scholarly journals DEVELOPING ISLAMIC FINANCIAL INCLUSION INDEX FOR ISLAMIC BANKS IN INDONESIA: A CROSS-PROVINCE ANALYSIS

2019 ◽  
Vol 5 (4) ◽  
pp. 691-712
Author(s):  
M. Mahbubi Ali ◽  
Muhammad Rizky Prima Sakti ◽  
Abrista Devi
Keyword(s):  
Low Income ◽  
National Level ◽  
Financial Inclusion ◽  
Three Dimensions ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Industry ◽  
Policy Makers ◽  
Banking Services ◽  
The Relationship

This study measures Islamic financial inclusion index in Indonesia based on three dimensions, namely: the accessibility, the availability, and the usage of Islamic banking services. Additionally, it also measures the relationship between Islamic financial inclusion index and human development index. The study found that the level of Islamic financial inclusion in Indonesia is relatively low at a national level. DKI Jakarta is the most financially inclusive province in Indonesia, followed by East Java and Nanggroe Aceh Darussalam. In contrast, East Nusa Tenggara has the lowest average of Islamic financial inclusion index. The findings of the present study suggest that the policy makers and Islamic financial industry should play greater role in improving financial access to low-income segment especially in the Eastern part of Indonesia, such as East Nusa Tenggara and Papua provinces.    

The role of religious norms, trust, importance of attributes and information sources in the relationship between religiosity and selection of the Islamic bank

2017 ◽  
Vol 8 (2) ◽  
pp. 158-186 ◽  
Author(s):  
Hardius Usman ◽  
Prijono Tjiptoherijanto ◽  
Tengku Ezni Balqiah ◽  
I. Gusti Ngurah Agung
Keyword(s):  
Information Source ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Traditional Group ◽  
Banking Services ◽  
Content Type ◽  
Conventional Banks ◽  
The Relationship ◽  
Intervening Variables

Purpose This paper aims to examine the assumption used in previous studies that all Muslims adopt and believe the same law on the prohibition of bank interest and to investigate the indirect effect of religiosity on customers’ decision for using Islamic banking services. Design/methodology/approach This study uses an exploratory approach and the natural experimental design with seemingly causal models. A total of 363 questionnaires were distributed to three groups of bank customers, i.e. Islamic banks customers, conventional banks customers and customers of both banks (121 respondents in each group). Findings The results show that the role of religiosity in the customers’ decision for using the Islamic banking services depends on religious norms variable. Religiosity affects the decision of customers in the traditional group, but it does not have any effect for the contemporary group. Other findings suggest that religiosity indirectly affects the decision for using the Islamic banks through intervening variables of trust and information source. Originality/value This is the first paper to investigate the relationship between religiosity and customers’ decision for using the Islamic banking services by considering the religious norm variable. This paper also examines indirect affects of religiosity to the Islamic banks’ choice through intervening variables of trust and information source.

scholarly journals Peran Perbankan Syariah Dalam Mengimplementasikan Keuangan Inklusif di Indonesia

ETIKONOMI ◽  
2015 ◽  
Vol 14 (2) ◽  
Author(s):  
Novia Nengsih
Keyword(s):  
Low Income ◽  
Financial Inclusion ◽  
Islamic Banking ◽  
Ratio Analysis ◽  
Islamic Banks ◽  
Financial Ratio ◽  
Financial Condition ◽  
Financial Ratio Analysis ◽  
Axial Coding

The Role of Islamic Banks in Financial Inclusion ImplementationThis study aimed to analyze the role of islamic banks in implementing financial inclusion in Indonesia. Financial inclusion is a process to provide formal financial access for the poor and low income people (unbankable people). This study was designed which approached qualitatively and quantitatively (mixed research). The qualitative data analyzed by using Straruss and Corbin’s theory consisted three major  steps: open coding, axial coding, and selective coding. Quantitative analyzed by using comparative analysis of financial statements and financial ratio analysis such as CAR, ROA, ROE, NPF, and FDR period of 2010-2014. This study proved that Islamic banking had great potential in implementing financial inclusion, it was indicated by a significant increase in funding and financing since 2010-2014 and results of financial ratio analysis also shows the performance of Islamic banking and financial condition is good.DOI: 10.15408/etk.v14i2.2272

scholarly journals INDEX OF SYARIAH FINANCIAL INCLUSION IN INDONESIA

2017 ◽  
Vol 20 (1) ◽  
pp. 99-126 ◽  
Author(s):  
Azwar Iskandar Umar
Keyword(s):  
Economic Development ◽  
Human Development Index ◽  
Financial Inclusion ◽  
Three Dimensions ◽  
Islamic Banking ◽  
Annual Data ◽  
Inclusive Growth ◽  
Banking Services ◽  
Policy Priority ◽  
Province Level

