Islamic Banking Products Research Articles

UKT PAYMENT CONTRIBUTION TO THE EXISTENCE OF SHARIA BANKING

Payment of UKT (Single Tuition Fee) by students at tertiary institutions in Indonesia has an important contribution to the existence and development of Islamic banking. UKT payments play a role in increasing the number of Islamic bank customers in Indonesia. UKT paid by students often involves the banking system to manage and distribute these funds. Many universities in Indonesia have collaborated with sharia banks to provide UKT payment facilities that comply with sharia principles. Through the involvement of Islamic banks in the UKT payment process, students tend to be more inclined to use Islamic banking products and services. Thus, UKT payments contribute to an increase in the number of Islamic bank customers in Indonesia. the use of funds from UKT payments can help the development of the Islamic economy in Indonesia. Funds collected from UKT payments can be used by Islamic banks to support Islamic economic activities, such as financing micro, small and medium enterprises (UMKM) in accordance with sharia principles. Through the utilization of these funds, Islamic banks can provide financial access to sharia-based business actors, thereby strengthening the Islamic economic sector in Indonesia. In addition, funds from UKT payments can also be used for sharia banking product development and innovation, increasing operational efficiency, and expanding the range of services.

Pengaruh marketing mix terhadap minat memiliki tabungan easy wadiah pada Bank Syariah Indonesia

Indonesia is a country with a majority Muslim population. Where many Indonesian people should manage their finances through Islamic banks. However, in reality, the market share of Islamic banks is still small compared to conventional banks. It is necessary to do research on the interest of the Indonesian people to have Islamic bank products. This study aims to analyze the influence of the marketing mix on the intention to have easy wadiah savings at Bank Syariah Indonesia. This study uses a data processing tool in the form of SPSS. This type of research is quantitative primary data with simple random probability techniques and data collection using a questionnaire of 142 respondents. The research variable uses the 4P marketing mix theory. Based on the test results, it shows that product, price, and promotion variables affect the interest in having easy wadiah savings at BSI. Meanwhile, the location variable does not affect interest in having easy wadiah savings at BSI

Analysis of Customer Decision Determinants in Choosing Islamic Banking Products

Penelitian ini bertujuan untuk menganalisis apa saja faktor yang menjadi penentu nasabah memutuskan untuk memilih produk pembiayaan Kredit Pemilikan Rumah (KPR) perbankan syariah, dan juga menganalisis bagaimana kepuasan nasabah setelah memakai produk pembiayaan KPR perbankan syariah. Penelitian ini dilakukan di bank Bank Negara Indonesia Syariah yang sekarang menjadi Bank Syariah Indonesia (BSI). Adapun teknik analisis data dalam penelitian ini adalah deskriptif kualitatif dengan metode wawancara, observasi, dan studi literartur. Berdasarkan hasil penelitian, ada beberapa faktor yang menjadi keputusan nasabah dalam memilih melakukan pembiayaan KPR di Bank Syariah Indonesia yaitu terhindar dari riba, angsuran tetap, tidak adanya denda, apabila terjadi krisis moneter bank syariah tidak mudah bangkrut. Dan selanjutnya setelah dilakukan pembiayaan KPR selama lima puluh dua bulan, nasabah merasa kecewa, karena nasabah ingin melakukan pelunasan tetapi angka angsuran pokok masih sangat besar yang harus dilunasi. Hal itu disebabkan karena pihak bank syariah memasukkan nilai angsuran nasabah lebih besar ke angsuran margin dari pada angsuran pokok ketika membayar cicilan.

THE INFLUENCE OF BRAND IMAGE AND SOCIAL STUDENTS ENVIRONMENT ON THE INTEREST TO BE A CUSTOMER OF INDONESIAN SHARIA BANK WITH KNOWLEDGE AS A MODERATING VARIABLE

The low interest of the Indonesian people in utilizing Islamic banks is the driving force behind this research. This is indicated by the market share of Islamic banking of 6.52 per cent in 2021. With knowledge as a moderator variable at UIN Sumatra Utara (student case study), this study aimed to determine the effect of a person's social environment and brand image on their desire to save in Islamic banks. This study uses quantitative survey questionnaire data and smartPLS software for PLS (Partial et al.) analysis. This study had 100 respondents who were all students of UIN Sumatra Utara. Practical sampling was used to select individual categories, and non-probability sampling was used. The research findings show that a person's social environment impacts their willingness to save in Islamic banks; However, a person's brand image does not impact their desire to save in an Islamic bank, and there is no knowledge moderating variable. By adjusting the influence of this brand image, Islamic banks can moderate the influence of the social environment on the willingness to save. It is hoped that UIN Sumut students will be more interested in information and brands related to Sharia banking, especially those targeting Muslims, as a result of this finding. They will be able to switch to Islamic banking products recommended by the Qur'an and Hadith, and they will also be able to allow other researchers to look for additional independent variables that were not examined in this study and identify population groups that are different from one another.

