FACTORS INFLUENCING INTENTION TO USE ISLAMIC BANKING IN BANDUNG WEST JAVA

• Main Author: Rasyida Putri Setiawan, Raisa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72887
• Institution: Institut Teknologi Bandung

Muslim as one of the largest religions in Indonesia with 87.2% of the citizens adhering to it in 2023, that became the urge of Indonesia to have a banking system that fundamentally implemented the sharia principle. Bank Muamalat in 1992 is the first steppingstone of Islamic banking in Indonesia, which already marks 30 years of emergence of the Islamic bank industry in Indonesia. However, the growth of market share value of Islamic banking in Indonesia is only 6.41%, whereas Islamic banking is expected to grow up to 10% to 20%. The gap between the expected market share value of Islamic banking with the current market share value, becomes the fundamental to analyze the factors that influence the intention to use Islamic banking, to known the relationship and impact between the factors to the intention, and knows the different factors that influenced the different demographic area includes gender, age, and user and non-user of Islamic banking, by using Theory of Planned Behavior as the fundamental of the research model. This research conducted by quantitative approach using online survey questionnaires addressed to the Bandung, West Java citizens in age 17-65 years old, the result analyzed using descriptive statistics and PLS-SEM with SmartPLS 4.0 as the tools. That resulted in the level of Islamic financial literacy in Bandung, West Java citizens being categorized as moderate literate, and showed the significant relationship between Islamic financial literacy, perceived usefulness, subjective norms, perceived behavioral control, and attitude towards the Intention to use Islamic banking, that also mediated by attitude. With subjective norms became the factors that highly influenced female, young age, and user also non-user of Islamic banking. This research provides some references that could be applied by Islamic banking industry in Indonesia to increase the number of market share values, however future research can enlarge the sample of area and use different variables to analyze the factors of intention to gain more references for Islamic banking industry in Indonesia.