The Influence of Sharia Financial Literacy on Financing Decision-Making In Sharia Banks: A Case Study of Customers In Palopo City
DOI:
https://doi.org/10.24256/kharaj.v6i4.6185Abstract
This study aims to analyze the influence of Islamic financial literacy on financing decision-making in Islamic banks, with a focus on customers in Palopo City. The study used a quantitative method with a descriptive and causal approach, and involved 126 respondents who were selected through purposive sampling techniques. The results of the study show that Islamic financial literacy has a significant and positive influence on financing decisions, with a path coefficient value of 0.765. The level of understanding of Islamic financial principles, such as the prohibition of riba, gharar, and maysir, has been proven to affect customer preferences for sharia-based financing products. Respondents who have a higher level of education and middle income show a better level of Islamic financial literacy, so they are better able to make financing decisions in accordance with sharia principles. However, there are still challenges in improving Islamic financial literacy, especially among young respondents and those with lower education. This study suggests the need for a more structured Islamic financial literacy education program, as well as collaboration between Islamic banks, regulators, and educational institutions to increase Islamic financial inclusion in Indonesia.
References
Akhmad Nur Zaroni, Norvadewi Norvadewi, & Risa Mayasari. (2023). The Influence of Student Understanding of the Use of Bank and Non-Bank Sharia Financial Services (Case Study of Bandung Islamic University Students). Brilliant International Journal Of Management And Tourism, 3(1), 163–183. https://doi.org/10.55606/bijmt.v3i1.1286
Alshebami, A. S., & Al Marri, S. H. (2022). The Impact of Financial Literacy on Entrepreneurial Intention: The Mediating Role of Saving Behavior. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.911605
Amanda Simanjuntak, D., Safitri, K., Rani Rahayu, D., Salsabila Nainggolan, N., & Amelia, R. (2023). ISLAMIC LAW PERSPECTIVE ON INVESTMENT. CASHFLOW : CURRENT ADVANCED RESEARCH ON SHARIA FINANCE AND ECONOMIC WORLDWIDE, 2(3), 418–423. https://doi.org/10.55047/cashflow.v2i3.644
Budianto, I. D. (2023). Overview Inklusi Keuangan; Studi Literasi Keuangan Syariah Terhadap Masyarakat. Moderasi : Journal of Islamic Studies, 2(2), 220–233. https://doi.org/10.54471/moderasi.v2i2.34
Di Domenico, S. I., Ryan, R. M., Bradshaw, E. L., & Duineveld, J. J. (2022). Motivations for personal financial management: A Self-Determination Theory perspective. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.977818
Doloh, A., & Redzuan, N. H. (2023). The Role of Financial Behavior, Financial Stress, and Financial Well-Being in Explaining Islamic Financial Literacy among University Students. GATR Journal of Finance and Banking Review, 8(1), 43–57. https://doi.org/10.35609/jfbr.2023.8.1(2)
Harahap, B., Risfandy, T., & Futri, I. N. (2023). Islamic Law, Islamic Finance, and Sustainable Development Goals: A Systematic Literature Review. Sustainability, 15(8), 6626. https://doi.org/10.3390/su15086626
Hoque, M. N., Rahman, M. K., Said, J., Begum, F., & Hossain, M. M. (2022a). What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh? Sustainability, 14(8), 4703. https://doi.org/10.3390/su14084703
Hoque, M. N., Rahman, M. K., Said, J., Begum, F., & Hossain, M. M. (2022b). What Factors Influence Customer Attitudes and Mindsets towards the Use of Services and Products of Islamic Banks in Bangladesh? Sustainability, 14(8), 4703. https://doi.org/10.3390/su14084703
Jaafar, A. Z., & Brightman, M. (2022). From Structure to Purpose: Green and Social Narratives, and the Shifting Morality of Islamic Finance in Kuala Lumpur. Sustainability, 14(9), 5433. https://doi.org/10.3390/su14095433
Katauke, T., Fukuda, S., Khan, M. S. R., & Kadoya, Y. (2023). Financial Literacy and Impulsivity: Evidence from Japan. Sustainability, 15(9), 7267. https://doi.org/10.3390/su15097267
Kutschke, M. J., & Fadale, P. D. (2025). Personal Financial Literacy for the Orthopaedic Trainee and Early Career Surgeon: A Review of the Basics. Journal of the American Academy of Orthopaedic Surgeons, 33(3), 108–116. https://doi.org/10.5435/JAAOS-D-23-01260
Ling, X., Wang, L., Pan, Y., & Feng, Y. (2023). The Impact of Financial Literacy on Household Health Investment: Empirical Evidence from China. International Journal of Environmental Research and Public Health, 20(3), 2229. https://doi.org/10.3390/ijerph20032229