Pengaruh Tingkat Literasi Mahasiswa UIN Banten Mengenai Bank Syariah Terhadap Minat Menabung di Bank Syariah

Islamic banks are one of the many types of banks that implement sharia principles in their operational activities. Islamic banks play an important role in supporting economic and financial growth in Indonesia, and have become an alternative for people to save and manage their money. However, there are still many Banten UIN students who do not know about Islamic banking and how it works. The level of financial and banking literacy within the scope of UIN Banten students is an important factor that has the potential to influence their interest in saving money in Islamic banks. A low level of financial and banking literacy can make students not have adequate insight into products and services of Islamic banks, thus hindering their interest in saving at the bank. Therefore, this research is aimed at examining the effect of the literacy level of UIN Banten students regarding Islamic banks on their interest in saving in Islamic banks. This research is aimed at reviewing the level of Islamic financial literacy of students of Islamic economics and Islamic banking study programs and the influence of Islamic financial literacy levels on the use of Islamic banking products. Research categorized as quantitative research. Thus, increasing literacy around Islamic banking can strengthen the interest of UIN Banten students in saving money in Islamic banks. Keywords: Influence, literacy level, Islamic bank, interest in saving

Implementasi Multi Akad Dalam Transaksi Ekonomi Syariah

The renewal of muamalah contracts is very important for the development of more dynamic, progressive and innovative Islamic banking products, so that they can compete with existing conventional banking products. The purpose of this study was to examine the legal basis and design of these multiple contracts and their application in Islamic banking products. The method used in this research is library research. with research. The results of this study are that one of the constructive efforts that is very helpful in developing Islamic banking products is al-jam'u bainal uqud/multi contract, this is a new contract that has never been discussed in classical fiqh books. Scholars allow these multiple contracts as long as they do not violate Islamic principles and values ​​because the purpose of the contracts is to clarify rights and obligations and avoid tyranny that leads to the benefit of humans in this world and the hereafter. Multi contracts in musyarakah mutanaqishah products, namely, syirkah, ijarah, and buying and selling, these contracts form one product, in ijarah Muntiyah bit-tamlik, namely wa'd contracts (promises), ijarah and buying and selling also form one product. These contracts become integrated or there is ta'alluq or attachment and linkages between contracts.
 Keywords: Multi Contract, Musyarakah Mutanaqisah, Ijarah Muntakiya Bit-Tamlik

Implikasi Pemahaman pengguna Software OLIBS 724 bagi pegawai Bank NTB Syariah terhadap loyalitas nasabah

This study aims to identify the understanding of OLIBS (Online Integrated Banking System) 724 Core banking Software users and its implications for customer loyalty of NTB Syariah banks. The research method used in this study is qualitative research, namely in-depth data processing with data from observations, interviews, and literature. Direct interviews were conducted with key informants such as officials and technical employees of the Information System Technology division of Bank NTB Syariah, front liner administrative employees of Bank NTB Syariah, and customers of Bank NTB Syariah. The result of this study is that human resources are the main asset and play an essential role for NTB syariah banks, and need to constantly be improved in skills and performance. Bank NTB Syariah needs to place training on the use of OLIBS 724 software as essential in improving the knowledge and performance of its employees (both old and new employees) so that employees can adjust to any conditions. Quality of service must start with customer needs and end with customer satisfaction. Satisfied customers get value from Islamic bank products, the value of fairness for profit sharing as expected, the value of service quality, and the value of the system or something religious emotion, which is to avoid usury. The results of this study show that employee understanding of OLIBS 724 software users positively influences customer satisfaction. The more employees understand the use of OLIBS 724 software, the more customers will be served well and quickly, which in turn will increase customer satisfaction and loyalty

Enhancing Student Engagement With Indonesian Sharia Banking: The Role Of Sharia Financial Literacy

The purpose of this study was to find out and analyze the influence of the level of Islamic financial literacy on the interest in using Bank Syariah Indonesia products. This study uses quantitative research with associative types. The data collection technique uses a questionnaire with a population of all Islamic banking students class of 2021, Faculty of Economics and Islamic Business, UIN Syarif Hidayatullah Jakarta. The sampling technique used purposive sampling with the criteria of students who did not have accounts at Islamic banks, namely as many as 67 people. The analysis technique used is simple regression analysis with the help of SPSS version 20 software. The results showed that first, Islamic financial literacy level has a positive and significant effect on students' interest in using Islamic bank products with a tcount of 7.964 (> 1.99714) and a significance value of 0.000 (<0.05).The coefficient of determination (R2) is 0.494 which means that the ability of Islamic financial literacy to explain students' interest in using Islamic bank products is 49.4%. Second, the better the Islamic financial literacy level of a student, the higher the interest in using products at Islamic banks. Thus, Islamic financial literacy is needed with high intensity so that it provides benefits for students and the wider community.

