Beyond access: Islamic financial literacy and women’s empowerment

PurposeRecently, financial inclusion promoters have observed that financial literacy is a vital tool for financial inclusion growth, especially among the poor who are considered financially illiterate. The purpose of this paper is to look at the role of Islamic financial literacy (IFL) and inclusion in improving the performance of micro, small and medium enterprises (MSMEs) in Indonesia.Design/methodology/approachThis study uses questionnaire data collected as many as 197 MSMEs. This study was analyzed using structural equation modeling approach to test the hypothesis.FindingsThe results show that IFL is an important variable to increase Islamic financial inclusion. The results also show that both have a significant influence in developing the MSME sector business.Research limitations/implicationsThis research is not without limitations. This study only adopted a sample in one Province in Indonesia with focus on creative economy sector and some others sectors located in the province of Riau, therefore ignoring suburban and urban areas in Indonesia. Therefore, future studies using a cross-sectional research design are feasible. In addition, this study only uses quantitative data, so that qualitative research with key informant interviews can be considered for further research.Practical implicationsThe findings of this study enlighten policymakers, managers of financial institutions and advocates of financial literacy and inclusion about the importance of improving the performance of MSMEs. As a policy recommendation, this study suggests that Islamic policy makers and financial institutions should play a proactive role in increasing service outreach and providing the regulatory environment needed for MSMEs given the important role MSMEs play in the Indonesian economy.Originality/valueThis study combines functional components (behaviors and attitudes) and nonfunctional measures (knowledge and skills) of financial literacy and financial inclusion in explaining the performance of MSMEs. Thus, this research is an initial effort to explain financial literacy and inclusion on the performance of MSMEs.

Purpose - This paper aims to evaluate the existing Islamic financial and business literacy for people with disabilities and propose a job and business recommendation to address different characteristics of the communities. Methodology - Using the ethnography approach, this research focuses on people with disabilities in their diverse backgrounds of social, economic, and cultural settings. It includes participant observations and interviews accompanied by their family members or social care providers. Findings - The finding shows that the existing Islamic financial and business literacy for people with disabilities is still limited due to social gaps. There are tensions that exist in the dedifferentiation method whether they remain to be hopeless to earn more literacy and do their business independently. It is understood that the dedifferentiation has underestimated the people's experience in Islamic financial and business literacy with their types of disabilities. Practical Implication - The contribution of this paper is to propose a policy recommendation regarding professional support to ensure sustainable benefits from Islamic financial literacy, Islamic business, and job seeking that may improve the well-being of the communities. Originality - This paper details the only institution that has implemented an Islamic approach to financial literacy, business, and job seeking for people with disabilities through 25 events. These events included 12 on Islamic financial literacy, eight on Islamic business, and eight on job seeking, totaling 95 hours (89 hours offline and six hours online). The initiative successfully accommodated 4,540 participants from all provinces in Indonesia (3,410 offline and 1,130 online). Keywords: Literacy, Islamic Finance, Islamic Business, People with Disabilities, Ethnography

This study aims to determine the index of Islamic financial literacy and inclusion in Islamic boarding schools with a case study at RMI NU DKI Jakarta and analyze the effect of Islamic financial literacy and inclusion on welfare proxied by Maqashid Sharia. Primary data analyzed with descriptive statistics to measure the Islamic financial literacy and inclusion index; and SEM-PLS to analyze the effect of Islamic financial literacy and inclusion on welfare proxied by Maqashid Sharia. The results showed that 34% of respondents had Islamic financial literacy and inclusion index well-literate, 57% in sufficient literate, and 9% in less literate. Islamic financial literacy has a significant positive effect on welfare proxied by Maqashid Sharia. Meanwhile, Islamic financial inclusion has a positive but insignificant effect. The government and Islamic financial institutions must increase the socialization of Islamic financial literacy in Islamic boarding schools and increase access to finance by adequate supporting infrastructure.

