The Influence of Religiosity and Islamic Financial Literacy on the Intention to Invest in Islamic Banks

Abstract

This study is motivated by the persistently low level of public interest in investing in Islamic banks, despite the continued growth of the Islamic banking industry. This study aims to analyze the influence of religiosity and Islamic financial literacy on public interest in investing in Islamic banks. A quantitative approach was employed, utilizing purposive sampling to select 90 respondents. Primary data were collected through questionnaires and analyzed using validity tests, reliability tests, classical assumption tests, multiple linear regression analysis, F-tests, t-tests, and the coefficient of determination (Adjusted R-Square) with the aid of SPSS software. The results indicate that religiosity and Islamic financial literacy simultaneously exert a significant influence on the interest in investing in Islamic banks. Individually, religiosity has a significant negative effect on investment interest, whereas Islamic financial literacy has a significant positive effect. The Adjusted R-square value of 0.813 indicates that 81.3% of the variation in investment interest can be explained by the variables of religiosity and Islamic financial literacy, while the remaining 18.7% is influenced by factors outside the research model. Thus, it can be concluded that enhancing Islamic financial literacy can boost public interest in Islamic bank investments; conversely, high religiosity does not necessarily translate into increased investment interest unless accompanied by an adequate understanding of Islamic investment products and mechanisms.