An Exploration of the Attitude, Perceived Value and Awareness of Islamic Finance towards Acceptability among White-Collar Elite: Case of Central Kampala, Uganda

Islamic finance is a substantive paradigm premised on Islamic epistemology. This is a new concept in Uganda. In the amended Financial Institution Act, legislation was passed to develop Islamic finance. This will enable the creation of a series of Islamic finance products benefiting the Ugandan populace. In addition, the passing of the final Regulations of the Act by the Ministry of Finance is expected to provide accommodation of Islamic finance into the laws of Uganda. Concomitantly this study sought to explore awareness, attitudes towards and perceived value of Islamic finance towards its acceptability by white collar elite in the capital city of Uganda. The study adopted a purposive sampling and a multivariate linear regression was used to understand the effect of three key factors anticipated to affect the acceptability of Islamic financing in Uganda that is attitude, perceived value and awareness. The results reveal that awareness of Islamic banking products and services is likely to positively affect the attitude of the elite towards Islamic banking. More than half (52%) of sampled elites were not aware of Islamic finance and 51.9% are bound to use Islamic banking and financial products only if it is made available in Uganda. Additionally, 76.8% firmly believe that Islamic finance is benevolent to their well-being. A fact suggests that the more an individual is made aware of Islamic Finance, the more likely their attitude towards Islamic Finance products. Additionally, the intention of the elite in Uganda to accept Islamic banking is more affected by their perceived value rather than their attitude.

THE INFLUENCE OF FINANCIAL LITERACY AND PROMOTION LEVEL ON THE INTEREST IN USING ISLAMIC BANK PRODUCTS IN STUDENTS OF UIN SUNAN GUNUNG DJATI BANDUNG

AbstractThis research was motivated by the significant use of Islamic bank products for UIN Sunan Gunung Djati Bandung students. This paper aims to determine the influence of financial literacy and promotion on interest in becoming a Sharia bank customer for UIN Sunan Gunung Djati Bandung students. The use of methods used in this study is quantitative research methods and surveys. The population in this study was 29,350 students of UIN Sunan Gunung Djati Bandung , and a sample of 88 respondents was obtained. The sampling technique uses clusters. Data collection method by questionnaire. The results revealed that the level of Islamic financial literacy had a significant value of 0.000 < 0.05 and had a positive and significant effect on public interest in saving at Islamic banks. In contrast, promotions of 0.061 > 0.05 so that it had no effect and was not compelling to people's interest in saving at Islamic banks.Keywords: Financial Literacy, Promotion, Interest, and Islamic Bank.

Analisis Konsumsi Simbolis Sebagai Variabel Moderator Antara Pengaruh Halal Lifestyle Terhadap Minat Pembelian Produk Perbankan Syariahh

Indonesia's population is 267 million people with 87% of the population being Muslim and the largest in the world. However, the growth of Islamic banking in Indonesia is still far behind that of Malaysia. The total assets of Indonesian Islamic banking are US$ 82 billion while the total assets of Malaysian Islamic banking are US$ 491 billion. The purpose of this study was to determine the effect of halal lifestyle on the intention to purchase Islamic banking products and symbolic consumption as a moderator variable between Halal Lifestyle and Interest in Purchasing Islamic Banking Products. This research is a type of quantitative research, a linear regression analysis model using the Moderating Regression Analysis (MRA) method. This method is carried out to add the multiplication variable between the independent variables and the moderating variable. The research respondents were 100 Islamic banking customers domiciled in DI Yogyakarta. The results of the research analysis show that the halal lifestyle variable on purchase intention has an r-square value of 0.252, a t-count value of 5.742 > 1.664 t-table, and a significant probability value of 0.000 <0.05. The influence of halal lifestyle is 25.2% partially and significantly to the variable interest in purchasing Islamic banking products. The symbolic consumption variable can act as a moderator and strengthen the influence of halal lifestyle on the intention to purchase Islamic banking pro

Islamic banks’ service quality in Somalia: Customer loyalty, satisfaction, and the role of trust as a mediator

