Islamic Banking Services Research Articles

Analisis Rendahnya Minat Masyarakat Menjadi Nasabah Bank Syariah Desa Mekarsari Kecamatan Kumpeh Kabupaten Muaro Jambi

The development of an institution cannot be separated from the role of the community it self. Apart from quality, the institution must also give priority to the community, consumert or customers to maintain the continuity of the institution or argency. The activities of Islamic banking institutions must be carried out as closely as possible in introducing the products and services offered by Islamic banking with the aim of increasing or even increasing public interest and trust. In connection with this research, this thesis aims to determine the lack of public interest in choosing Islamic banking products. This type of research is qualitaive research and the data collection techniques are observation, interviews and documentation. This research involved 30 respondents in Mekar Sari Village, Kumpeh districh, consisting of various professions. From the results of research conducted by researchers, 8 respondents stated that they were interested in Islamic banking , but only 3 respondents had used Islamic banking services, and the remaining 14 respondents were not interested and used conventional banking services, then 8 respondents did not respond because they assumed that Islamic banking and conventional bank are the same. Based on the data analysis from this research, the public understanding of Islamic banking are internal and external factors, including personality, motivation, attitudes, beliefs lifestyle, religion, experience, family, culture, society and service. Of these factors, the most dominant main factors are attitude and belief factors, personality factors and community factors themselves.

EXPLORING THE BANKERS’ PERSPECTIVES ON SHARIAH AND OPERATIONAL ISSUES OF RESTRUCTURING AND RESCHEDULING IN ISLAMIC FINANCING DURING COVID-19 PANDEMIC

The Central Bank of Malaysia ordered all banks to give an automatic six months moratorium or loan or financing deferment starting April, 1 2020 to their customers during the Covid-19 pandemic since many customers had difficulties paying their monthly financing obligations to banks. Thus, the objective of this paper is to explore the bankers’ perspectives on Shariah and operational issues arising in Islamic banks in implementing moratorium which involves restructuring and rescheduling financing facilities during Covid-19 pandemic. At the same time, the methods these bankers used to manage the issues are also highlighted in this paper. A qualitative analysis is applied in this paper where the researchers conducted interview sessions with the Head of Shariah Department from an Islamic banking window and another from the Development Financial Institution which offers Islamic banking products and services. This study's findings show that there are certain perspectives from bankers in dealing with Shariah issues regarding restructuring and rescheduling during moratorium such as the issue of qalb al-dayn (debt restructuring), capitalization of accrued profit in the financing facilities as well as the operational issues related to the system and people. It can be deduced then that all Islamic banks were doing extremely well in their steadfast endeavors towards offering remedies to the issues faced for the sake of the overall improvement of Islamic banks in the implementation of restructuring and rescheduling of financing facilities as outlined by guidelines or Resolutions issued by the Shariah Advisory Council of Bank Negara Malaysia.

The Role of Customer Intention Regarding Environmentally Sustainable Islamic Banking in Indonesia: Examining the Structural Model

Environmental degradation is a global concern for businesses, requiring consistent effort to maintain sustainable environmental practices. Environmental sustainability is a crucial issue of concern to everyone, an increasing proportion of people are paying attention to various environmental issues in all parts of their lives, including in the context of Islamic banking. This research aims to develop and test a contextual framework for studying customer intentions in adopting sustainability Islamic banking activities and services. The study uses the Theory of Planned Behavior (TPB) model, adding new constructs to the main variables, such as trust, environmental consciousness, and perceived environmental outcomes. The survey collected data from 198 customers of Islamic banks in Indonesia, with the PLS-SEM modeling technique used to test the research model. The results show that perceived behavioral control is a significant influence on behavioral intentions, while attitude and subjective norms have no significant effect on behavioural intentions. Environmental consciousness significantly affects perceived environmental outcomes, which, in turn, significantly affect trust as well as behavioural intentions. Other statistical results find that environmental consciousness can affect behavioral intentions when mediated by perceived environmental outcomes. Overall, this study has theoretical and managerial implications and offers directions for future research on environmentally sustainable Islamic banking.