West Java has a higher Sharia financial inclusion index than the national financial inclusion index, but this is not followed by the Islamic literacy index. This study aims to measure the increase in Islamic financial literacy and inclusion in the Islamic cooperative sector (BMT/KSPPS) before and after mentoring and counseling programs related to Islamic financial inclusion and literacy in West Java communities. The method used in this study is the Community-Based Participatory Research (CBPR) Method. The type of data used is primary data, which is obtained from the results of questionnaires and interviews in the field. The objects of service are categorized into two, namely mentoring programs for administrators and members of the BMT Al Muhsinin KSPPS, and community extension programs, and members of the ta'lim council in the BMT Al Muhsinin area. The data analysis technique uses a paired sample t-test difference test, with pre and post-test data related to Islamic financial literacy and inclusion. The results showed that there were significant differences before and after the mentoring and counseling. The four clusters carried out by mentoring and counseling began to understand more deeply important aspects of Islamic cooperatives such as the role of the Islamic supervisory board, the sales and purchase contracts used, daily practices, and profit-sharing ratios. With enhanced understanding, cooperative members and the general public have better access to Islamic financial services, which in turn can improve their economic well-being and support local economic development.

The growth of the Islamic economy in Indonesia is currently so rapid, the benchmark is financial literacy and inclusion in accordance with the provisions and principles of sharia. It plays an important role in improving the quality of personal and public financial management, especially among Generation Z in the city of Depok. This research aims to determine the effect of Islamic financial literacy and inclusion on Islamic financial management in Generation Z in Depok city. This research method uses a quantitative approach with information collection methods obtained from 100 respondents through distributing questionnaires. The results of this study show that Islamic financial literacy does not have a positive effect on Islamic financial management variables with a significance value of 0, 331> 0, 05. Islamic financial inclusion has a positive influence on Islamic financial management with a significance value of 0, 049 < 0, 05. The simultaneous test results show that Islamic financial literacy and inclusion each have an influence on financial management in generation Z of Depok city, the significance value is 0, 000 < 0, 05. This study provides an understanding of Islamic financial literacy and inclusion in the application of Islamic financial management more wisely and ethically among the younger generation in order to achieve financial and spiritual well-being.

Introduction: Financial inclusion is the availability of public access to financial services products that suit their needs. Islamic financial literacy and financial technology are factors that can affect the level of financial inclusion. If Islamic financial literacy and financial technology increase, Islamic financial inclusion will also increase. However, in reality, the results of interviews with several people in Babadan District, Ponorogo Regency, show that increasing Islamic financial inclusion is not accompanied by good Islamic financial literacy and financial technology. The purpose of this study is to analyze the influence of Islamic financial literacy and financial technology on Islamic financial inclusion. This study uses a quantitative research approach. The sampling technique in this study is probability sampling. Sampling in this study, using the Slovin formula, a sample of 100 respondents was obtained. The results of the study show that Islamic financial literacy has no effect on Islamic financial inclusion. This is evidenced by the results of the t-test. Financial technology has a significant positive effect on Islamic financial inclusion. Islamic financial literacy and financial technology simultaneously have a significant positive effect on Islamic financial inclusion. The regression model is declared feasible because it can significantly explain variations in dependent variables.

PurposeThis paper aims to describe earnings growth and marketability generated by Islamic banks in Indonesia and to find the effects of a moderated mediation model on the nexus between Islamic financial inclusion and literacy, marketability and earnings growth.Design/methodology/approachThe sample of this research was Islamic commercial banks in Indonesia listed on the Financial Services Authority and Bank Indonesia using time-series data of financial statements from 2014 to 2021. This research was designed using the model of moderated mediation.FindingsEarnings growth experienced by Islamic banks in Indonesia has a positive average value followed by a positive marketability. Based on the significance test, the level of earnings growth is positively affected by marketability. The result indicates that the higher the marketability, the higher the earnings growth of Islamic banks. In a moderated mediation model, the result has found a positive effect on the nexus between inclusion supported by the role of literacy, marketability and earnings growth. It indicates that Islamic financial inclusion moderated purely by the role of literacy enhances Islamic banking marketability so that earnings growth continuously increases.Practical implicationsThe increase of literacy is an empirically proven way to strengthen market power, so the finding obtained in this research can be feedback from the scheme made by the Indonesian government in supporting the Islamic business and for the corporate area being eager to grow greater and faster in competing and equalizing its power in the banking industry. In addition, this research implies that other countries continuously promote and increase the role of Islamic financial literacy and inclusion to enhance market power and increase the growth in Islamic banking.Originality/valueThis research extends the limited scholarly work on the role of Islamic financial literacy and inclusion using a different design from prior studies. The framework of market power theory has been elaborated to find the effect of Islamic financial inclusion supported by the role of literacy on earnings growth through marketability. This research is a trailblazer in testing the nexus model between variables allowing the path analysis using the moderated mediation model.