The purpose of this study is to assess how the PAKSERV paradigm affects brand loyalty, customer satisfaction, and trust in Somalia's banking industry. With an emphasis on the mediating function of trust in the Somali scenario, these comprehensive assessments stress the cultural component of quality of service. This study adopts a quantitative method by assessing 370 Islamic bank customers in Somalia for two main cities, Mogadishu and Hargeisa. Our respondents are existing and potential users of Islamic bank products and the sample was selected using the convenience sample technique. The data were examined with the quantitative method of structural equation modeling using SmartPLS 3.3.7. The study found a connection between client satisfaction, loyalty, and the PAKSERV quality of service attributes through the intermediary role of trust. In the cultural context of Islamic finance in Somalia, this study offers fresh information on how trust may function as a partial mediator in the interaction between client satisfaction and customer loyalty.

IMPLEMENTATION OF MUDHARABAH CONTRACTS IN SYARIAH BANK

In the aspect of Islamic banking, mudharabah contracts are a type of contract that is quite common in various types of products and programs offered by Islamic banks. One of the Islamic bank products that has operational provisions using a mudharabah contract is financing or the process of borrowing capital.One of the highlights is financing using a mudharabah contract. Mudharabah itself can be interpreted as a cooperation contract between two parties in which the first party provides all the funds, while the second party acts as the manager of the funds and profits are shared between them according to the agreement while losses are only borne by the owner of the funds.

Factors Influencing the Low Demand for Salam Financing Contracts in Indonesia – Concept Paper

Salam financing is significant in the agricultural sector, especially for seasonal food crops. It has many benefits for the community, particularly for poor farmers, and it is appropriate in the agriculture sector. This paper aims to discuss the factors influencing the low demand for Salam financing contracts that are impactful to either buyer, the bank, or the seller, the farmer. This study adopts a qualitative approach, which includes reviews and analysis of secondary data in relevant literature and documents relating to Salam financing contracts in the Indonesian banking industry. The significant findings of this study are the identification of human resources in Islamic banks that should be improved in terms of their knowledge of Islamic banking products. It is crucial also to know how to innovate for a sustainable and implementable product. In order to address the challenges in Salam financing, it is proposed to reduce internal and external issues with Salam financing. This study adds new knowledge to the existing literature by optimizing the Salam contract in Islamic banking to overcome capital problems in the farming sector and collaborating with agricultural insurance to cover capital costs that farmers cannot pay when crop failure occurs. This study will recommend the methods to overcome the problems stated faced by Islamic banking, including using fintech to counter the issues.

Productivity of Rural Banks in Central Java

This study aimed to analyze the level of productivity, the factors that influence it, the potential for improvement needed, and a comparison of the productivity of Rural Banks (BPR) and Islamic Rural Banks (BPRS) in Central Java. This research also looks at the productivity of BPR and BPRS during the Covid-19 pandemic. The research period used in this study is from 2016-2021, with a research sample of 9 BPR and 7 BPRS in Central Java. The analytical method used is a non-parametric approach, namely the Malmquist Productivity Index (MPI), with secondary data sources derived from BPR and BPRS financial reports on the Financial Services Authority (OJK) website. The results of the study show that during the COVID-19 pandemic, BPR and BPRS experienced an increase in productivity in general, where BPRS showed better performance with higher technology adoption and higher average Total Factor Productivity Changes (TFPCH) values, while the change in efficiency (EFFCH) tends to decrease; As a result, BPRS occupy a better position in quadrants 1 and 2 in the division of the four types of BPR and BPRS based on the level of technology and efficiency. This research also provides recommendations to BPR and BPRS practitioners, management, and regulators.

Pembiayaan Sindikasi Bank Syariah Perspektif Hukum Ekonomi Syariah

From the standpoint of Islamic Economic Law, this article seeks to describe and examine the syndicated financing of Islamic Banks in Indonesia. With the kind of library research used to examine the formulation of the problem in this study, a qualitative research methodology was used to conduct this study. The findings of this study suggest that a hybrid contract or multi-contract approach can be used to implement Islamic banking product innovation. Sharia syndicated finance products exist in banking as a result of the requirement for huge quantities of funding, which means that Islamic banks must work with other banks since they will not be able to support it alone. In accordance with the Fatwa DSN No: 91/DSN-MUI/IV/2014, syndicate financing is permitted. Musyarakah Mutanaqishah contracts are typically used for syndicated financing in Islamic banks. The Sharia Banking Law, KHES, Fatwa DSN, and other relevant rules have both been accommodated by syndicated financing in Islamic banks. The Sharia Supervisory Board will continue to oversee the implementation of syndicated financing products at Indonesian Islamic Banks so that it is, in theory, consistent with Sharia Economic Law and no restrictions are broken.

