UNDERSTANDINGWHY PEOPLE CHOOSE SHARIA BANK USING CUSTOMERS’ ISLAMIC ETHICAL KNOWLEDGE AND CUSTOMER PERCEPTION

• Main Author: H Tokita, Husna
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22470
• Institution: Institut Teknologi Bandung

Sharia banking in Indonesia is relatively categorized as a new banking industry in Indonesia. The sharia banking industry has been operating around 25 years. If it compares with other Muslim majority countries, sharia banking industry in Indonesia shows stagnant and slow growth. It is found that the minority of sharia banking users are non-Muslim people. It breaks the stereotype that sharia banking can only be used by the Muslim people only. So, for some people, bank selection is not only referring to the profit distribution. This research has purpose to understand the reason behind bank selection in Sharia Banking through understanding Islamic Ethical Knowledge as the basis for financial decision-making and customer perception in Indonesia. Many Sharia Banking study particularly in customer perception has been conducted in many countries and it significantly support the development of the bank in its country. A survey has been conducted using adopted questionnaire. The data from 323 respondents were collected from customers of Sharia Banking in Indonesia. The research framework has been designed and examined and was done by using the regression which the methodology used is showing the significance of each variable. The variable of investment familiarity perception shows no significant effect on the Islamic Ethical Knowledge. On the other hand, Islamic Ethical Knowledge indicates positive relationship (significant) with religiosity perception in Sharia principle and prominence perception of the bank.