The merger of three state owned shariah bank in Padangsidimpuan

Abstract
 Purpose - The objective of this study is to identify the positive and negative impacts of the merger of Islamic banks on the community or customers and employees of Islamic banks in Kota Padangsidimpuan.
 Method - To address this issue, this study employed a qualitative descriptive method. Data collection for this study used the interview technique. This study involved 15 informants from the local community and 5 informants of bank employees.
 Results - The merger of Islamic banks in Kota Padangsidimpuan brought both advantages and challenges for the community and bank employees. On the bright side, the merger expanded the reach of Islamic banking services, which projected there are more people could now access essential financial products and services like savings accounts, loans, and investments. This potentially boosted financial inclusion and economic activity in the city. The merger also enhanced job security for employees, by becoming part of a larger, state-owned enterprise like Bank Syariah Indonesia (BSI), the employees gained stability and potential career advancement opportunities. However, there were also some shortcomings, the merger led to the limited access to physical banking infrastructure: The lack of new ATMs and branch offices following the merger might have inconvenienced some customers, especially those in remote areas. In addition, it adjusted the period for employees, which adapting to new systems and regulations after the merger could have been challenging for some employees, requiring additional training and support. Overall, the merger's impact was mixed. While it provided broader access to Islamic banking and job security for employees, it also highlighted the need for further expansion of physical banking infrastructure and support for employees during transitions. Addressing these challenges could help maximize the positive outcomes of the merger for the community and bank employees in Kota Padangsidimpuan.
 Limitation – The generalizability of the findings may be limited due to the study's focus on a single merged Islamic bank in one city.
 Practical Implicative - The consolidation of three Islamic banks marks a significant step in enhancing Sharia-compliant financial services. This merger has the potential to benefit both the community and the national economy. By uniting resources and expertise, the new entity offer a wider range of Sharia-approved products and services, catering to the specific needs of the community while also contributing to broader societal well-being and economic development.

PERSEPSI MASYARAKAT TERHADAP BAGI HASIL BANK SYARIAH (STUDI KASUS DI DESA SEDERHANA PERDAGANGAN II)

Many people think that profit sharing is the same as conventional bank interest. The purpose of this study was to determine the perception of the Sederhana Village community towards the Islamic bank profit sharing system. This type of research uses a qualitative approach and collects data from the people of Sederhana village by using library materials (library survey). Data collection methods are observation and interview. The data analysis method is by reducing the data and presenting the data to draw conclusions. The knowledge of the Sederhana village community regarding benefit sharing is still relatively low. This is because, in addition to never having been an Islamic bank customer, this community also admits the lack of information and socialization related to this profit sharing. This lack of understanding is one of the factors that influence the perception of most people in Sederhana Village, so they still assume or suspect that profit sharing and conventional bank interest are not much different in the use of Islamic banking services and services.

Analisis Pengetahuan Generasi Milenial Non Muslim Terhadap Bank Syariah di Kota Solo

This study aims to determine the knowledge level of non-Muslim millennial generation towards Islamic banks in Solo City. This type of research uses a qualitative methode with the Accidental Sampling technique by interviews with 8 non-Muslim millennial generation respondents. The results of this study, for the first category of knowledge about the existence of Islamic banks, 88% non-Muslim millennial generation knows about the existence of Islamic banks. The second and third category is about operations and the product of Islamic bank has same result above 63 % of non-Muslim millennial generation does not know the operations products and services provided by Islamic banks of Islamic banks. The fourth category about the differences between conventional banks and Islamic banks, only 50% of the non-Muslim millennial generation know about it. The existence of Islamic banks that are universal is not generally known by the non-Muslim millennial generation even its in a big City. Non-Muslim millennials think that knowledge of Islamic banks is only limited to sharia labels without knowing about the operations, products and services of Islamic banks.