This study aims to examine the determinants of performance in Halal micro, small, and medium enterprises (MSMEs) by positioning Islamic Social Capital (ISC) as the primary explanatory construct. To provide a more comprehensive framework, Islamic Financial Literacy (IFL) and Islamic Financial Inclusion (IFI) are integrated into the model to capture the knowledge and financial accessibility dimensions essential for Halal MSME development. A quantitative approach was employed, utilizing partial least squares structural equation modeling (PLS-SEM) on survey data from 242 Muslim-owned Halal MSMEs in Indonesia. The results reveal that ISC significantly enhances IFL, which in turn promotes IFI and ultimately strengthens MSME performance. These findings highlight the pivotal role of cohesive and ethically grounded social networks in facilitating financial literacy and access to Sharia-compliant financial services. The novelty of this study lies in integrating ISC with IFL and IFI within a single model, a relationship that has not been comprehensively explored in prior research. By bridging Islamic social capital with financial capability from an Islamic legal-ethical perspective, this study contributes new insights into how community-based mechanisms can drive the growth and resilience of Halal MSMEs.

This study aims to analyze the influence of Islamic financial literacy and the ease of use of digital services on customers’ decisions to use Islamic digital banking products, with Islamic financial inclusion as a mediating variable. The research employs a quantitative approach using a survey method. Data were collected through questionnaires distributed to Islamic bank customers who use digital services in Indonesia. Data analysis was conducted using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method with the assistance of SmartPLS 4 software. The results indicate that Islamic financial literacy and the ease of use of digital services have a positive and significant effect on customers’ decisions to use Islamic digital banking products. In addition, both variables also have a positive and significant influence on Islamic financial inclusion. Islamic financial inclusion, in turn, has a positive effect on customers’ decisions and is able to mediate the relationship between Islamic financial literacy, the ease of use of digital services, and the decision to use Islamic digital banking products. The novelty of this study lies in the development of an integrative research model that combines Islamic financial literacy and the ease of use of digital services by incorporating Islamic financial inclusion as a mediating variable within the context of digital Islamic banking. This study is expected to enrich academic literature on customer decision behavior and provide practical implications for Islamic banking institutions in enhancing inclusive and sustainable digital service adoption.

This study aims to examine the role of Islamic financial inclusion as a mediating variable in the relationship between Islamic financial literacy and women's empowerment in the halal tourism sector in Lombok, West Nusa Tenggara. A quantitative method with an explanatory design was employed to analyze causal relationships among the variables. Data were collected through a questionnaire survey targeting women entrepreneurs in micro, small, and medium enterprises (MSMEs), and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that financial literacy has a significant effect on Islamic financial inclusion, and financial inclusion significantly contributes to women’s empowerment. Furthermore, financial inclusion is proven to act as a mediator that strengthens the relationship between financial literacy and women’s empowerment. These results confirm that improving financial literacy does not directly enhance empowerment, but rather operates through optimizing access to and utilization of Islamic financial instruments.

Purpose The purpose of this paper is to investigate the relationship between Islamic branding and marketing communication with Islamic financial inclusion, with Islamic financial literacy as a mediator. This paper also provides a better understanding of how these factors interrelate and contribute to the overall objectives of Islamic finance. Design/methodology/approach This study uses cluster sampling with a purposive technique. The research sample consists of customers who have savings or deposits in Bank Syariah Indonesia, totaling 165 customers. Data analysis is conducted using structural equation modeling adopting Analysis of Moment Structures to examine the mediating effect of Islamic financial literacy on the relationship between Islamic branding and marketing communication with Islamic financial inclusion. Findings The research findings indicate that Islamic financial literacy partially mediates the relationship between Islamic branding and marketing communication with Islamic financial inclusion. Moreover, the study reveals that marketing communication has a direct effect on Islamic financial inclusion, while also exerting an indirect effect through Islamic financial literacy. These findings support the argument that Islamic financial literacy plays a crucial role in the implementation of marketing communication toward Islamic financial inclusion. Research limitations/implications This study obtained exclusive data from clients of Bank Syariah Indonesia in three major cities in Indonesia, namely, Surabaya, Semarang and Yogyakarta, enabling significant potential for generalizing these findings to other Islamic financial institutions and metropolitan areas, both domestically and internationally. The data collection method primarily used a semistructured questionnaire to gather quantitative data. The study is purely cross-sectional; thus, its approach does not consider factors of clients that could be investigated through a longitudinal approach. Practical implications This study underscores the importance of Islamic financial literacy in enhancing Islamic financial inclusion through marketing communication. It highlights that marketing efforts targeting Islamic banking customers can significantly influence Islamic financial inclusion, both directly and by improving Islamic financial literacy. Therefore, Islamic financial institutions need to focus not only on building a strong Islamic brand image but also on strengthening customers’ understanding of Islamic financial principles through effective communication strategies. This would facilitate increased community participation and engagement in Shariah-compliant financial products and services. Originality/value It is essential for a large Muslim population globally, such as in Indonesia, to ascertain the effectiveness of Islamic communication and branding by Shariah-compliant banks. There should be mediating factors such as strengthening Islamic financial literacy intensively through various media to enhance Shariah financial inclusion.

