Factors influencing interest in saving at Islamic bank: A study on the merchants of Pasar Besar in Malang City

Rahmawati, Laila and Rahayu, Yayuk Sri ORCID: https://orcid.org/0000-0001-6315-7943 (2024) Factors influencing interest in saving at Islamic bank: A study on the merchants of Pasar Besar in Malang City. Journal of Islamic Economics Lariba, 10 (1). pp. 287-306. ISSN 2528-3758

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Abstract

Introduction
The development of Islamic banks in Indonesia is pivotal for the growth of the Islamic economy, given the country's majority Muslim population. However, the adoption rate of Islamic banking services remains relatively low compared to the overall Muslim population, highlighting the need to understand the factors influencing customer interest in saving with Islamic banks.
Objectives
This study aims to examine the impact of Sharia labels, product knowledge, and location on the interest in saving among merchants in Pasar Besar, Malang. Specifically, it seeks to determine how these factors individually and collectively influence customers' decisions to save in Islamic banks.
Method
A quantitative research approach was employed, utilizing non-probability purposive sampling to gather data from 135 respondents through questionnaires. The analysis was conducted using IBM SPSS to perform validity, reliability, normality, heteroscedasticity, multicollinearity, and multiple linear regression tests to validate the hypotheses.
Results
The findings indicate that Sharia labels, product knowledge, and location significantly affect the interest in saving. Specifically, the t-test results show that each variable has a statistically significant impact, with t-values greater than the t-table value of 1.978. Additionally, the F-test confirms that these variables collectively influence the interest in saving, with an F-value of 50.579 exceeding the threshold of 2.67.
Implications
The study's implications for further research suggest exploring additional factors such as customer service quality and financial incentives, and employing mixed-method approaches to gain deeper insights. For policymakers and Islamic banks, the findings highlight the importance of enhancing Sharia compliance visibility, improving customer education on Islamic banking products, and strategically locating bank branches to attract more customers

Item Type:	Journal Article
Keywords:	Islamic bank; location; merchants; product knowledge; saving intention; Sharia label
Subjects:	15 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 1505 Marketing
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Yayuk Sri Rahayu
Date Deposited:	14 Oct 2024 11:18

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