Analysis Of Intention To Use Digital Islamic Banking Among University Students In Indonesia

The current growth of digital banks is accelerating. This can be seen from the number of users experiencing significant growth throughout the world, including Indonesia. Perceived usefulness and religiosity are important things to create attitude. If these things and social influence as well as features are perceived by potential users, it can lead to intention to use. The purpose of this research is to analyze the effect of perceived usefulness and religiosity through attitude and social influence as well as features as exogenous variables on intention to use on Islamic Digital Banks. This study uses quantitative research methods using SEM-PLS analysis techniques. Data collection was obtained through a Likert scale questionnaire. The sample collection used a convenience sampling technique with a sample size of 106 respondents. The sample criteria in this study were Muslim university students throughout Indonesia aged 20-24 years. The results indicated that perceived usefulness and religiosity have a positive influence on Intention to Use through Attitude towards Islamic Digital Banks. Meanwhile, social influence and features have a direct and significant positive effect on intention to use on Islamic Digital Banks. The conclusion of this research suggest that Islamic digital banks should actively coordinating with fatwa-making institutions to jointly declare that Islamic digital banks are not prohibited by Islam. Thus, the public will be more assured to use Islamic digital bank services, so that the number of customers will increase.

THE DETERMINANTS OF DIGITAL BANKING ADOPTION AMONG BANKS OFFERING ISLAMIC BANKING SERVICES

Technology advances in the financial sector have been a topic of much discussion within the banking industry. It is believed that the adoption of digital banking by banks depends greatly on their characteristics and the market they operate. This study examines the relationship between bank and market characteristics and the adoption of digital banking among banks that offer Islamic banking services in Indonesia. Data are gathered from banks’ annual reports, their first mobile banking app, financial reports, and banking statistics from 2010 to 2022. A panel logistic regression is utilized in the analysis. The results indicate that bank and market characteristics have a meaningful impact on a bank's decision to adopt digital banking. Additionally, it is found that banks are more inclined to adopt digital banking during the COVID-19 pandemic.

The Role of Innovation Management and Business Strategy to Boost the Sustainable Performance of Islamic Bank in Indonesia

Purposes: In terms of asset share and market share, Islamic banks in Indonesia continue to perform worse than conventional banks. This contrasts with the majority Muslim population in Indonesia. Considering, this research is aimed at investigating the influence of innovation management and business strategy on the performance of Islamic banks in Indonesia. Theoritical Framework: This study employs a causal research approach. With a quantitative methodology and cross-sectional data collection, explanatory research was conducted. Exogenous variable in this research is innovation management and business strategy. The endogenous variabel in this reasearch is Sustainable Islamic Bank Performance. Design/Methodology/Approach: This study's unit of analysis is the Islamic banking service industry. The survey includes a sample of 197 Islamic banks., including Islamic Commercial Banks, Islamic Business Units, and Islamic People Financing Banks, according to data from the Financial Services Authority (OJK). The unit of observation or respondent is the management/top management of each of these banks. The number of samples taken was 75. The measurement scale employed an ordinal scale based on the Likert technique. For data analysis, the SEM (Structural Equation Modeling) technique was utilized. Result: Business strategy and innovation management have a significant impact on the sustainable performance of Islamic banks in Indonesia, according to the results of a test of hypotheses. Innovation management has a greater impact on the performance of Islamic banks than business strategy. Research, Practical and Social Implications: The managerial ramifications of this study's findings are that the management of Islamic banks must reconsider and reformulate their business strategies to be more in line with current conditions, as well as develop innovative management in line with the ever-changing technological trends. Originality/Value: The novelty of this study is that innovation and strategy in Islamic Banks are important aspects that empirically influence the sustainability performance of Islamic Banks. Aspects of innovation and strategy are important when managing Islamic Banks so that they can grow and obtain positive profits.