Looking at the large contribution of MSMEs to GDP growth, namely 0.2%, it can be seen that the market in this sector is supported by a fairly large portion of the workforce, reaching 96.92%. However, the low productivity of MSMEs is a concern because the input produced is not commensurate with the output produced. This research aims to investigate and understand the productivity problems faced by MSMEs (Micro, Small and Medium Enterprises) in Probolinggo, especially in Mayangan sub-district. This research covers aspects such as financial inclusion and financial literacy, with a focus on sharia approaches. This was done to understand the impact of sharia financial inclusion and sharia financial literacy on the productivity of MSMEs in the region. The study employs quantitative research methods and utilizes primary data obtained from respondent-filled questionnaires. The population consists of MSMEs in the Mayangan District, with 30 respondents selected through Probability Sampling. Then the data is processed using multiple linear regression analysis techniques using the SPSS (Statistical Package for Social Sciences) program. The results of this study indicate that Islamic financial inclusion and Islamic financial literacy have a significant effect on the productivity of MSMEs. This is evidenced by the result of the coefficient of determination analysis where the variables of Islamic financial inclusion and Islamic financial literacy affect MSMEs productivity by 84,3% and the remaining 15,7% is explained by other variables not included in this study.

This study aims to analyze the role of Islamic financial inclusion in moderating the relationship between Islamic financial literacy and people's decisions to use Islamic financial services. Amidst the growth of the global Islamic economy, Indonesia faces the challenge of a significant gap between the level of Islamic financial literacy and inclusion. This study uses a quantitative approach with a survey method of Islamic financial service users. Data analysis was conducted using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) to test the moderating effect. The results of the literature synthesis indicate that high Islamic financial literacy does not automatically increase the decision to use Islamic services without adequate accessibility through financial inclusion. Islamic financial inclusion is predicted to strengthen the positive influence of literacy on consumer decision-making. This study provides a theoretical contribution to the development of consumer behavior theory in Islamic economics and provides practical implications for regulators in formulating a national strategy for Islamic financial inclusion.

Financial literacy and inclusion are one of the government's programs. It has remained an important issue in recent years. Although there are many studies on Islamic financial literacy and inclusion, it is still rare to target Muslim women in Elite Residential. The purpose of this study is to find out how Islamic financial literacy and inclusion in Muslim Women in The Argopuro Jember Elite Residential. The method used in this study is qualitative. The primary data in this study is Muslim women in Argopuro tea Housing while the secondary data comes from journals or books. The results of this study show that Islamic financial literacy and inclusion in Muslim women in The Argopuro Residential in Jember is still low and needs to be improved. It is inversely proportional to conventional financial literacy and inclusion which is quite good. This research can be a consideration for policy makers in determining strategies to increase Islamic financial literacy and inclusion in Indonesia, especially for women from various social classes.

This study analyzes the role of interest mediation in the relationship between Islamic financial literacy, risk perception, and social influence on Islamic financial inclusion in Generation Z. This study uses a quantitative approach with a survey method of 310 Gen Z respondents in Bangka Belitung. The analysis was conducted using Structural Equation Modeling (SEM) to test the relationship between variables, including the role of interest mediation in encouraging Islamic financial inclusion. The results of the study show that interest plays a significant mediator in the relationship between Islamic financial literacy and Islamic financial inclusion. Islamic financial literacy has a positive impact on interest, which in turn increases Islamic financial inclusion. However, risk perception negatively impacts interests, which hinders Islamic financial inclusion. Conversely, social influence has a direct positive impact on Islamic financial inclusion without the need to be mediated by interest. The implications of this study show the need for Islamic financial literacy education in the form of interactive digital and product transparency to reduce risk perception. In addition, the use of social influence through communities and technology-based incentives can increase interest in Islamic financial products.