Luo, Z., Azam, S. M. F., & Wang, L. (2023). Impact of financial literacy on household stock profit level in China. PLOS ONE, 18(12), e0296100. https://doi.org/10.1371/journal.pone.0296100
Muhammad Raihan Aulia Firdausi, & Rahmatina Awaliah Kasri. (2022). Islamic Financial Literacy Amongst Muslim Students in Indonesia: A Multidimensional Approach. AL-MUZARA’AH, 77–94. https://doi.org/10.29244/jam.specialissue2022.77-94
Mujiatun, S., Trianto, B., Cahyono, E. F., & Rahmayati. (2023). The Impact of Marketing Communication and Islamic Financial Literacy on Islamic Financial Inclusion and MSMEs Performance: Evidence from Halal Tourism in Indonesia. Sustainability, 15(13), 9868. https://doi.org/10.3390/su15139868
Roemanasari, F., Sabela, J., & Rusgianto, S. (2022). Islamic Financial Literacy and Financial Behavior on Investment Intention. Jurnal Ilmu Ekonomi Terapan, 7(2), 239–250. https://doi.org/10.20473/jiet.v7i2.40679
Sabastio, A. A. (2024). The Effect of Student Sharia Financial Literacy on Student Financial Behavior (Case Study of Islamic Economics Students. Jurnal Ilmu Manajemen & Ekonomika, 16(2), 69–86. https://doi.org/10.35384/jime.v16i2.268
Satyakti, Y. (2023). The Effect of Applying Sustainability (Maqasid Shariah) and Competition on Islamic Bank Financing. Sustainability, 15(17), 12994. https://doi.org/10.3390/su151712994
Seraj, A. H. A., Alzain, E., & Alshebami, A. S. (2022). The roles of financial literacy and overconfidence in investment decisions in Saudi Arabia. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.1005075
Setiawan, R. A. (2023). Avoidance of Riba-Based Loans and Enhancement of Quality of Life: An Indonesian Context Analysis. Religions, 14(11), 1376. https://doi.org/10.3390/rel14111376
Syah, D., & Rahmadani, G. (2024). The Profit-Sharing System in Financing Islamic Banking. Qubahan Academic Journal, 4(1), 300–309. https://doi.org/10.48161/qaj.v4n1a198
Xie, Z., Liu, X., Najam, H., Fu, Q., Abbas, J., Comite, U., Cismas, L. M., & Miculescu, A. (2022). Achieving Financial Sustainability through Revenue Diversification: A Green Pathway for Financial Institutions in Asia. Sustainability, 14(6), 3512. https://doi.org/10.3390/su14063512
Zaimovic, A., Torlakovic, A., Arnaut-Berilo, A., Zaimovic, T., Dedovic, L., & Nuhic Meskovic, M. (2023a). Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends. Sustainability, 15(12), 9358. https://doi.org/10.3390/su15129358
Zaimovic, A., Torlakovic, A., Arnaut-Berilo, A., Zaimovic, T., Dedovic, L., & Nuhic Meskovic, M. (2023b). Mapping Financial Literacy: A Systematic Literature Review of Determinants and Recent Trends. Sustainability, 15(12), 9358. https://doi.org/10.3390/su15129358
Mujahidin, Rahmadani, N., & Putri, Q. A. R. (2024). Analysis of the Influence of Religiosity Values In Reducing Consumptive Behavior in Indonesian Muslim Consumers. Amwaluna: Jurnal Ekonomi dan Keuangan Syariah, 8(2), 253-274.
Wulandari, S., Irfan, A., Zakaria, N. B., & Mujahidin. (2024). Survey Study on Fraud Prevention Disclosure Measurement at State Islamic Universities in Indonesia. IQTISHODUNA: Jurnal Ekonomi Islam, 13(1), 327–348. https://doi.org/10.54471/iqtishoduna.v13i1.2305
Sapsuha, M. U., Alwi, Z., Sakka, A. R., & Al-Ayyubi, M. S. (2024). Review of Gold Trading Practices on Credit (non-Cash) Based on Hadith. Al-Kharaj: Journal of Islamic Economic and Business, 6(3).
Majid, N. H. A., Omar, A. M., & Busry, L. H., Mujahidin Reviving Waqf In Higher Education Institutions: A Comparative Review Of Selected Countries. European Proceedings of Social and Behavioural Sciences.
Ishak, I., Putri, Q. A. R., & Sarijuddin, P. (2024). Halal Product Assurance at Traditional Markets in Luwu Raya Based on Halal Supply Chain Traceability. Amwaluna: Jurnal Ekonomi dan Keuangan Syariah, 8(2), 224-240.
K, A. ., Astuti, A. R. T. ., & ., Mujahidin. (2024). The Impact of Word of Mouth and Customer Satisfaction on Purchase Decisions: The Role of Maslahah as an Intervening Variable in the Cosmetic Products Industry in Indonesia. Journal of Ecohumanism, 3(7), 1525–1540. https://doi.org/10.62754/joe.v3i7.4307
Arno, A., & Mujahidin, M. (2024). Enhancing Zakat Management: The Role of Monitoring and Evaluation in the Amil Zakat Agency. Jurnal Economia, 20(3), 397-418. doi:https://doi.org/10.21831/economia.v20i3.53521
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2025 Hatima
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. In line with the license, authors are allowed to share and adapt the material. In addition, the material must be given appropriate credit, provided with a link to the license, and indicated if changes were made. If authors remix, transform or build upon the material, authors must distribute their contributions under the same license as the original.