Examining the Impact of Trust and Image on The Loyalty of Islamic Banking Clients in Indonesia: an Empirical Study

Exploring the multifaceted dynamics of customer loyalty in Islamic banking, this study investigates the roles of trust and corporate image in Eastern Indonesia's Islamic banking sector. Employing structural equation modelling (SEM) as the analytical tool, the research uncovers the intricate interplay between corporate image, trust, and customer loyalty. Results indicate that a solid corporate image significantly and positively influences customer trust. This trust is crucial in boosting customer loyalty towards Islamic banking services. Highlighting the importance of corporate image, the study reveals its role as a cornerstone in building and reinforcing customer trust, which is crucial for fostering long-term customer relationships. The research provides strategic insights for Islamic banks in Eastern Indonesia, suggesting that a focus on enhancing corporate image and trust can lead to increased customer loyalty. This contribution enriches the understanding of loyalty dynamics within the Islamic banking sector, underscoring the significance of trust and corporate image in the unique market context of Eastern Indonesia.

Assessment of the Attractiveness of the Algerian Banking Market through the Application of Porter's Five Forces Model

This study aims to analyse the competitiveness of the Algerian banking sector by attempting to apply Porter's Five Forces model. Additionally, it examines the attractiveness of the Algerian banking market. To achieve these objectives, a descriptive approach was adopted by analysing statistics from the Algerian Central Bank and the results of previous studies. An inductive method was also used to apply Porter's Five Forces model to the Algerian banking sector. The study concluded that the banking industry in Algeria is unattractive due to the weakness and lack of implementation of all five competitive forces in Porter's model within the Algerian banking sector. However, despite this, entering the Algerian banking market could be profitable if the focus is on improving the weaknesses in the market, such as electronic banking services, financing for freelancers and startups, foreign trade, and Islamic banking services.

Upper-middle-class Muslim characteristics on cash waqf (Islamic endowment) participation for productive purposes: does one-fits-all strategy still works?

Purpose To better understand the characteristics of Indonesian Muslims, this study uses cluster analysis to group upper-middle-class Muslims based on psychographic variables related to participation in cash waqf for productive purposes. Design/methodology/approach This study used mixed methods to build and analyse the segmentation of upper-middle-class Muslims towards cash waqf and propose scenarios for a cash waqf model based on the findings. Findings This study identified six clusters for upper-middle-class Muslims related to the participation in cash waqf for productive purposes. All clusters show heterogeneous values of all factors. Although relatively few Muslims perform cash waqf for productive purposes, the high scores for the economic rational, family and community factors indicate great potential for the development of various cash waqf models for investment purposes. The next challenge will lie in reviewing the “one-fits-all strategy” in the development of program, education and socialisation. Based on the findings, this study proposes three scenarios of cash waqf participation: as wakif only (waqf donor), investor only (capital provider) and hybrid participation (waqf donor and capital provider). Research limitations/implications The limitation of this study is the location and object of the sample are only Muslims in Indonesia who are categorised as upper-middle class in terms of their monthly income. Based on this study’s findings, other Muslim-majority countries worldwide have the potential to develop a cash waqf model that is integrated with financial instruments and involves the role of Islamic banking and other Islamic commercial institutions in future research development. Researchers can also attempt to include a simulation or experiment method to construct and validate the proposed cash waqf model based on this study’s findings and to explore other factors that have not been addressed. Practical implications The findings of this study can contribute as a foundation for the development of a cash waqf model and business-marketing strategy to increase the participation of upper-middle-class Muslims. Social implications The findings of this study will support the acceleration of cash waqf collection for investment initiatives, which in turn will have a broader social and economic impact nationally. Originality/value To the best of the authors’ knowledge, this study constitutes the first attempt to specifically investigate upper-middle-class Muslim segmentation toward cash waqf participation for productive purposes. This study’s knowledge is helpful for various stakeholders such as academia, the Islamic banking industry, regulators and the Muslim community about customer segmentation to Islamic banking products and services related to cash waqf.

