144-161, 2023. doi: 10.29313/amwaluna.v7i1.8214.
Sukamto, "The influence of Islamic financial literacy and social environment of KJKS Arjuna on saving interest of female students at Ngalah Pesantren Pasuruan," J. Mu’allim, vol. 6, no. 1, pp. 1-17, 2024. doi: 10.35891/muallim.v6i1.4495.
F. Yeni, S. R. Mulyani, and S. Susriyanti, "Islamic financial literacy, spiritual intelligence, public perception and behavior on public interest in Islamic banking services," Cogent Econ. Finance, vol. 11, no. 1, 2023. doi: 10.1080/23322039.2023.2175470.
A. Zulfaka and S. Kassim, "Roles of Islamic financial literacy on financial decision-making: Building a conceptual framework based on the Theory of Planned Behavior and Social Cognitive Theory," in Islamic Sustainable Finance, Law and Innovation: Opportunities and Challenges, Cham, Switzerland: Springer Nature Switzerland, 2023, pp. 255-266. doi: 10.1007/978-3-031-27860-0_23.