THE URGENCY OF MAQASHID SHARIA IN THE DEVELOPMENT OF SHARIA BANKING PRODUCTS

AbstractThe movement and growth of Islamic banking in Indonesia is increasing every year and is in demand by Muslim and non-Muslim customers. This has encouraged Islamic banking to develop its products so that they can compete with conventional banks. However, of course, this must be balanced with knowledge of Islamic maqashid and ushul fiqh in the development of banking products which are sometimes ignored by Islamic financial institutions. As a result, there is rigidity, narrow space for movement and even negligence and errors in inspection and auditing. In this paper using library research methods (library research) with a qualitative approach. The urgency of maqashid in Islamic banking products regulates all fatwas, regulations, financial and banking products as well as fiscal and monetary policies so as not to lose their shari'ah substance. Maqashid syari'ah is a determining factor in creating sharia economic products that can play a dual role (social control tools and socio-economic engineering) to realize the benefit of Muslims. Keywords: Sharia Banking; Maqashid Syariah; Banking Products.

An Insight into Investment and Deposit Products Offered by Islamic Banks in Malaysia

The aim of this paper is to understand the practical application of investment and deposit products in comparison with the guidelines offered by the Islamic Financial Services Act (IFSA). Here, the products’ features and benefits of the banks’ deposit and investment products are highlighted. A performance analysis of both products is conducted among different banks in Malaysia, and their results are used to draw conclusions on the effects of IFSA on banks. The data was based on two banks in Malaysia: one was a fully-fledged Islamic bank, and the other was a subsidiary bank offering Islamic banking products. The information was obtained from the banks’ websites, annual reports, and Bank Negara Malaysia’s (BNM) website. The findings of the research are that the two banks analyzed all conform to the guidelines issued by IFSA. The volumes of investment products have significantly decreased after the introduction of IFSA compared to the volumes of deposit products. Bank Islam and CIMB Islamic both provide items that are suitable for use with an IFSA. Customers have a thorough understanding of the benefits of various types of deposits and investments.

Application of tawarruq in Islamic banking institutions in Somalia

PurposeThe purpose of this study is to examine the acceptability of tawarruq in the banking industry in Somalia, focusing on awareness, need, compatibility, relative advantage, behavioral attitude and the role of Shariah scholars. This study is governed by the Theory of Islamic Consumer Behavior.Design/methodology/approachA questionnaire survey was conducted involving 150 customers of Islamic banks in Mogadishu, Somalia. This research adopts a quantitative methodology, using descriptive and survey analyses by employing SPSS 23. Smart-PLS-4 SEM was used to test the six hypotheses established in the study.FindingsThis study provides evidence that the customers of Islamic banks in Somalia are looking forward to Islamic banks offering tawarruq in the country. Respondents viewed tawarruq as a very attractive product compared to other existing products of Islamic banks in the country. The need for tawarruq, its compatibility and relative advantage have a positive and significant influence on the intention to use tawarruq products for cash financing purposes, whereas customer awareness, behavioral attitudes and the role of Shariah scholars have insignificant influence.Practical implicationsThe findings of this study can be beneficial to all Islamic financial institutions in Somalia by applying tawarruq contract to facilitate cash financing.Originality/valueThis study contributes to the literature by enhancing the awareness of tawarruq in Somalia. The study also shed light on the need of Islamic banks’ customers on tawarruq for cash financing purposes in Somalia.

Integrating Halal Knowledge Towards Selection Of Islamic Banking Product: The Perspective Of Muslim Students

The Islamic Banking product is meant for Muslim customers and those who are interested to use the Islamic-based product. In the real world, consumers particularly students are not aware of the contents of the products including the product’s information as well as terms and condition. This study intended to examine the Halal Knowledge and Financial Information Disclosure in the selection of Islamic banking products among Muslim student. A survey questionnaire is used for data collection. The sample of this research is among the final year finance degree students. A multiple linear regression model is used for data analysis and discussion. The finding indicates that Halal Knowledge and Financial Information Disclosure are having a significant relationship in the selection of Islamic banking products. Interestingly to note that Muslim students have been exposed to Islamic Banking but not specifically to Halal knowledge in university courses. The exposure to the real Islamic banking sector is still minimal. Information related to Islamic banking products is also unclear and not well marketed. This research is expected to benefit the higher education provider to offer relevant and up-to-date courses related to Islamic banking products. The bankers also need to enhance their product information to serve the interest of this group. Lastly, this study is expected to enrich the literature on Halal Knowledge and Financial Information Disclosure on Islamic banking products.