The dynamics of perception and trust in decision-making among MSMEs: Insights from Islamic banking financing

This study explores the impact of perception and trust on Micro, Small, and Medium-sized Enterprises (MSMEs) in their decisions regarding Islamic bank financing. Contrary to expectations, neither perception nor trust significantly influences MSME entrepreneurs' decisions. Negative perceptions and trust considerations do not deter MSMEs from choosing Islamic banking, with factors like convenience and efficiency playing a more pivotal role. The findings highlight the importance of streamlining processes and enhancing accessibility to financing opportunities to better serve MSMEs. Further research is needed to deepen understanding and enhance the effectiveness of Islamic banking services.

ANALYSIS OF INTENTION TO USE ON ISLAMIC DIGITAL BANK IN INDONESIA

The current growth of digital banks is accelerating. This can be seen from the number of users experiencing significant growth throughout the world, including Indonesia. Perceived Usefulness and Religiosity are the important things to create Attitude. If these things and Social Influence as well as Features are perceived by potential users, it can lead to Intention to Use. The purpose of this research is to analyze the effect of Perceived Usefulness and Religiosity through Attitude and Social Influence as well as Features as exogenous variables on Intention to Use on Islamic Digital Banks. This study uses quantitative research methods using SEM-PLS analysis techniques. Data collection was obtained through a Likert scale questionnaire. The sample collection used a convenience sampling technique with a sample size of 106 respondents. The sample criteria in this study were Muslim university students throughout Indonesia aged 20-24 years. The results indicated that Perceived Usefulness and Religiosity have a positive influence on Intention to Use through Attitude towards Islamic Digital Banks. Meanwhile, Social Influence and Features have a direct and significant positive effect on Intention to Use on Islamic Digital Banks. Conclusion of this research suggest that Islamic digital banks should actively coordinating with fatwa-making institutions to jointly declare that Islamic digital banks are not prohibited by Islam. Thus, the public will be more assured to use Islamic digital bank services, so that the number of customers will increase.

Implementasi Karakteristik Akad Murabahah pada Produk Pembiayaan KBB (Kendaraan Bermotor Barokah) di BMT UGT Nusantara Capem Socah

The development of Islamic banking has made many Islamic banks appear, including conventional banks, to participate in opening Islamic banking services, so that the use of murabahah contracts is increasingly used. However, the reality on the ground is that many people do not understand the implementation of murabahah contracts, so that many people still think that the practices of Islamic banks and Islamic financial institutions are not much different from those of conventional banks. BMT UGT Nusantara Capem Socah provides a variety of financing products that use murabahah contracts, one of which is KBB (Barokah Motorized Vehicles), where the characteristics of the implementation of this financing BMT provides goods that customers want which are obtained from dealers directly by BMT, then sold to customers by informing the price acquisition plus profits according to the agreement between the BMT and the customer. This research uses a qualitative approach to the type of descriptive research. Data collection techniques through interviews, documentation and literature studies. The results of the study show that the implementation of the characteristics of a murabaha contract in KBB financing at BMT UGT Nusantara Capem Socah is in line with the principle of a Murabahah contract which makes BMT a supplier of goods which is used as the object of a murabaha contract that sells goods with legal ownership status, then sells them to customers at the cost price. plus profits according to the agreement of both parties and in its application using the first type, namely the consistent type of muamalah fiqh.

Behavioral intention to adopt Islamic banking digital services: A modified UTAUT2 approach

Purpose — This research aims to identify the factors that influence customers in using digital Islamic banking services by modifying the UTAUT2 model to include Perceived Credibility and Perceived Risk variables.Method — This research employs a quantitative approach to test and validate the hypotheses formulated. The study population consists of Islamic bank customers in Indonesia. For sample selection, a purposive sampling technique was employed, with the inclusion criterion being that respondents must be Islamic bank customers who have utilized digital Islamic banking services. Data were collected from 373 Islamic bank customers through online Google Forms. The data analysis technique utilized in this research is the Partial Least Squares (PLS) method, conducted using SmartPLS software.Result — The research results indicate that nearly all UTAUT2 variables significantly impact customers' adoption of digital Islamic banking services. Specifically, Perceived Credibility significantly influences customers' adoption of these services, and similarly, Perceived Risk significantly affects customers' adoption of digital Islamic banking services.Contribution — This research introduces a novel framework by modifying the UTAUT2 model, incorporating the variables of Perceived Credibility and Perceived Risk as extensions to the UTAUT2 model.