This paper calculates and analyzes the Index of Syariah Financial Inclusion (ISFI) covering three dimensions; the accessibility, the availability and the usage of Islamic banking services. Using the annual data in province level in Indonesia during the period of 2010-2015, this paper found that the Index of Syariah Financial Inclusion is generally low and Bangka Belitung is the most financially inclusive province of Indonesia. Furthermore, the results show that the Index of Syariah Financial Inclusion is positively correlated with the Human Development Index. This conclusion suggests the promotion of Syariah Financial Inclusion to be a policy priority in Indonesia to achieve the central goals of inclusive growth, welfare and economic development.

scholarly journals INCOME INEQUALITY AND REGIONAL INDEX OF FINANCIAL INCLUSION FOR ISLAMIC BANK IN INDONESIA

2019 ◽  
Vol 11 (1) ◽  
Author(s):  
Prastowo Prastowo ◽  
Diyah Putriani
Keyword(s):  
Income Inequality ◽  
Low Income ◽  
Poverty Alleviation ◽  
Regional Level ◽  
Financial Inclusion ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Limited Access ◽  
Income Household ◽  
Regional Index

This research is proposed to measure financial inclusion index in 2 dimensions (2D-FII) in Indonesia Islamic banks. This research contributes on the measurement 2D-FII in regional level in Indonesia. The result shows that value of FII in Islamic banking in Indonesia is still low. Previous works show one of the determinant on increasing inequality in any country is a limited access to financial sector, especially for low income household (Akimov, Wijeweera, and Dollery 2006; Kenourgios and Samitas 2007; Levine 2003; D. Park and Shin 2015).  In other words, low level of FII in Indonesia perhaps is caused by inequality of income. Therefore, this research recommends policymaker to have more concern on poverty alleviation program and open new Islamic banks branches in the regional level.

The impact of Islamic Shariah compliance on customer satisfaction in Islamic banking services: mediating role of service quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Selim Ahmed ◽  
Muhammad Mohiuddin ◽  
Mahfuzur Rahman ◽  
Kazi Md Tarique ◽  
Md. Azim
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Service ◽  
Mediating Effect ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the impact of Islamic Shariah compliance on customer satisfaction through the mediating effect of service quality in Islamic banking services. Design/methodology/approach A total of 334 completed and usable questionnaires were collected from customers of Islamic banks in Bangladesh to test the hypotheses. The data were analyzed using SmartPLS 3. Findings The findings of this study indicate that Islamic Shariah compliance has a positive and significant influence on service quality and customer satisfaction of Islamic banking services. The research findings also indicate that service quality partially mediate the relationship between Islamic Shariah compliance and customer satisfaction of Islamic banking services. Research limitations/implications This study only emphasized on the Islamic banking services of Bangladesh and thus findings of the present study may not be applicable to other service areas. Practical implications The implications of the research are twofold. First, a strong standardized effect of Islamic Shariah compliance on service quality implies that customers are very sensitive to Shariah compliance related to Islamic banking services. Next, maintaining service quality is another crucial aspect to satisfy customers of Islamic banks. Quality of services will only be materialized when all the promises made by the bank function accordingly. Therefore, strategy makers of Islamic banks should assess the customer service quality and satisfaction regularly to improve the overall service experience of customers. Originality/value Limited studies have been conducted to investigate the mediating effect of service quality on the relationship between Shariah compliance and customer satisfaction in Islamic banking services. This study provides valuable insights to Islamic bank to integrate the service quality along with Shariah compliance to enhance customer satisfaction.

scholarly journals The Effect of Knowledge, Promotion, and Religiosity on Intention to Use Islamic Banking Services

2020 ◽  
Vol 11 (2) ◽  
pp. 128
Author(s):  
Kardoyo . ◽  
Ahmad Nurkhin ◽  
Muhsin . ◽  
Hasan Mukhibad ◽  
Fatmala Dewi Aprilia
Keyword(s):  
Significant Influence ◽  
Research Result ◽  
Educational Background ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Banking Services ◽  
The Public ◽  
Central Java ◽  
And Gender ◽  
Knowledge Promotion

This study aims to examine the effect of knowledge, promotion, and religiosity on the interest in using Islamic banking services. The purpose of the next research is to examine the effect of knowledge on religiosity. In addition, this study also examines the effect of educational background and age on saving interest in Islamic banks. The population in this study are customers of Bank Syariah Mandiri, Brebes, Central Java, Indonesia. Ninety-nine research samples were obtained. The data collection method used was questionnaires. The data analysis method used was SEM-PLS. The results showed that only promotion proved to have a positive and significant effect on interest in using the services of Islamic banks. Knowledge and religiosity have not been proven to have a significant effect on interest in using services of Islamic banks. Likewise, background and gender do not have a significant effect. The next research result is that there is a positive and significant influence of knowledge on religiosity; there is also a positive and significant influence on the promotion of knowledge. This study recommends the importance of continuing socialization and education from Islamic banking stakeholders in Indonesia to continue introducing Islamic banks to the public.

