THE INFLUENCE OF SHARIA FINANCIAL LITERACY AND SAVING PSYCHOLOGY ON INTEREST IN USING SHARIA BANKING PRODUCTS

Abstract

This study aims to determine the effect of Islamic financial literacy and savings psychology on interest in using Islamic banking products. The background of this study is based on the low level of Islamic financial literacy and the lack of public understanding, particularly among university students, of Islamic banking principles and products. This study used a quantitative methodology. Sampling was conducted using purposive sampling with 96 participants. Data collection was conducted by distributing questionnaires to female students at the Ar-Roudhoh dormitory. Data were then analyzed using descriptive statistics using SPSS version 25 software. Sampling used the Slovin formula with a 5% error rate from a population of 126. Simultaneously, both independent variables significantly influenced interest in using Islamic banking products. The conclusion of this study is that the higher the level of Islamic financial literacy and the more positive a person's savings psychology, the greater the interest in using Islamic banking products. The results of this study are expected to be used as considerations by Islamic financial institutions in improving educational and promotional strategies based on Islamic values