Determinants of consumer adoption of Islamic mobile banking services in Indonesia

Islamic banking must concentrate on customer service and loyalty to be competitive because the financial sector delivers almost identical goods and services. Mobile banking is one of the most recent advances in the financial sector and can be advantageous to bank customers and banking institutions. This study aims to explore the elements that affect Islamic bank customers’ propensity to adopt Islamic mobile banking services. Internet connection quality, bank reputation, and awareness are included as new factors to the Technology Acceptance Model (TAM) theoretical framework used in this study to evaluate the relevant issue. The online survey was administered through a questionnaire, yielding 265 responses obtained from Islamic Mobile Banking users in Indonesia. The PLS-SEM method was used to analyze the data. Results indicated that perceived utility, internet connection quality, consumer awareness, and bank reputation had a substantial beneficial effect on customer inclinations to utilize Islamic vehicle banking services. However, perceived usability does not have a significant favorable effect. Understanding these characteristics would enable participants in the Islamic finance industry to design and plan relevant strategies to promote financial services to present and prospective users. AcknowledgmentThe author would like to acknowledge the Research and Innovation Institute (LRI), Universitas Muhammadiyah Surakarta, for providing significant financial assistance in writing this research through the HIT funding scheme with number 01/A.6-II/FAI/1/2022.

Attitude Approach to Behavior In Interest to Use Sharia Banking Services

The purpose of the research conducted was to test the Theory of Planned Behavior on the interest in using Islamic banking services in Indonesia. Sampling using purposive sampling method, amounting to 93 respondents. Multiple linear regression analysis techniques is used to analyze the data obtained from the sample. Research shows that attitudes towards behaviour and perceptions of behavioural control have no effect on the intention to use Islamic banking servicces, where people feel the benefits of Islamic banks do not significantly affect their activities in conducting transactions in the banking world. Meanwhile, subjective norms affect the intention to use Islamic banking services. That he circumstances of the surrounding environment and the greater encouragement from the closest people will increase one's interest in using Islamic banks.

Keputusan Penggunaan BSI Mobile Ditinjau dari Kemudahan, Kemanfaatan dan Keamanan Fitur Layanan pada Generasi Milenial di Wilayah Solo Raya

Raya area still choose to use conventional bank services and have not yet used Islamic bank services. This study aims to determine the effect of convenience, benefit and security variables on the use of BSI Mobile. The sampling technique used clustered and random sampling methods. The population obtained from each region is 1,412,000 people, resulting in a minimum sample size of 107 respondents. Analysis of the research data using multiple linear regression analysis. The results of this study show that the convenience and benefit variables significantly influence the decision to use the mobile banking, while the security variables does not affect the decision to use BSI Mobile

Intention to Use Islamic Banking Products and Services: Evidence from Malaysia

This study examined the non-economic factors that affect Malaysian’s desire to employ Islamic banking (IB) products and services to preserve financial stability. The study expanded the Theory of Planned Behavior by adding components: awareness and religiosity. The non-probability voluntary sample method was used to gather information from 303 Malaysians who met the requirements of being over 18 years old, not holding any IB products and services, or holding IB products and services but have been inactive in the past one year. A self-administered online questionnaire was disseminated to the respondents across the country using the social media platforms. The data was analyzed using the partial least squares structural equation modelling (PLS-SEM) method. It is discovered that Malaysians’ intentions to use IB products and services are significantly affected by attitudes, perceived behavioral control, subjective norms, awareness, and religiosity. To innovate and offer cutting-edge Shariah-compliant products and services in the individual and business sectors, Islamic banks must use successful techniques. According to the study, religiosity significantly affects people’s behavior, especially when it comes to their intent to utilize IB products and services.