scholarly journals Standard Quality Banking Services of Islamic Banks

2018 ◽  
Vol 8 (1) ◽  
pp. 301
Author(s):  
Haneen A. Al-Khawaja ◽  
Barjoyai Bardai
Keyword(s):  
Islamic Law ◽  
Theoretical Aspect ◽  
Islamic Banking ◽  
Islamic Banks ◽  
High Confidence ◽  
Banking Services ◽  
Standard Quality ◽  
Definition Of

This research discusses in detail the theoretical aspect of the quality standards of banking services of traditional Islamic banks. The criterion of "Shari'ah Compliance" was added by the researcher to the importance and role of dealing with Islamic banks, the definition of this standard and its importance, how to test it for banks as well as how, without the legitimate commitment of these banks to what is classified as Islamic from the foundation, we focus on the importance of the existence of a legal commitment to any Islamic bank to achieve the quality of Islamic banking services of high quality in accordance with Islamic law and laws to achieve a high confidence in the customers who belong to him and deal with his Conspiracy.

Determinants of Successful Financial Inclusion in Low-Income Rural Population

2020 ◽  
Vol 68 (1) ◽  
pp. 82-100
Author(s):  
Yashwant Kumar Vaid ◽  
Vikram Singh ◽  
Monika Sethi
Keyword(s):  
Low Income ◽  
Rural Population ◽  
Geographical Area ◽  
Developing Nations ◽  
Point Of View ◽  
Financial Inclusion ◽  
Main Concern ◽  
Policy Makers ◽  
Developing Nation ◽  
Financial Products

Finance plays a key role in the growth of developed as well as developing nations. A financially well included society leads to stronger growth. Financial inclusion aims at providing easy and affordable access to financial products and services. The main concern for any developing nation from a growth point of view is advancement of low-income rural population just as much as the high-income population. Taking a note of this, identifying the key determinants that would lead to successful financial inclusion of low-income rural population is equally, if not more, important. The inclusion strategies have to be built around these determinants to promote inclusion and thus, a clear picture of these determinants is a must have for strategy and policy makers. Though the factors may be somewhat similar across the nation, but their significance and impact on financial inclusion varies greatly from one geographical area to other. In line with this, the purpose of this study is to identify the dimensions of successful financial inclusion in the low-income rural segments with special reference to Raipur, Chhattisgarh. The study uses factor analysis to identify the determinants and path analysis to analyse the significance of these factors in financial inclusion.

Financial Inclusion and CO2 Emissions in Asia: Implications for Environmental Sustainability

2021 ◽  
Author(s):  
Shahzad Hussain ◽  
Tanveer Ahmad ◽  
Syed Jawad Hussain Shahzad
Keyword(s):  
Carbon Emissions ◽  
Environmental Sustainability ◽  
Principal Component ◽  
Financial Inclusion ◽  
Causality Test ◽  
Policy Makers ◽  
Long Term Impact ◽  
Sustainable Economic Growth ◽  
The Relationship

Abstract We examine the relationship between financial inclusion and carbon emissions. For this purpose, we develop a composite indicator of financial inclusion based on a broad set of attributes through principal component analysis (PCA) for 26 countries in the Asia region. Our robust panel regression analysis reveals a significant positive long-term impact of financial inclusion on carbon emissions. The pairwise causality test reveals unidirectional long-term causality running from financial inclusion to carbon emissions. The study suggests that policy makers may design policies that integrate accessible financial systems into climate change adaptation strategies in order to neutralize the side effect of financial inclusion deteriorating environmental quality and inclusive sustainable economic growth. JEL ClassificationO16; O44, Q54

Pengaruh Literasi Keuangan Syariah, Islamic Branding, dan Religiusitas terhadap Keputusan Mahasiswa Dalam Menggunakan Jasa Perbankan Syariah

2021 ◽  
Vol 5 (2) ◽  
pp. 226-244
Author(s):  
Fajriah Salim ◽  
Suyudi Arif ◽  
Abrista Devi
Keyword(s):  
Financial Literacy ◽  
Research Method ◽  
Partial Least Square ◽  
Least Square ◽  
Islamic Banking ◽  
Analysis Tool ◽  
Islamic Banks ◽  
Banking Services ◽  
Independent Variables ◽  
Data Analysis Tool

This study aims to determine the effect of Islamic financial literacy, Islamic branding, and religiosity on student decisions in using Islamic banking services. The dependent variable in the study is student decisions, while the independent variables are Islamic financial literacy, Islamic branding, and religiosity. The data in this study were collected through questionnaires distributed to active FAI students class 2017-2018 who had transacted using Islamic banks. The research method used is quantitative. The population in this study are active students of FAI class 2017-2018 who have transacted using Islamic banks, with data collected totaling 100 respondents. The data analysis tool used in this study uses the Partial Least Square (PLS) approach. The results of this study indicate that there is a positive and significant influence of the Islamic financial literacy variable, Islamic branding on student decisions in using Islamic banking services, while the religiosity variable has a positive but not significant effect on student decisions in using Islamic banking services. Keywords: Using Islamic Banking Services, Islamic Financial Literacy, Islamic Branding, Religiosity, and Student Decisions

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